▶ Full Post Text
I have not seen this posted on finX or Reddit, but I like Volex PLC and would love a second opinion (preferably critical). A \~1.15b GBP company that supplies cable to top hyperscaler data centres, among other things (also consumer electricals, EVs, off-highway, and medical).
The financial metrics are clean:
Mkt cap 1,15B
\*2026 est revenue 917m GBP and P/S 1,26
**Supply Chain Mapping**
What is more interesting, I did supplier chain mapping by looking at imports. What I found out is that Volex is a supplier to Foxconn/Hon Hai Technology Group through two of its subsidiaries: Foxconn Baja California, operating in Mexico, and Claud Network Technology in Singapore. The latter focuses on servers, data centres, network devices, and cloud hardware. [https://www.importyeti.com/supplier/volex-cable-assembly-zhongshan](https://www.importyeti.com/supplier/volex-cable-assembly-zhongshan)
The relationship is relatively well established, with over 200 shipments to the Foxconn ecosystem. But Volex does not supply only Foxconn; it also has supplier relationships with Flextronics (83 shipments) and Tesla (58 shipments).
And while the TESLA connection has been widely known for a while, because in 2023 Tesla selected Volex as a licensed manufacturer/partner for the NACS EV charging couplers/connectors. The Volex-Foxconn and Volex-Flextronics link has not been written about. Tesla is a 1,23T USD Company. Foxconn is a 119.4B USD company. Flextronic is a 55,66B USD company. And Volex sits in the supply chain of each of the three.
**Foxconn Leads to NVIDIA**
Moreover, the VLX-FOXCONN supplier relationship situates Volex within the NVIDIA ecosystem. Foxconn (Hon Hai Technology Group) is a major, official NVIDIA partner.
There are other links too. In June 2020, Volex received a formal “Supplier Recognition Award” from Mellanox for long-term collaboration and manufacturing support (especially in Suzhou, China, and Batam, Indonesia). Mellanox was acquired by Nvidia in that very same year. [https://www.volex.com/news/latest-news/volex-receives-supplier-recognition-from-mellanox](https://www.volex.com/news/latest-news/volex-receives-supplier-recognition-from-mellanox)
In 2024, Volex CEO Nat Rothschild confirmed that they are supplying high-speed copper interconnect cables to both Nvidia and Amazon. Rothschild stated that Volex has a multi-decade relationship with one of the businesses Nvidia acquired. [https://ng.investing.com/news/transcripts/earnings-call-volex-reports-strong-h1-performance-revenue-exceeds-500m-93CH-1633665](https://ng.investing.com/news/transcripts/earnings-call-volex-reports-strong-h1-performance-revenue-exceeds-500m-93CH-1633665)
And that business, as I wrote above, is Mellanox. [https://nvidianews.nvidia.com/news/nvidia-to-acquire-mellanox-for-6-9-billion](https://nvidianews.nvidia.com/news/nvidia-to-acquire-mellanox-for-6-9-billion)
**Amazon Link**
With regard to Amazon, another supporting piece of evidence, besides the 2024 CEO statement, is the CREDO x VOLEX lawsuit (now settled), in which Credo sought an injunction barring Volex from using Active Electrical Cables before the patent dispute is resolved. But there was a carve-out for Volex products for use in Amazon Data Centres. [https://ptacts.uspto.gov/ptacts/public-informations/petitions/1557707/download-documents?artifactId=PrvF\_iR8XTUW0n1XslzadeGtR5knbtpKwA06aBlS8\_ymNxbnA7hW-RE](https://ptacts.uspto.gov/ptacts/public-informations/petitions/1557707/download-documents?artifactId=PrvF_iR8XTUW0n1XslzadeGtR5knbtpKwA06aBlS8_ymNxbnA7hW-RE)
\_\_\_\_
Disclaimer: I hold 1.8k VLX shares.