TE Connectivity Ltd. (NYSE:TEL) Q2 2024 Earnings Call Transcript

Operator: Today’s final question will come from the line of William Stein with Truist Securities.

William Stein: All right. I’m going to ask yet another question about AI. Terence, my industry checks reflect that there’s really about 3 companies that have meaningful content here and TE is one of those 3, there’s a couple — 2 others. Can you talk about the competitive dynamics among these maybe your defensibility and your opportunity to push into their spaces? And also what makes the 3 of you more capable than others that sort of protects that maybe protect you against new entrants into this very attractive category.

Terrence Curtin: No. Thanks, Will. So first off being, I think there’s an element here when you deal with high speed, the 3 of us all have a very good capability. And when you sit there, we’re all differently. Some of us have different scale than others, but I do think that is the uniqueness when you’re getting to the speed levels of where these chips are going to GPUs or going — TPUs are going to, you’re dealing with speeds that are very unique — that is a very technical innovation that I think we all do well. And so I think it is a competitive space between us. I also think that you continually move up the technology curve and you also have ramps that our customers expect to bring them to life for all very important to our customers.

And that’s why we even said earlier to the question that I answered, I expect our share to be similar to what it was in the cloud. So I think it’s very important how we make sure what we do and the connectivity space really make sure we enable the AI path because we do play an important role in to really make sure it comes to life. And that’s what we get excited about. So it’s a great opportunity. We have. Certainly, it’s a great opportunity for industry to capitalize on as well.

Sujal Shah: Okay. Thank you, Will. I’d like to thank everybody for joining us this morning on the call. If you have any additional questions, please contact Investor Relations at TE. Thanks again, and have a nice day.

Operator: Today’s conference call will be available for replay beginning at 11:30 a.m. Eastern Time today, April 24 on the Investor Relations portion of TE Connectivity’s website. That will conclude the conference for today.