Avnet Inc. (AVT Quick QuoteAVT - Free Report) and TD SYNNEX (SNX Quick QuoteSNX - Free Report) are two prominent technology distributors serving two different layers of the artificial intelligence (AI) industry. Avnet focuses heavily on electronic components, serving manufacturers across industrial, automotive, communications and computing markets. TD SYNNEX has a broader IT distribution and solutions portfolio, spanning cloud, cybersecurity, data center infrastructure, hardware and services.

With the AI industry growing, both stocks are set to benefit. So the question remains: Which stock has more upside potential? Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case.

The Case for AVT Stock

Avnet is positioned to benefit from the continued buildout of AI and data-center infrastructure through its broad electronic-component distribution and supply-chain capabilities. Data center and networking were among the leading end markets in the fourth quarter of fiscal 2026, with all end markets posting double-digit year-over-year and sequential growth. The combination of semiconductor, IP&E and embedded offerings gives Avnet exposure to the expanding component requirements associated with increasingly complex computing and networking systems.

Avnet participates across a broad component supply chain. AVT’s Electronic Components business generated $7.8 billion of fourth-quarter sales, up 49% year over year, while the company highlighted data center and networking among the key demand drivers. This breadth allows Avnet to capture component demand as AI systems require increasingly sophisticated computing, power, connectivity and networking architectures.

AI deployments are increasing demand not only for compute components but also for networking and connectivity products. Avnet's fourth-quarter results implied networking and data center as leading sources of end-market growth, while lead times were trending higher across most product categories and book-to-bill ratios remained above parity across all regions. These indicators point to firm underlying demand entering fiscal 2027.

Avnet's Farnell business provides an additional avenue to capture component demand as AI, networking and other technology applications expand. Farnell's fourth-quarter operating margin reached 9% compared with 5.2% in the prior quarter and 4.3% a year earlier. The improvement provides Avnet with a higher-margin earnings contributor alongside the larger Electronic Components business.

However, Avnet's opportunity is not dependent solely on AI spending. In fourth-quarter fiscal 2026, demand increased across all end markets, led by data center, networking, aerospace & defense and industrial applications. The Zacks Consensus Estimate for AVT’s fiscal 2027 earnings implies year-over-year growth of 240%. The Zacks Consensus Estimate for AVT’s first-quarter fiscal 2027 earnings has remained unchanged for the past 30 days.

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The Case for SNX Stock

TD SYNNEX is well-positioned to benefit from growing investment in AI and cloud infrastructure. As enterprises move beyond AI experiments toward large-scale deployments, they require advanced servers, storage, networking equipment and software. They also need help integrating, securing and managing these systems.

TD SYNNEX's global distribution network and technical capabilities allow it to serve these needs. Its Hyve Solutions business adds another growth opportunity by designing and manufacturing computing infrastructure for technology customers. In the third quarter of fiscal 2026, Hyve Solutions' revenues increased 52% year over year to $3.8 billion.

SNX is gaining from rising demand for AI infrastructure, with its Hyve Solutions business emerging as an important growth driver. Hyve provides data center infrastructure that supports advanced computing workloads. As businesses expand their AI capabilities, demand for such systems could create further opportunities for the company.

In the third quarter of fiscal 2026, Hyve's gross billings surged 117% year over year to $7 billion. Manufacturing growth exceeded 130%, while supply-chain services increased more than 90%. These figures point to strong demand for Hyve's infrastructure offerings as customers invest in the computing capacity needed for AI applications.

With all these tailwinds, TD SYNNEX expects revenues between $21.8 billion and $22.6 billion for the fourth quarter of fiscal 2026. SNX’s non-GAAP earnings are projected at $5.65-$6.15 per share, representing 54% year-over-year growth at the midpoint. The Zacks Consensus Estimate for the same is pegged at $5.95, indicating year-over-year growth of 55.4%. Estimates have been revised upward in the past 30 days.

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Stock Price Performance and Valuation of SNX & AVT

Shares of SNX and AVT have surged 69.6% and 93.3%, respectively, in the year-to-date period.

YTD Performance Chart

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AVT is trading at a forward 12-month Price-to-Sales ratio of 0.23X, which is lower than its median of 0.24X, while SNX is trading at a forward sales multiple of 0.22X, in line with its median.

Forward 12-Month (P/S) Valuation Chart

Image Source: Zacks Investment Research

Conclusion: SNX vs. AVT

Although AVT offers strong semiconductor exposure, SNX appears better positioned to capitalize on AI infrastructure spending through Hyve Solutions, which is delivering rapid revenue growth and upward earnings estimate revisions. Its broader IT distribution portfolio adds diversification, while its forward sales multiple remains in line with historical levels. These factors make SNX compelling for investors seeking AI-driven growth. SNX sports a Zacks Rank #1 (Strong Buy) at present, while AVT carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.