WEBULL

CDW (CDW) Secures AWS Agentic AI Specialization: A Fresh Look at Whether the Stock’s Valuation Reflects Its AI Progress

Simply Wall St · 2d ago

Mission, a CDW (CDW) company, just secured Amazon Web Services Agentic AI Specialization, a recognition that puts a spotlight on CDW's push into production grade autonomous AI solutions for large enterprises.

See our latest analysis for CDW.

That backdrop makes CDW’s latest AWS recognition particularly interesting. The stock’s share price has retreated this year, with a year to date share price return of negative 15.21 percent and a one year total shareholder return of negative 17.92 percent. Its five year total shareholder return of 15.99 percent shows the longer term story has still rewarded patient holders even as near term momentum has clearly faded.

If this AI milestone has you thinking more broadly about digital infrastructure plays, it could be a good moment to explore other potential winners among high growth tech and AI stocks.

Yet with revenues still growing, earnings expanding, and the stock trading below Wall Street targets, investors now face a key question: Is CDW quietly undervalued, or is the market already pricing in its next leg of AI driven growth?

Most Popular Narrative Narrative: 20.8% Undervalued

With CDW last closing at $144.16 against a narrative fair value of $182, the spread points to meaningful upside if the thesis holds.

Expansion of CDW's software, professional, and managed services capabilities, now core to both strategy and recent M&A focus, continues to elevate recurring revenue and expand margins, supporting resilient long-term earnings growth.

Read the complete narrative.

Curious how modest growth assumptions can still justify a richer profit multiple than the sector average, while buybacks quietly amplify per share earnings power? The narrative reveals the full playbook.

Result: Fair Value of $182 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent funding pressures in government and education, combined with lower margin hardware heavy deals, could slow growth and undermine the margin improvement story.

Find out about the key risks to this CDW narrative.

Build Your Own CDW Narrative

If you see the story differently or want to stress test the numbers yourself, you can build a personalized view in just minutes: Do it your way.

A great starting point for your CDW research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Ready for your next investing edge?

Before you move on, lock in a few fresh ideas using the Simply Wall Street Screener so you are not leaving potential returns on the table.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.