3 Tech Stocks Boosting Buyback Capacity in the Face of the Sector's Recent Tumble
Key Points
-
Interested in Amphenol Corporation? Here are five stocks we like better.
-
Amid a tech sector sell-off, NXP Semiconductors, Amphenol and F5 announced large buyback authorizations signaling confidence in their future prospects.
-
NXP added $5 billion in buyback capacity as data center demand grows, while Amphenol unveiled a $4 billion repurchase program alongside a 20% dividend increase.
-
F5 announced an additional $1.5 billion buyback despite a 20.4% post-earnings stock drop, and analysts see over 40% upside for Amphenol shares.
Investors have hit tech stocks hard over the past few weeks. The Technology Select Sector SPDR Fund (NYSEARCA: XLK), a commonly used proxy for the sector’s performance, is down more than 7% in October. Fears around the AI buildout’s sustainability and disappointing earnings reports from Big Tech have been key drivers of the decline.
Amid the sell-off, three notable tech stocks are signaling confidence in the future by announcing substantial buyback authorizations. This list includes one name that has ridden the AI wave higher and higher, and others that are just now starting to participate more meaningfully.
→ L3Harris Stock Took a Beating—Is a 20% Rebound Next?
NXP’s Data Center Demand Picks Up, Adds Huge Buyback Capacity
First up is NXP Semiconductors (NASDAQ: NXPI), a chip stock that is up approximately 17% in 2026. NXP’s business primarily serves automotive and industrial customers. While NXP has not been a huge AI winner thus far, data center demand is starting to pick up, with the company expecting its data center revenue to exceed $500 million in 2026. NXP believes this business will scale to over $1 billion in the coming years, and sees physical AI as a long-term growth opportunity.
During its latest earnings call, the firm made a significant buyback announcement, adding an incremental $5 billion in repurchase capacity. This brings the company’s total buyback capacity to $6.3 billion. With a market capitalization near $66 billion, this represents around 9.5% of the firm’s value, giving it substantial buyback firepower.
→ Marvell Eyes a Swing for the AI Networking Fences as Markets Weigh Lumentum Price Tag
The company also notes that the authorization positions it to accelerate buybacks beginning in Q4, suggesting that its repurchases will increase compared to recent quarters. In Q3, the company spent $103 million on buybacks, significantly below its long-term average.
The planned acceleration suggests the company may see its shares as a strong value at recent levels.
→ Starbucks Says Its Turnaround Is Done—The Numbers Make a Strong Case (With 1 Catch)
AI Winner Amphenol Announces $4 Billion Buyback Program
In contrast to NXP, Amphenol (NYSE: APH) has been a massive beneficiary of the AI boom so far. The stock has posted a moderate but still strong return near 18% in 2026. This comes after shares soared 41% in 2024 and another 96% in 2025.
The connector, cable and sensor maker saw its revenue rise 65% year-over-year (YOY) last quarter to a record $10.2 billion. The company’s acquisition of CommScope significantly increased its growth rate, but sales still grew by 37% YOY on an organic basis. Meanwhile, orders increased 99% YOY, with a book-to-bill ratio of 1.19:1, signaling continued demand momentum.
Amphenol indicated confidence in its long-term outlook by announcing a three-year, $4 billion repurchase program. This plan will become effective at the beginning of 2027, with the firm expecting to exhaust the capacity under its previous program by the end of 2026.
Given Amphenol’s size, the program represents only about 2.1% of its market capitalization. However, the company is also returning more capital to shareholders through higher dividends. Amphenol announced a 20% dividend increase, after accounting for its recent stock split, moving its payout to 15 cents per share. Amphenol’s forward yield is approximately 0.77%.
F5 Holds Huge Buyback Capacity After Dramatic Sell-Off
Last up is cybersecurity company F5 (NASDAQ: FFIV). Despite the market clobbering shares after its latest earnings report, F5 has performed strongly in 2026, up around 32%. Prior to its 20.4% post-earnings drop, F5 shares were up around 80% on the year.
This decline came even as F5 handily beat estimates on sales and earnings per share (EPS). Revenue increased by 13% YOY to $917 million, around $33 million higher than expected. Meanwhile, EPS of $4.42 was 16 cents higher than expected. The company also saw its AI-related offerings exceed $100 million in bookings, up 300% YOY. The bookings primarily came from AI data delivery offerings.
F5 pointed to a slowdown in its forecast for fiscal year 2027, projecting revenue growth of 8% to 9%, down from 11% in 2026.
The company also cited margin pressure as it grapples with higher component costs and invests in pursuing AI opportunities. These factors influenced the stock’s sell-off.
During its earnings call, F5 announced an additional $1.5 billion share repurchase program, bringing its total capacity to $1.8 billion. One silver lining of F5’s stock price decline is that this added capacity can now buy back many more shares than it otherwise could. F5’s buyback capacity is now equal to around 9% of its market capitalization, a hefty figure.
Analysts Eye 40% Upside in Amphenol
Analysts see substantial upside ahead for Amphenol, even after the stock’s impressive gains over the past few years. The MarketBeat consensus price target near $112 implies more than 40% upside.
IT datacom sales represented 48% of the company’s revenue last quarter, and three-fourths of those sales were related to AI. IT datacom also drove massive growth, increasing 117% YOY in the United States. In turn, Amphenol’s fortunes largely depend on the continued expansion of AI data centers, making hyperscaler capital expenditure guidance for 2027 critical to watch.
The article “3 Tech Stocks Boosting Buyback Capacity in the Face of the Sector’s Recent Tumble” was originally published by MarketBeat.