Forrester Research published an interesting report in August 2014 titled Hardware Is Dead; Long Live Software. The report argued that technology was shifting towards software-driven infrastructure, gradually replacing the need for specialized hardware. While this change is still happening, many believed hardware had lost its importance. Over the years, the focus moved away from hardware, making it seem less relevant.
However, the last five years have challenged this idea and a look at the performance of the hardware and software industries shows a different trend. Over the past decade, the S&P Technology Hardware Industry Index gave a total return of 145%, or 9.4% per year (annualized total return as of March 14; Source: S&P Global). While this was lower than the S&P Software & Services Industry Index, which returned 13.5% per year, things have changed recently. Over the last five years, hardware has done better, with nearly 18% yearly returns compared to 15.6% for software. A similar pattern was seen over the last three years, though in the past year, software has started to perform better again.
The Resurgence of Hardware: Why the Sector Gained Momentum
Deloitte’s December 2024 report, Hardware is Eating the World, highlighted the return of hardware as a key part of technology growth. After years of software leading the way, hardware is now becoming more important, especially with AI-powered devices. Enterprise laptops, once seen as simple tools, are now improving with AI features. Leading computer hardware companies are promoting AI-powered PCs as a way to prepare for the future, lower cloud costs, and improve data privacy. These devices, with offline AI models, can speed up tasks like image creation and text analysis, helping workers be more productive.
The report further elaborates that beyond IT, AI hardware is expanding into the Internet of Things, making smart devices even smarter. While AI is already used in everyday products like toothbrushes, future uses could change industries like healthcare by improving medical devices. Vivek Mohindra, senior vice president of corporate strategy at Dell Technologies, points out that 30% of PCs worldwide are outdated and lack neural processing units (NPUs) to take advantage of AI improvements. Deloitte noted that AI PCs are expected to make up 40% of PC shipments by 2026, and AI-powered smartphones are also becoming more common. Experts the report quoted, compared this shift to the move from command-line computing to graphical interfaces in the 1990s. With large technology companies adding AI to their devices, hardware is becoming an even bigger part of technology’s future.
In summary, the growing role of hardware shows its increasing value in the tech industry. As AI adoption speeds up and companies invest in better computing technology, hardware innovation will continue to grow. This renewed focus on hardware presents strong investment opportunities, especially in companies leading the AI revolution. As hardware and software continue to work together, businesses at the center of this change could see strong long-term growth. For investors looking to take advantage of this trend, choosing the right hardware stocks backed by billionaire investors could be a smart move.
We have curated a list of hardware stocks just serving this purpose. So, let’s explore the 10 best computer hardware stocks to buy according to billionaires.
A technician at a sophisticated computer hardware rig, emphasizing the company’s chip-manufacturing capabilities.
Our Methodology
To identify the 10 best computer hardware stocks to buy according to billionaires, we compiled a preliminary list of hardware stocks using a review of ETFs and financial media reports. We then analysed Insider Monkey’s database of billionaire holdings to determine the most favoured hardware stocks among those investors. We then ranked top 10 of these stocks in ascending order based on the number of billionaire investors holding positions in each company as of Q4 2024. Additionally, we also provide data to assess hedge fund sentiment surrounding these stocks, utilizing data from Insider Monkey’s Q4 2024 hedge fund database to provide deeper insights into institutional investor trends.
Note: All pricing data is as of market close on March 14.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Computer Hardware Stocks to Buy According to Billionaires
10. Pure Storage Inc. (NYSE:PSTG)
Number of Billionaire Investors: 7
Billionaire Holdings: $392 Million
Number of Hedge Fund Holders: 30
Pure Storage Inc. (NYSE:PSTG) is a data storage and management company. It provides all-flash storage solutions designed to deliver high-performance, scalable, and efficient data storage for enterprises. The company specializes in modern data infrastructure through its portfolio of products, including the FlashArray, FlashBlade, and Evergreen and Portworx subscription services, which offer cloud-ready storage solutions for analytics, AI, and business applications.
In Q4 2025 (FY ends in February) results call, Pure Storage Inc. (NYSE:PSTG) management focused on advancements of its technology, increasing storage capabilities of products such as Pure Fusion v2. The company reported a design win with a hyperscaler who features in four top companies which was very positive towards demand of its products. For FY 2025, company revenue grew by 12% to $3.2 billion, with the company crossing $3.0 billion for the first time. Subscription services revenue continued to drive growth as it reached $1.5 billion, up a strong 22% year-over-year. However, total gross margin was weaker-than-expected at 71.8%, down from 73.2% in FY 2024.
Following the earnings, a Susquehanna analyst revised the price target for the company to $75 from $80 earlier, but reiterated a Positive rating on the stock. Despite the lower price target, the analyst believes that the company remains well-positioned to capitalize on the diversification of its product portfolio. Additionally, the ongoing transition to a subscription-based revenue model is expected to enhance the stability and predictability of its revenue streams.
9. Logitech International S.A. (NASDAQ:LOGI)
Number of Billionaire Investors: 7
Billionaire Holdings: $242 Million
Number of Hedge Fund Holders: 25
Logitech International S.A. (NASDAQ:LOGI) designs software-enabled hardware solutions. It develops and markets peripherals and accessories that enhance digital experiences across computing, gaming, video conferencing, and content creation. Its product portfolio includes keyboards, mice, webcams, gaming gear, and video collaboration tools used by enterprises and individuals worldwide.
On March 7, Wedbush analyst Alicia Reese upgraded Logitech International S.A. (NASDAQ:LOGI) from Neutral to Outperform and raised the price target from $100 to $125. The upgrade was underpinned by insights from the company’s recent investor day, where management highlighted a strong organic growth trajectory driven by gaming tailwinds and expansion into new markets. The analyst further noted that the company emphasized its commitment to sustaining this growth by prioritizing smaller, strategic acquisitions over large-scale mergers and acquisitions (M&A), ensuring its workforce remains focused on core business opportunities.
8. Dell Technologies Inc. (NYSE:DELL)
Number of Billionaire Investors: 11
Billionaire Holdings: $259 Million
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) is a key player in IT infrastructure modernization, with expertise in artificial intelligence (AI), software-defined solutions, and cloud-native infrastructure. The company’s extensive product portfolio includes personal computers, servers, storage solutions, networking, software, and cybersecurity.
Loop Capital analyst Ananda Baruah gave a balanced outlook on Dell Technologies Inc. (NYSE:DELL)’s Q4 2024 results. He noted that the company’s Q4 earnings report showed a 7% rise in revenue, largely due to a 22% growth in its Infrastructure Solutions Group. Artificial intelligence remains a major growth factor, with $2.1 billion in AI server shipments, $1.7 billion in AI orders, and a $9 billion AI backlog. Despite these positive trends, the firm highlights that the company’s revenue projections are affected by delays in the expected PC refresh cycle. As a result, the analyst revised Dell Technologies Inc.’s (NYSE:DELL) price target, lowering it from $185 to $130, while still recommending a Buy rating.
In a similar move, a Morgan Stanley analyst described the results as better-than-feared overall, calling the results performance as mixed but hinted that guidance could be conservative. The analyst reaffirmed an Overweight rating with an unchanged price target of $128.
7. NetApp Inc. (NASDAQ:NTAP)
Number of Billionaire Investors: 11
Billionaire Holdings: $321 Million
Number of Hedge Fund Holders: 41
NetApp Inc. (NASDAQ:NTAP), a data management and cloud storage company, focuses on hybrid and multi-cloud environments. Its offerings include ONTAP, a robust data management software, along with various all-flash and hybrid storage solutions designed to enhance performance, scalability, and efficiency for businesses.
The company’s Q3 2025 results (with its fiscal year ending in April) elicited mixed reactions from analysts. A Citi analyst, holding a Neutral rating, reduced the price target on NetApp Inc. (NASDAQ:NTAP) from $135 to $110. The analyst appreciated management’s clarification that the Q3 sales miss was not due to competitive losses but emphasized that the execution miss is likely to raise concerns among investors.
In contrast, a Loop Capital analyst maintained a Buy rating, though the price target was lowered from $150 to $130. The analyst pointed out that Q4 results represented the fifth consecutive quarter of growth in revenue and billings, primarily driven by a 10% year-over-year increase in all-flash storage sales. The report also highlighted the growing demand for AI-driven workloads as a significant growth driver. Despite facing sales execution issues, Loop Capital considers this an attractive value opportunity for investors.
6. HP Inc. (NYSE:HPQ)
Number of Billionaire Investors: 13
Billionaire Holdings: $393 Million
Number of Hedge Fund Holders: 48
HP Inc. (NYSE:HPQ) is a global provider of personal computing, printing solutions, and 3D printing technologies. The company’s product line includes the HP Spectre and Envy series of premium laptops, commercial and consumer printers, and industrial 3D printing systems.
In its Q1 2025 (FY ends in October) on February 27, the company reported a 2.4% year-over-year growth in revenue of $13.5 billion which was in-line with expectations. Adjusted EPS for the quarter was $0.74, which was near the top end of its guidance of $0.70-0.76. The company is currently working on initiatives to save costs and recently announced plans to cut 1,000 to 2,000 employees through FY 2025 which will save an additional $300 million per year.
That said, the company’s Q2 adjusted EPS guidance of $0.75-$0.85, was below consensus which currently sits at the top of that range ($0.85). While the rising component costs and US tariffs on imports from China are weighing on profit, the company has reduced its supply chain exposure to China to around 10%, which allayed some concerns.
Following the results, Evercore ISI analyst Amit Daryanani maintained his Buy rating on the stock with a price target of $40, implying an over 40% upside potential.
5. Super Micro Computer Inc. (NASDAQ:SMCI)
Number of Billionaire Investors: 13
Billionaire Holdings: $507 Million
Number of Hedge Fund Holders: 45
Super Micro Computer Inc. (NASDAQ:SMCI) designs high-performance and energy-efficient server and storage systems tailored for different industries. Its key markets include cloud service providers, enterprises, large data centers, OEM appliance manufacturers, and emerging technologies like 5G, telecommunications, edge computing, and the Internet of Things (IoT).
Super Micro Computer Inc. (NASDAQ:SMCI) experienced significant stock volatility in 2024 and 2025 due to delisting concerns. However, after filing its 10-K and other financial reports, NASDAQ confirmed its compliance with listing rules. Despite this, some investors remain cautious over internal control risks. However, in a strong vote of confidence, on March 10, Kevin Cassidy from Rosenblatt resumed coverage with a Buy rating and a $60 price target, citing SMCI’s leadership in AI-driven servers. With AI-related sales comprising 70% of revenue, the company’s advanced liquid cooling solutions stand out, doubling rack compute power and addressing cost, complexity, and reliability challenges in power-constrained data centers.
4. Seagate Technology Holdings Plc (NASDAQ:STX)
Number of Billionaire Investors: 14
Billionaire Holdings: $676 Million
Number of Hedge Fund Holders: 52
Seagate Technology Holdings Plc (NASDAQ:STX) is a prominent provider of data storage solutions, specializing in the design, manufacturing, and distribution of hard disk drives (HDDs) and solid-state drives (SSDs). Their products serve a wide array of applications, ranging from personal storage and computing to enterprise data centers and cloud storage infrastructures.
In its Q2 2025 earnings call, Seagate Technology Holdings (NASDAQ:STX) emphasized the increasing importance of HDDs for mass data storage, fueled by a projected 170x surge in GenAI-generated imagery and video from 2024 to 2028. Management expects data centers to continue integrating HDDs and NAND flash for diverse workloads. Strong cloud demand drove a 50% YoY revenue increase, with EPS rising to $2.00 from $0.12.
On March 12, Bank of America reaffirmed a Buy rating but lowered the price target from $130 to $112, citing tax-related adjustments while maintaining a positive long-term outlook on Seagate Technology Holdings (NASDAQ:STX)’s growth potential. Around the same time, Amit Daryanani from Evercore ISI also reiterated a Buy rating on the stock with a price target of $120.
3. Western Digital Corp. (NASDAQ:WDC)
Number of Billionaire Investors: 15
Billionaire Holdings: $710 Million
Number of Hedge Fund Holders: 85
Western Digital Corp. (NASDAQ:WDC) is a prominent developer and manufacturer of data storage devices and solutions. The company’s product range includes hard disk drives (HDDs), solid-state drives (SSDs), and external storage systems tailored for both consumer and enterprise markets. The company’s storage solutions find applications in personal computing, data centers, and cloud storage services, meeting the increasing global demand for reliable and high-capacity data storage.
In Q2 2025, Western Digital Corp. (NASDAQ:WDC) reported record-high data center revenue, driven by its advanced Ultra SMR technology and strong cloud partnerships. While AI-driven data demand remains robust, the company expects a short-term decline in bit shipments due to weaker PC OEM and consumer demand. Inventory adjustments are anticipated in early 2025, but recovery is expected in the second half, supported by AI-driven PC adoption during the Windows refresh cycle. Data centers and mobile markets are projected to stay strong in Q3.
As the Sandisk spin-off is now out of the way, BofA analyst Wamsi Mohan revised the price target for Western Digital Corp. (NASDAQ:WDC) to $58 (down from $82 earlier) while maintaining a Buy rating, in a report on March 13. Factoring in the spin-off, the firm now projects FY 2025 revenue at $9.3 billion and EPS at $4.52, down from its previous estimates of $16.6 billion in revenue and $6.09 in EPS. Consensus opinion on the stock is currently largely positive with a 1-year median price target of $64, which implies an upside potential of 44%.
2. Arista Networks Inc (NYSE:ANET)
Number of Billionaire Investors: 17
Billionaire Holdings: $1.6 Billion
Number of Hedge Fund Holders: 78
Arista Networks Inc. (NYSE:ANET) focuses on data-driven, client-to-cloud networking solutions designed for large-scale AI, data center, campus, and routing environments. Its key products include the Extensible Operating System (EOS), ultra-low latency Ethernet switches, routers, and software-defined networking solutions, widely adopted by hyperscale cloud providers, financial institutions, and telecommunications firms.
Although the company’s Q4 2024 results met expectations, concerns arose among some analysts about customer concentration. Arista Networks disclosed that Microsoft and Meta account for approximately 20% and 15% of total revenue, respectively. This reflects a drop in Meta’s contribution, which stood at 20% in 2023.
In response to these concerns, Piper Sandler analyst James Fish raised the price target for the stock from $106 to $108 while maintaining a Neutral rating, as detailed in his February 19th report, published a day after the results. The analyst pointed out that Q4 results were broadly in line with expectations. However, he noted that a modest increase in FY 2025 revenue growth guidance to 17% (from 15%-17% earlier) and potential business risks involving Meta have put pressure on the stock.
On the other hand, UBS analyst David Vogt offered a more optimistic perspective, upgrading Arista Networks (NYSE:ANET) to a Buy rating in his March 5 report, with an increased price target of $115. He based his upgrade on robust data center spending growth and rising metrics such as purchase commitments and deferred revenue. The analyst expressed confidence that the company’s 2025 revenue guidance might be conservative and described the stock as presenting an appealing risk/reward opportunity.
1. Apple Inc. (NASDAQ:AAPL)
Number of Billionaire Investors: 21
Billionaire Holdings: $101.7 Billion
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets innovative products, including the iPhone, iPad, Mac computers, Apple Watch, and Apple TV. The company also offers a range of software and services, such as the iOS and macOS operating systems, iCloud, advertising, payment services, Apple Music, and the App Store.
Apple Inc. (NASDAQ:AAPL) shares have faced pressure following reports of delays in introducing key features to its Siri virtual assistant. According to Bloomberg, the delays stem from quality concerns, with the technology reportedly failing to function correctly up to 80% of the time. These features were initially intended to roll out in the iOS 18.4 update scheduled for April, having been marketed since June 2024. Although the company aims to resolve the issues by 2026, the delay has sparked concerns, reinforcing the perception that the company lags behind its competitors in the field of artificial intelligence. The stock has dropped nearly 15% year-to-date.
Morgan Stanley analyst Erik Woodring has highlighted that the delay could negatively impact iPhone upgrade rates over the coming year. As a result, he has adjusted his iPhone shipment projections for 2025 and 2026, reducing them by 1%-5%. While other features are expected to contribute to unit growth, the analyst expressed skepticism regarding the impact of AI features. Without a breakthrough AI application available before the iPhone 17 launch, he does not foresee AI-driven features significantly boosting upgrade rates as previously anticipated. Consequently, he has revised his price target downward from $275 to $252, while maintaining an Overweight rating. This price target is close to the 1-year median consensus target of $255, which still suggests a robust 20% upside potential.
While we acknowledge the potential of AAPL to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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