Morgan Stanley upgrades CDW on stronger AI-driven server demand

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Morgan Stanley upgraded CDW Corporation to Overweight and raised price targets across several IT hardware names, arguing that enterprise server demand is proving far more resilient than expected as companies accelerate investments in AI infrastructure and data center modernization. The brokerage raised its forecast for the global server market to $809 billion in 2026, up 82% year over year, and now expects robust growth to continue into 2027. Morgan Stanley raised revenue and earnings forecasts for server-exposed companies including Dell Technologies, Hewlett Packard Enterprise, IBM, Ingram Micro, TD Synnex and CDW, with estimates now averaging 3%–5% above consensus for 2026 and 2027. The brokerage identified TD Synnex as its preferred way to gain exposure to the trend but also upgraded CDW, citing its significant exposure to servers, storage and networking products, improving earnings outlook, share buybacks and discounted valuation. Morgan Stanley lifted CDW's price target to $170 from $142, while increasing TD Synnex's target to $341 from $271.

Impact on stocks 6

Information Technology▲ · 3 stocks
CDW Corp
CDW
▲ PositiveDemandrelevance

Morgan Stanley upgraded CDW to Overweight, citing stronger AI-driven server demand and improved earnings outlook.

Synnex Corporation
SNX
▲ PositiveDemandrelevance

Morgan Stanley raised TD Synnex's price target, identifying it as preferred exposure to resilient enterprise server demand.

Artificial Intelligence▲ · 3 stocks

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