Arrow Electronics (ARW) Stock Rises Sharply Amid AI Infrastructure Surge

Harbor Funds, an investment management company, released its Q2 2026 investor letter for "Harbor Mid Cap Value Fund". The letter can be downloaded here . Global equities experienced a sharp rally in Q2 2026, with the S&P 500 returning 15.2%, its strongest quarter since 2020, driven by a shift from software to hardware in the Artificial Intelligence capital spending cycle. Small caps outperformed large caps, with the Russell 2000® gaining 21.5% compared to the Russell 1000's 15.1%. Growth stocks led within large caps, while Information Technology rose about 33%, contributing significantly to the S&P 500's return. The Harbor Mid Cap Value Fund returned 13.99%, outperforming its benchmark, the Russell Midcap Value Index. Strong stock selection in Consumer Discretionary, Real Estate, and Financials contributed positively, although an underweight in Information Technology negatively impacted results. Despite ongoing economic uncertainties, the investment philosophy remains committed to a disciplined value approach. Check the fund's top five holdings for its best picks in 2026.

In its second-quarter 2026 investor letter, Harbor Mid Cap Value Fund highlighted Arrow Electronics, Inc. (NYSE: ARW ) as a contributor to performance. Arrow Electronics, Inc. (NYSE:ARW) offers products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. On September 04, 2026, Arrow Electronics, Inc. (NYSE:ARW) closed at $215.97 per share. Over the past month, Arrow Electronics, Inc. (NYSE:ARW) returned 6.30%, and its shares are up 70.76% over the past year. Arrow Electronics, Inc. (NYSE:ARW) has a market capitalization of $10.99 billion, and its stock has traded within a 52-week range of $101.79 to $237.33.

Harbor Mid Cap Value Fund stated the following regarding Arrow Electronics, Inc. (NYSE:ARW) in its Q2 2026 investor letter:

"The top contributors in the second quarter included three Information Technology holdings: TD Synnex, Arrow Electronics, Inc. (NYSE:ARW), and Hewlett Packard Enterprise. Arrow Electronics was also up nearly 50% in the quarter, benefiting from the buildout of AI infrastructure. Arrow reported first quarter earnings well in excess of expectations and announced a sizeable new share repurchase program totaling nearly 10% of outstanding shares."

Arrow Electronics, Inc. (NYSE:ARW) is not on our list of the 40 Most Popular Stocks Among Hedge Funds . According to our database, 61 hedge fund portfolios held Arrow Electronics, Inc. (NYSE:ARW) at the end of the second quarter, up from 45 in the previous quarter. While we acknowledge the potential of Arrow Electronics, Inc. (NYSE:ARW) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .