President Trump recently exempted smartphones, computers, and many other electronic and tech devices and components from his reciprocal tariffs. A new guidance from US Customs and Border Protection that was issued on Friday, April 11 came after Trump had imposed 145% tariffs on products from China. The guidance also includes exemptions for semiconductors, solar cells, flat panel TV displays, flash drives, and memory cards.
READ ALSO: 14 Best American Tech Stocks To Buy Now and 10 Best EV Stocks to Buy Under $50.
The White House explained that these exemptions were made because President Trump wants to give companies time to move their production and manufacturing to the US. On Sunday, April 13, US Commerce Secretary Howard Lutnick pointed out that these electronics and components would soon be covered under new tariffs. President Trump also said on social media that these products will receive no exceptions.
According to a Federal Register notice put online, the US Commerce Department started a national security investigation into imports of semiconductor technology and related products. The official document calls for public comments on the investigation with the comment period stated to end on May 7, 2025. This further confirms that chips and the electronic supply chain are not to be excluded from President Donald Trump’s tariff plans.
The investigation covers a wide variety of items. These include chip components like silicon wafers, equipment used to make chips, and “downstream products that contain semiconductors.” Semiconductors play a crucial role in various modern electronic devices and this investigation could have a big impact on the tech and electronics industries.
With this background in mind, let’s take a look at the 10 best electronic components stocks to buy now.
A research and development laboratory with scientists examining sophisticated electronic components.
Our Methodology
To compile our list of the 10 best electronic components stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest electronic components companies. We sorted our results based on market capitalization and picked the top 25 electronic components stocks. We also reviewed our own rankings, financial media reports, and various online resources to compile a list of the best electronic components stocks. Next, we focused on the 10 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 10 best electronic components stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? 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 Electronic Components Stocks to Buy Now
10. Universal Display Corporation (NASDAQ:OLED)
Number of Hedge Fund Holders: 30
Universal Display Corporation (NASDAQ:OLED) is an electronic components company that is focused on the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials. These solutions are used in display and solid-state lighting applications. The company’s proprietary technologies and materials, including its breakthrough high-efficiency UniversalPHOLED technology, help manufacturers deliver high-quality OLEDs for use in a wide range of consumer electronics like TVs, smartphones, and smartwatches. Universal Display Corporation (NASDAQ:OLED) ranks among the best electronic components stocks to buy now.
On April 17, Goldman Sachs lowered its price target on Universal Display Corporation (NASDAQ:OLED) from $196 to $172 ahead of the company’s Q1 earnings. However, the firm kept a “Buy” rating on the stock. The firm’s analyst told investors in a research note that the company’s near-term results are expected to be relatively solid but noted that potential demand fluctuations due to tariff uncertainties could impact performance. Goldman Sachs also pointed out that there are concerns about Universal Display Corporation’s (NASDAQ:OLED) visibility in the second half of the year. These concerns reflect a weaker backdrop in critical end markets like smartphones.
9. Littelfuse, Inc. (NASDAQ:LFUS)
Number of Hedge Fund Holders: 31
Littelfuse, Inc. (NASDAQ:LFUS) is an American diversified industrial technology manufacturing company. It produces fuses, relays, relays, semiconductors, switches, sensors, and a range of other components. The company’s products are found in a range of industrial, transportation, and electronics end markets. Littelfuse, Inc. (NASDAQ:LFUS) ranks among the best electronic components stocks to buy now.
The company ended the year 2024 with strong performance in its Electronic segment. Littelfuse, Inc. (NASDAQ:LFUS) reported that the segment reached its highest book-to-bill ratio since Q2 2022. In 2024, the electronics market trends showed mixed results but improved in Q4 2024. Data center remained a major growth driver driven partly by AI applications. Littelfuse, Inc. (NASDAQ:LFUS) reported important new electronics end-market design wins, a meaningful data center win for a cooling application in North America, and an infrastructure application in Japan. The company secured datacom, server, and computing wins in North America, China, and Taiwan. Littelfuse, Inc. (NASDAQ:LFUS) also secured business wins for building technology and automation applications in North America, China, Taiwan, and India. The company’s management believes that these business awards combined with the company’s broad technology capabilities and diverse market exposure position the company well to deliver solid earnings growth in 2025.
