Key insights
- Volex PLC, a UK-based supplier of cables and connectivity solutions, is identified as a key supplier to major tech giants including Amazon, Nvidia, Foxconn, and Tesla. Its role in supplying components for data centers and EV charging infrastructure positions it within critical growth sectors. The company's established relationships with large manufacturers like Foxconn and Flextronics, and its direct supply to Nvidia's ecosystem via Mellanox acquisition, suggest potential upside as these sectors expand. This makes Volex a company to watch for broader tech and EV
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 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
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
And that business, as I wrote above, is Mellanox. 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
____ Disclaimer: I hold 1.8k VLX shares.