Synnex Corp. (SNX) is a hidden gem in the AI trade, according to Morgan Stanley. It benefits from AI spending without the drawbacks, as it distributes products for OEMs like HP and Dell. SNX’s stock is up 32% in the last year, offering a dividend yield of 1.16%. Earnings have consistently beaten estimates, with positive growth prospects ahead.

With a forward P/E of 11.55x, SNX is undervalued compared to other AI stocks. The company’s gross margins are average for a distribution business model. Analysts are bullish on SNX, with a price target of $200, suggesting a 39% gain. Management is optimistic about Q4 growth, reinforcing Morgan Stanley’s positive outlook on the stock.

Read more at Yahoo Finance: You Might Not Have Heard of This Tech Stock, But Analysts Say It Should Be a Core Holding for 2026