TD SYNNEX Corporation (SNX): Among Overlooked Tech Stocks to Buy Now

Yahoo

02-05-2025

We recently published a list of . In this article, we are going to take a look at where TD SYNNEX Corporation (NYSE:SNX) stands against other overlooked tech stocks to buy now.
After overcoming major macroeconomic challenges, the IT sector has started 2025 with fresh vigor. The tech sector is now ready for a resurgence after a period of instability characterized by high inflation, rising interest rates, and worldwide unpredictability. The sector is expected to be 'healthy' or 'very healthy' in 2025, according to 62% of tech executives polled by Deloitte. Global IT spending is expected to increase by 9.3%, driven mostly by double-digit growth in software and data center investments. As companies move AI initiatives from pilot projects to full-scale production deployments, analysts anticipate that generative AI, cybersecurity, and cloud services will continue to be important growth drivers.
The rate of layoffs dropped significantly in 2024, indicating growing stability. But new difficulties have surfaced, especially in relation to geopolitical tensions and regulatory barriers. The world economy is already feeling the effects of President Trump's expansive tariff plans, which include additional charges on major tech manufacturing countries like Taiwan, India, and Vietnam that range from 26% to 49%. Although imports of semiconductors, which are essential for the development of AI, have been temporarily exempted, tech companies that rely on international supply chains face new risks as a result of the unstable trade policy climate.
Meanwhile, generative AI is proving to be a double-edged sword. While it is projected to contribute 21% to U.S. GDP by 2030, as reported by the World Economic Forum, there are growing concerns about the technology displacing millions of jobs, particularly administrative roles. As the World Economic Forum highlights, the solution lies not in halting AI innovation but fostering 'Authentic Intelligence'—an approach emphasizing the collaboration of human critical thinking with AI's capabilities to ensure inclusive economic growth.
Additionally, cybersecurity has become a significant priority on the strategic agenda. As the use of AI increases, so does the attack surface available to hackers. By 2028, it's expected that global spending on cybersecurity will exceed $200 billion, as businesses emphasize bolstering their defenses. However, only 24% of existing gen AI projects are thought to be sufficiently secure, indicating that trust is still a major obstacle to the widespread use of AI.
In summary, despite the fact that 2025 holds great promise for the IT industry due to advancements in generative AI, cloud migration, and robust IT investment, businesses still have to deal with a complex web of ethical, geopolitical, and legal issues. Successful companies will strike a balance between daring technological innovation, careful risk management, strategic supply chain diversity, and a dedication to upholding stakeholder and customer confidence.
Against this dynamic backdrop, let's look at 10 Overlooked Tech Stocks to Buy Now, which are not only ready to capitalize on upcoming opportunities but may also provide attractive upside potential for investors seeking beyond the conventional mega-cap giants.
To find overlooked tech stocks, we started by looking for companies with a market capitalization greater than $5 billion, ensuring a concentration on financially strong, large-cap enterprises. We chose stocks from this category that had a price-to-earnings (P/E) ratio of less than 15, using the P/E ratio as a conventional valuation indicator to highlight relatively affordable earnings-driven stocks. We then evaluated these firms based on hedge fund sentiment, utilizing data from Insider Monkey's fourth quarter 2024 report. Finally, we chose the ten companies with the least number of hedge fund investors to represent our list of Overlooked Tech Stocks to Buy Now.
Why are we interested in 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).
A customer happily using their mobile device in a busy urban setting.
P/E Ratio: 9.31
Hedge Fund Holders: 33
TD SYNNEX Corporation (NYSE:SNX), a key distributor and solutions aggregator for the IT ecosystem, is strengthening its position as a critical link between technology vendors and global clients. With a portfolio that includes endpoint devices, data center technologies, cloud, cybersecurity, artificial intelligence, and hybrid solutions, TD SYNNEX assists organizations in over 100 countries in meeting increasingly complex IT demands.
TD SYNNEX Corporation (NYSE:SNX) reported remarkable performance in the first quarter of fiscal 2025, ending February 28, 2025. Gross billings rose 7.5% year-over-year to $20.7 billion, while net revenue increased 4% to $14.5 billion. Advanced Solutions climbed 7%, while Endpoint Solutions increased 8%, demonstrating broad-based success. Non-GAAP EPS was $2.80, well within the company's expectations. Although problems in its Hive business resulted in a minor drag on profits, management is hopeful that Hive will return to normal later this year. TD SYNNEX Corporation (NYSE:SNX) also confirmed mid-single-digit gross billings growth in fiscal 2025 and plans to achieve $1.1 billion in free cash flow.
Strategic moves continue to broaden TD SYNNEX's capabilities. On April 22, 2025, the company announced a partnership with Trifork, which will add cutting-edge AI, spatial computing, and scalable software solutions to the company's portfolio. This alliance will speed up digital transformation for customers in critical areas such as healthcare, finance, and energy. TD SYNNEX Corporation (NYSE:SNX) was also named NVIDIA's 2025 Distributor of the Year for the Americas for the second year in a row, reinforcing its leadership in delivering AI-powered solutions through initiatives such as Destination AI and advanced platforms built on NVIDIA's Blackwell architecture.
With its end-to-end strategy, broad technology reach, and expanding network of high-growth vendors, TD SYNNEX Corporation (NYSE:SNX) is an overlooked tech stock poised to benefit from the continuous convergence of AI, cloud, and cybersecurity trends in the global IT landscape.
Overall, SNX ranks 4th on our list of overlooked tech stocks to buy now. While we acknowledge the potential of SNX, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this 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.