Morgan Stanley upgraded CDW to Overweight on AI-driven server demand, forecasting the server market will reach $809 billion in 2026, up 82% year-over-year. The firm raised revenue and earnings projections to 3–5% above consensus for 2026–27, citing CDW’s exposure to servers, storage, networking, share buybacks and discounted valuation.
Morgan Stanley upgraded CDW to Overweight and raised its price target to $170 from $142, highlighting stronger-than-expected demand for servers supporting AI workloads.
The firm lifted its global server market forecast to $809 billion in 2026, an 82% jump year-over-year, and expects continued robust growth into 2027 as companies modernize data centers and deploy AI workloads on-premises.
Morgan Stanley boosted CDW’s revenue and earnings forecasts to 3–5% above consensus for 2026 and 2027, noting the company’s significant exposure to servers, storage and networking products, ongoing share buybacks and attractive valuation.
Analysts warned that some demand may be pull-forward purchases amid component shortages and cautioned that easing supply constraints, faster cloud migration or a weakening economy could temper the current spending cycle.
