Should Avnet's (AVT) Sensirion Distribution Deal Signal a Shift in Its Technology Growth Strategy?

• On October 2, 2025, Sensirion Holding AG announced the addition of Avnet to its global distribution network, expanding access to Sensirion’s sensor technologies through Avnet’s extensive supply chain and engineering resources.
• This collaboration aims to integrate precise sensing solutions across a wider range of applications by combining Sensirion’s product expertise with Avnet’s global market reach and value-added services.
• We’ll explore how Avnet’s expanded sensor portfolio through Sensirion accelerates its momentum in supporting digitalization and high-growth technology sectors.

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Avnet Investment Narrative Recap

For investors considering Avnet, the core thesis centers on the company's ability to capitalize on global digitalization trends and increasing demand for advanced electronic components, particularly in high-growth sectors like IoT and industrial automation. The recent partnership with Sensirion expands Avnet's sensor portfolio, strengthening its value proposition, yet it may not materially alter the most significant short-term catalyst, recovering global demand, nor does it offset the ongoing risks of margin compression or regional demand imbalances.

Among the company’s latest announcements, the appointment of PricewaterhouseCoopers as Avnet’s new independent auditor on September 30, 2025 stands out. While this change may assure stakeholders of continued financial transparency and governance, it remains only indirectly relevant to near-term catalysts like inventory management and margin improvement.

In contrast, investors should stay alert to the persistent risk that rising sales in lower-margin Asian markets could further pressure Avnet’s overall profitability if...

Read the full narrative on Avnet (it's free!)

Avnet's narrative projects $25.5 billion in revenue and $680.5 million in earnings by 2028. This requires 4.8% yearly revenue growth and a $440.3 million earnings increase from the current earnings of $240.2 million.

Uncover how Avnet's forecasts yield a $52.75 fair value, in line with its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community have valued Avnet’s shares between US$52.75 and US$107.10. While some expect margin growth as industry demand recovers, you can explore why others see considerable uncertainty ahead.

Explore 4 other fair value estimates on Avnet - why the stock might be worth over 2x more than the current price!

Build Your Own Avnet Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Avnet research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Avnet research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Avnet's overall financial health at a glance.

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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.

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