Ingram Micro (INGM) faces focus shifting from refresh cycles to demand elasticity, which may hit growth in H2, amid rising component costs, RBC Capital Markets said in a note emailed Tuesday after the company's Q4 results.

However, demand for cloud and artificial intelligence infrastructure and services is likely to increase the company's profitability and lead to free cash generation of over 30% on a two-year combined basis, the note said.

RBC highlighted the fact that Ingram is well placed to capture spending in AI infrastructure. The company is monetizing graphics processing unit and AI opportunities via its "Enable AI" program, which offers services to help customers deploy AI solutions at scale, the note said.

Also, the company's Xvantage platform may keep accelerating "profitable growth and help navigate an increasingly complex supply chain, cost pressures and more stringent vendor partnership agreements" which may make Ingram "more strategic" to original equipment manufacturers, RBC said.

RBC has an outperform rating on Ingram and $24 price target.

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