TD Synnex: Boost IT investments – growth despite competition!

TD Synnex: Boost IT investments – growth despite competition!

TD Synnex Corporation, a global information technology distributor and solutions aggregator, is trading today at $127.31. According to the latest market data, the stock has gained 0.86% in the last five days and has registered a year-to-date increase of 3.88%. Overall, the change is an impressive 8.50%.[ MarketScreener ]

The company, founded in 1980, has focused on various areas of information technology, including hybrid cloud solutions, data analysis and artificial intelligence. The company's revenue increased from $13.84 billion in 2013 to $57.56 billion in 2023, an increase of 315%. Sales are expected to rise further to $63.9 billion in 2026.[ MarketScreener ]

Segmented products and services

TD Synnex offers a wide range of products divided into two main segments: Endpoint Solutions and Advanced Solutions. The Endpoint Solutions portfolio includes personal computers, printers, mobile phones and related software. In its Advanced Solutions division, the company offers data center technologies, including hybrid cloud, security solutions, storage, servers and hyperscale infrastructure.[ MarketScreener ]

In addition to products, TD Synnex offers services such as system design, integration solutions, logistics services, customer management and various financial and marketing services. The company serves over 150,000 customers, including commercial customers, government resellers and retailers, making it a significant player in the IT ecosystem.[ MarketScreener ]

Market analyzes and future prospects

Market research predicts that the IT services market will reach $1,420 billion by 2024, with IT outsourcing accounting for $541.1 billion. The US market is expected to generate $522 billion in 2024, driven primarily by cloud computing and digital transformation.[ MarketScreener ]

While the company is benefiting from the growing demand for cloud services, it is also facing challenges. IT pressure and pricing dynamics led to a decline in profit margins, with net margin falling from 2.14% in 2020 to 1.09% in 2023.[ MarketScreener ]

Despite these challenges, TD Synnex has a good chance of benefiting from the booming artificial intelligence with its Destination AI program, which supports partnerships with technology giants such as Nvidia, Microsoft and Intel. Market analysts recommend the stock as a Buy, with a median price target of $135.17, representing an upside of 7.09% from current price.[ MarketScreener ]