Jun. 23 at 5:54 PM
Morgan Stanley raised its total addressable market (TAM) forecast for the server industry to
$809 billion in 2026, implying 82% year-over-year growth, as enterprise demand for computing remains stronger than expected despite significant price increases. The bank said Wall Street may be underestimating earnings potential for computing-related companies in 2026 and 2027, driven by constrained compute capacity, server refresh cycles, and growing AI infrastructure needs.
Analyst Erik Woodring increased EPS forecasts by 3%-5% on average for enterprise computing firms including CDW, Dell Technologies, HPE, IBM, Ingram Micro, and TD Synnex. Morgan Stanley upgraded CDW to Overweight from Equal Weight and raised its price target to
$170 from
$142. The bank also increased targets for TD Synnex to
$341 from
$271, Dell to
$477 from
$448, and IBM to
$267 from
$225.
$CDW $DELL $HPE $MS