Shares in FTSE 250 power and connectivity solutions company Volex (LSE:VLX) have exhibited some crazy volatility recently. After rising from 500p in early July to 700p in early October, they’ve fallen back to 555p in the blink of an eye.

Is there an opportunity here for growth investors after this recent 20% drop? Let’s take a look at what’s going on.

A strong update

Volex put out a half-year trading statement yesterday (19 October). And it wasn’t bad by any means.

For the first half of the current financial year (ending 31 March), revenue is expected to be at least $710m. That would represent growth of at least 21% year on year on an organic constant currency basis.

In the update, the company said that trading in the first half was “excellent” and that it experienced year-on-year growth in every end-market. In its Complex Industrial Technology division, it saw strong growth in aerospace and defence applications, with commercial and industrial applications also growing.

Meanwhile, electric vehicles and electrification also grew very strongly. Here, revenues were “well ahead” of the prior-year period and the second half of FY26.

Looking ahead, second-half revenues are expected to be broadly similar to the first half, with current trading conditions expected to continue across most end-markets. And FY27 underlying operating profit is expected to be towards the upper end of market expectations ($145.9m to $153.3m at the time of the update).

What’s with the share price weakness?

So, why are the shares down? There are a few reasons.

One is that sentiment towards AI stocks is extremely fragile right now. Volex is certainly not the only tech company that has experienced significant share price weakness in recent weeks.

Another is that revenue growth has slowed a little from earlier in the year. The company told us this would happen a few months ago, but it seems to have spooked a few investors.

A third issue is that data centre orders have been a little soft recently on a comparative basis. In the first half of the financial year, these were down year on year.

Is this an attractive entry point?

Has an attractive entry point emerged after a 20% pullback? I think so.

With analysts expecting earnings per share of 50.3 cents for the current financial year, Volex shares can now be snapped up at a price-to-earnings (P/E) ratio of under 15. For a company with operations across data centres, EVs, healthcare, infrastructure, defence, and aerospace that is growing at a decent clip, I think that’s good value.

Of course, there are some risks around the global data centre buildout. We could see spending here slow.

Overall though, I like the risk/reward proposition at the current share price and believe the shares are worth considering. I’m tempted to buy them myself – the only thing stopping me is the fact that I already own a ton of AI stocks!

Should you invest £5,000 in Volex Plc right now?

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Edward Sheldon does not hold any positions in the companies mentioned.