TE Connectivity (TEL) will benefit from long-term growth in AI, energy and automotive markets, supporting stronger earnings, margin expansion, and potential upside to its $3 billion data-center revenue target for fiscal 2027, Oppenheimer said Friday in a report.

AI-related sales are now expected to exceed $2.2 billion this year, driven by broader hyperscaler adoption and rising demand for both existing and new platform components, the report said.

Increasing data-center complexity and power connectivity requirement, where TE Connectivity leads in electrical-optical interfaces, remain key structural growth drivers., the report said.

In automotive, TE Connectivity's China-based design strategy continues to perform well, and rising electric-vehicle production should lift content per vehicle as EV platforms require more connectivity, the report said.

Oppenheimer raised its price target on TE Connectivity to $285 from $270 and maintained its outperform rating.

TE Connectivity shares rose 3.9% in Friday trading.

Price: 234.29, Change: +8.85, Percent Change: +3.93