TD SYNNEX (SNX) Faces Price Target Cut Amid IT Spending Uncertainty

We recently published a list of 14 AI News and Ratings Making Waves on Wall Street. In this article, we are going to take a look at where TD SYNNEX Corporation (NYSE:SNX) stands against other AI news and ratings making waves on Wall Street.

According to a Fortune Business Insights report, the global data center market, valued at $242.72 billion in 2024, is expected to grow to $585 billion by 2032, at a compound annual growth rate of 11.7%. North America led the market in 2024, holding a nearly 39% share.

According to the report, generative AI is significantly impacting the sector, as its deep learning models require substantial computing power, scalable storage, and high-performance infrastructure. The market is also shifting towards hybrid and multi-cloud strategies, enabling organizations to integrate public, private, and on-premise solutions efficiently. Additionally, modular data centers are gaining traction due to their cost-effectiveness, scalability, and faster deployment compared to traditional facilities, the report stated.

Meeting AI Demand with Scalable and Sustainable Data Centers

The expansion of AI infrastructure through large-scale data center investments reflects the growing need for computational power. Companies are securing energy sources and developing specialized facilities to address scalability, sustainability, and efficiency challenges. For example, Related Companies is advancing into AI-driven data center development through its new division, Related Digital, using its expertise in renewable energy to meet rising demand from major tech firms.

In an interview at CNBC’s ‘Squawk on the Street,’ CEO Jeff Blau highlighted the company’s strategic move to assemble a specialized team to lead these projects. To support the growth, Related has secured sites with over five gigawatts of power across the U.S., investing $500 million of its own capital while planning to raise an additional $8 billion. With firms like Microsoft and Alphabet significantly increasing their capital expenditures, demand from hyperscalers remains strong. To mitigate risk, Related is securing long-term, 15-year commitments from tenants before beginning construction. Given the limited availability of power on the grid, Blau sees the company’s early investment in securing capacity as a major competitive advantage in the fast-evolving AI infrastructure landscape.

For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s Q4 database of over 1000 hedge funds.

At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

TD SYNNEX Corporation (NYSE:SNX)

Number of Hedge Fund Holders: 33

TD SYNNEX Corporation (NYSE:SNX) distributes IT products and provides solutions, including cloud services, logistics, financing, and marketing support for resellers and service providers.

On March 27, Barclays reduced its price target for TD Synnex (NYSE:SNX) from $148 to $125 while maintaining an Equal Weight rating. The firm pointed to weaker-than-expected fiscal Q1 results and Q2 guidance, mainly due to temporary demand declines in Hyve (the company’s hyperscale digital infrastructure subsidiary). Barclays believes TD Synnex’s near-term upside is limited by uncertainties in IT spending, trade policy, Hyve demand, and government budget cuts.

Overall, SNX ranks 11th on our list of AI news and ratings making waves on Wall Street. While we acknowledge the potential of SNX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.