The AI trade is often dominated by big names, so many compelling stories stay in the background just because of their small size. As the market prices in most of the AI developments among big names, investors and fund managers look towards hidden opportunities because that is what will define performance for them heading into the new year. Synnex Corp. (SNX) is one such stock, and according to Morgan Stanley, it is one of their top “Overweight” positions.
The firm’s bull thesis is quite simple. Memory cost will be a big issue in 2026, with memory cost inflation driving up costs for OEMs like HP (HPE) and Dell (DELL). SNX benefits from how well these OEMs do because it distributes their products. But it doesn't have to worry about shrinking margins due to the higher memory costs. This way, it benefits from the AI spending, minus the drawbacks. Additionally, OEMs prefer established distributors in times of price volatility. Smaller distributors fade away amid such industry crises, which eventually helps companies like SNX consolidate their market further.
