We've recently released a compilation of 10 Underrated Tech Stocks Worth Buying Today In this piece, we will examine how TD SYNNEX Corporation (NYSE:SNX) measures up against other under-the-radar tech stocks worth considering for investment right now.
Following significant macroeconomic hurdles, the information technology industry entered 2025 rejuvenated. After experiencing an unstable phase marked by soaring inflation, escalating interest rates, and global uncertainties, this sector seems poised for revival. According to a survey conducted by Deloitte among tech leaders, 62% predict that the sector will experience either "robust" or "extremely robust" health in 2025. It’s projected that overall IT expenditure globally will rise by 9.3%, fueled largely by substantial increases in software development and data center expenditures. Analysts foresee continued strong growth due to advancements in artificial intelligence, particularly generative AI; increased focus on cybersecurity measures; and expanded use of cloud computing as businesses transition their AI strategies from trial phases into comprehensive implementations.
In 2024, the pace of job cuts decreased markedly, suggesting increasing economic steadiness. However, fresh challenges have emerged, particularly due to geopolitical strains and regulatory hurdles. The global economy is now experiencing the impacts of President Trump’s wide-ranging tariffs, encompassing extra fees on key technology-producing nations such as Taiwan, India, and Vietnam at rates between 26% and 49%. Despite semiconductor imports—critical for advancing artificial intelligence—being provisionally excluded, tech firms dependent on cross-border supply lines confront heightened vulnerabilities because of this fluctuating trade landscape.
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 increasing worries regarding how this technology might replace millions of jobs, especially those in administrative positions. As the World Economic Forum The key takeaway is that we shouldn't stop AI progress; instead, we should promote "Genuine Intelligence." This strategy focuses on combining human critical analysis with AI functionalities to guarantee broad-based economic expansion.
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.
Amidst this ever-evolving landscape, we will explore 10 Underrated Technology Stocks to Consider Buying Today. These stocks have the potential not just to take advantage of emerging prospects but could also offer significant growth opportunities for those looking past the typical large-market leaders.
Methodology
In order to identify neglected technology stocks, we initially focused on businesses having a market cap exceeding $5 billion, thus concentrating on robust, sizable corporations. From this group, we selected those equities which possessed a price-to-earnings (P/E) ratio below 15, leveraging the P/E metric as an established measure to pinpoint potentially undervalued shares driven by earnings growth. Next, we assessed these entities through the lens of hedge fund interest, drawing upon information provided in Insider Monkey’s Q4 2024 analysis. Ultimately, we compiled a roster of ten firms exhibiting the lowest level of hedge fund ownership to present them as potential candidates among Underrated Technology Stocks Worth Buying Today.
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 ).
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TD SYNNEX Corporation (NYSE: SNX )
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.
In the first quarter of fiscal 2025, which concluded on February 28, 2025, TD SYNNEX Corporation (NYSE: SNX) delivered impressive financial outcomes. The company saw gross billings grow by 7.5% compared to the previous year, reaching $20.7 billion, with net revenues climbing by 4% to hit $14.5 billion. Notably, Advanced Solutions expanded by 7%, and Endpoint Solutions surged by 8%, highlighting strong overall progress. Excluding certain adjustments, earnings per share came out at $2.80, aligning closely with internal forecasts. Despite some challenges faced by their Hive division impacting profitability slightly, executives remain optimistic about a recovery for this segment during the current year. Additionally, TD SYNNEX Corporation reaffirmed predictions of moderate increases in gross billings throughout fiscal 2025 and set an ambitious target of generating $1.1 billion in free cash flow.
Ongoing strategic maneuvers are expanding TD SYNNEX’s offerings. The firm declared a collaboration with Trifork on April 22, 2025, enhancing their lineup with state-of-the-art artificial intelligence technologies, spatial computing tools, and expandable software services. This agreement aims to accelerate digital transitions for clients within key sectors like health care, financial management, and power industries. Additionally, TD SYNNEX Corporation (NYSE: SNX), having received recognition from NVIDIA as the Distributor of the Year for the Americas for two consecutive years now, has further established itself at the forefront of providing AI-driven solutions via programs similar to Destination AI and sophisticated systems based on NVIDIA’s Blackwell design framework.
Thanks to its comprehensive approach, extensive technological capabilities, and growing ecosystem of innovative suppliers, TD SYNNEX Corporation (NYSE:SNX) stands out as an underappreciated tech stock set to thrive amid the ongoing integration of artificial intelligence, cloud services, and cybersecurity within the worldwide IT sector.
Overall, SNX ranks 4th Among the lesser-known technology stocks worth considering right now, we have highlighted several options. Although Synthetix (SNX) shows some merit, we feel strongly that specific Artificial Intelligence (AI) stocks present even better opportunities for substantial gains over a brief period. Notably, one such AI stock has seen growth year-to-date in 2025, whereas many well-known AI companies experienced losses close to 25%. Should you seek an AI investment with strong prospects comparable to SNX yet trading below five times its earnings, review our detailed analysis provided in our latest report. cheapest AI stock .
READ NEXT: 20 Top AI Stocks You Should Consider Buying Today and 30 Top Stocks to Purchase Currently as Recommended by Billionaires .
Disclosure: None. This piece was initially published at Insider Monkey .
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