In this article, we will look at the 11 Best Computer Hardware Stocks to Invest in Right Now.
What’s Driving the Computer Hardware Industry?
According to a report by Research and Markets, the international IT hardware market was valued at $130.86 billion in the current year. It is expected to grow at a compound annual growth rate of 7.86% to reach $191.03 billion by 2029. One of the key factors driving the computer hardware industry has been the rise of artificial intelligence in personal computers and notebooks. According to a March 18 report by Canalys, around 48 million AI PCs are expected to be shipped during 2024, representing 18% of the total PC shipments. The report highlights that this is just the beginning of a major market transition, as AI PC shipments are expected to exceed 100 million next year, accounting for more than 40% of all PC shipments.
In a recent statement, Ishan Dutt, Principal Analyst at Canalys emphasized the transformative potential of AI-capable personal computers. He forecasts that the proliferation of AI-accelerating silicon will lead to the shipment of over 150 million AI-capable PCs by the end of 2025. These devices are expected to enhance user experiences significantly through dedicated on-device AI capabilities, which will drive productivity gains and enable personalized device interactions at scale. Additionally, Dutt highlighted that these PCs will offer improved power efficiency, stronger security, and reduced costs associated with executing AI workloads locally rather than relying on cloud services.
Moreover, Kieren Jessop, another analyst at Canalys, added that this shift towards AI-capable PCs is likely to result in a 10% to 15% price premium compared to standard PCs without integrated Neural Processing Units (NPUs). By 2025, it is anticipated that over half of PCs priced at $800 or more will feature AI capabilities, projected to exceed 80% by 2028. This trend is expected to significantly increase the overall market value of PC shipments, rising from $225 billion in 2024 to over $270 billion by 2028.
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These latest AI PCs have actively helped recover global PC shipments, thereby uplifting the overall computer hardware industry. According to a report by IDC published on October 8, global PC shipments dropped 2.4% during Q3 2024, however, this indicated a recovery as the shipments had dropped by around 14% and 16.5% in Q3 of 2023 and 2022, respectively. According to Jitesh Ubrani, research manager at IDC, there is a clear resurgence in demand for PCs among both consumers and commercial buyers. However, this demand is still predominantly focused on entry-level models, spurred by the recovering economy and seasonal back-to-school purchases in North America. The anticipated arrival of AI-enabled PCs, such as Copilot+ models and upcoming offerings from other major hardware companies, is expected to invigorate the premium segment in the near future.
With that, let’s take a look at the 11 best computer hardware stocks to invest in right now.
A close-up of a cyber security hardware device used for protection.
Our Methodology
To compile the list of 11 best computer hardware stocks to invest in right now, we used the Finviz stock screener to get a preliminary list of computer hardware companies sorted by market cap. Next, we researched to check if the companies were pure play. Our criteria to call a company pure play was to check if the majority source of revenue for the company came through its operations in the computer hardware industry. Lastly, we ranked our shortlisted stocks in ascending order of the number of hedge fund holders as of the third quarter of 2024, sourced from Insider Monkey’s database.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11 Best Computer Hardware Stocks to Invest in Right Now
11. IonQ, Inc. (NYSE:IONQ)
Number of Hedge Fund Holders: 17
IonQ, Inc. (NYSE:IONQ) is a technology company that specializes in quantum computing. Quantum computers store zeros and ones simultaneously in qubits, which allows more data to be processed faster than simple computers.
IonQ, Inc. (NYSE:IONQ) is developing trapped ion technology which shrinks an average quantum process from feet to just a few inches. This will not only unlock vast commercial applications, but will also make quantum computers more affordable, faster, and more accurate. Currently, the company sells its computers to government customers and universities, and partners with other companies to integrate quantum computing into different industries. During the fiscal third quarter of 2024, the company reported bookings worth $63.5 million including a $54.5 million deal with the United States Air Force Research Lab (AFRL) and a $9 million agreement with the University of Maryland to provide state-of-the-art quantum computing access at the National Quantum Lab at Maryland (QLab).
While the third quarter revenue for IonQ, Inc. (NYSE:IONQ) grew by an impressive 102% year-over-year and exceeded guidance, what’s more impressive is its efforts toward commercializing quantum computers. It has become the only seller of quantum computing products on Amazon Web Services, Google Cloud, and Microsoft Azure. Moreover, management has also partnered with advanced computer design simulation company Ansys and biotechnology company AstraZeneca to enhance the integration of quantum computing with the computer-aided engineering industry and drug discovery and development, respectively.
Management anticipates the quantum computing industry’s total addressable market is growing exponentially and will reach $65 billion by 2030, highlighting significant room for growth. Moreover, it has also raised its full-year guidance to between $38.5 million and $42.5 million. IonQ, Inc. (NYSE:IONQ) is one of the best computer hardware stocks to invest in right now.
10. Logitech International S.A. (NASDAQ:LOGI)
Number of Hedge Fund Holders: 18
Logitech International S.A. (NASDAQ:LOGI) is another computer hardware company known for manufacturing and selling a wide range of computer peripherals such as keyboards, mice, streaming equipment, video collaboration hardware, tablet accessories, and much more. During the second quarter results for fiscal 2025, the company posted total sales of $1.12 billion, up 6% year-over-year. Management attributed this growth to improved demand for its Gaming and Keyboards & Combos products, which improved by 7% and 8%, respectively. Moreover, the non-GAAP net income also improved 210 basis points benefiting from lower inventory costs and lower cost of production.
In addition to impressive quarterly results, two main factors make Logitech International S.A. (NASDAQ:LOGI) one of the best computer hardware stocks to invest in right now. Firstly, the global PC shipments are improving. According to a report by IDC, global PC shipments declined only 2.4% during the third quarter of 2024. This is a huge improvement considering the decline of 14% and 16.5% for the same quarter in 2023 and 2022. The improvement in PC shipments indicates the demand for computer peripherals is growing as well.
Moreover, the report highlighted that generative AI PC sales are anticipated to grow from only 50 million units in 2024 to 167 million by 2027. This is important for Logitech International S.A. (NASDAQ:LOGI) because the company has been working on incorporating AI into its products and tools. Management has taken encouragement from the improved demand and has updated the full-year outlook for fiscal 2025. It now expects sales growth between 2% to 4%, compared to the previous expectation of 1% to 3%.
9. Pure Storage, Inc. (NYSE:PSTG)
Number of Hedge Fund Holders: 31
Pure Storage, Inc. (NYSE:PSTG) is one of the best computer hardware stocks to invest in right now. It specializes in flash-based storage solutions that process data faster than normal Solid State Drives, or SSDs, and Hard Drives. Management is focused on developing high-performance storage technologies that support hybrid cloud architectures essential for data-heavy applications such as AI and cloud environments.
Two prominent contributing factors make Pure Storage, Inc. (NYSE:PSTG) an interesting investment opportunity. First is its aim to enter the hyperscaler market. Recently the company achieved a significant milestone by securing its first design win with a top-four hyperscaler. This marked a pivotal moment in its strategy to penetrate the hyperscale market. The hyperscale market currently accounts for 60% to 70% of all hard disk drives purchased globally. Management aims to transform this landscape by providing cost-effective flash storage that enhances power efficiency and reduces physical space requirements in data centers. Moreover, the company also deepened its partnership with Kioxia, a leader in NAND flash technology, to enhance its offerings for hyperscalers.
The second contributing factor to the company’s success is its unique subscription-based model, powered by its Evergreen program that allows customers to pay-as-you-go. It ensures that customers receive regular technology updates without making large up-front payments and also drives a predictable revenue stream for the company. In fact, during the most recent quarter i.e. fiscal third quarter of 2025, Pure Storage, Inc. (NYSE:PSTG) improved its subscription revenue by 22% year-over-year to reach $376.4 million. Its subscription annual recurring revenue was also up 22%, at $1.6 billion. Looking ahead, management is anticipating full-year revenue for fiscal 2025 to be around $3.15 billion, indicating an 11.5% year-over-year growth.
8. Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 33
Super Micro Computer, Inc. (NASDAQ:SMCI) is a computer hardware company that specializes in manufacturing high-performance storage systems including MP servers, GPUs and co-processors, motherboards, and more. One of their key products is direct liquid cooling (DLC) for servers, essential for cooling GPUs in data centers and high-performance environments.
The company has capitalized on the AI revolution through its storage solutions as during the past 3 years its top and bottom line have grown by more than 61% and 121%, respectively. However, Super Micro Computer, Inc. (NASDAQ:SMCI) dropped lately due to the delay in filing the 10-K form for the latest fiscal year ending June 30, 2024, and accusations of wrongful accounting. To cater this, management has appointed an independent auditor, who is working on following the compliance plan to ensure the company remains listed on the NASDAQ stock exchange. Moreover, on December 2 the company reported that an independent special committee found no wrongdoing in the company’s accounting.
Despite the technical troubles, the business of Super Micro Computer, Inc. (NASDAQ:SMCI) looks robust. As per its update on first quarter results for fiscal 2025, the company expects net sales to be between $5.9 billion to $6 billion, with the midpoint of the expected range indicating an impressive 181% increase year-over-year. It is one of the best computer hardware stocks to invest in right now.
Columbia Acorn Fund stated the following regarding Super Micro Computer, Inc. (NASDAQ:SMCI) in its Q3 2024 investor letter:
“Super Micro Computer, Inc. (NASDAQ:SMCI) had a tough quarter due to a confluence of negative events. It declined, but is still up significantly for the year. While demand for the company’s AI server racks remains strong, with revenue up over 100%, gross margins have fallen sharply for two straight quarters, implying a price war. In addition, Super Micro was the subject of a short-seller report and a delay in filing its annual report with the SEC. We have been taking profits in the stock all year and have only a small position, which we are maintaining given the strong performance and demand for Super Micro’s AI racks and a depressed stock valuation.”
7. NetApp, Inc. (NASDAQ:NTAP)
Number of Hedge Fund Holders: 38
NetApp, Inc. (NASDAQ:NTAP) is a prominent player in the computer hardware and data management industry. It specializes in unified data storage solutions, integrated data services, and cloud operations (CloudOps). In addition to cloud data services designed to enhance data management across different platforms, the company manufactures and sells all-flash and hybrid arrays, which are high-performance storage systems optimized for speed and efficiency.
The company has been working on enhancing its storage system products portfolio. During the second quarter of fiscal 2025 results, NetApp, Inc. (NASDAQ:NTAP) announced that it has launched new all-flash ASA A-Series storage systems, and new midrange and high-end FAS hybrid flash storage arrays. These new products provide powerful high-end capabilities but are affordable and enable a secure cyber vault for recovery from ransomware attacks.
According to the CEO, George Kurian, the recent quarter was record-breaking for all-flash storage systems as its All-flash array annual recurring revenue improved 19% year-over-year to an all-time high of $3.8 billion. As a result, its GAAP net income improved substantially to $299 million from $233 million in the second quarter of fiscal year 2024. Management remains confident as they are already closing deals for its all-flash storage systems across various regions and with its pipeline growing the prospects remain bright. It is one of the best computer hardware stocks to invest in now.
Artisan Mid Cap Value Fund stated the following regarding NetApp, Inc. (NASDAQ:NTAP) in its Q3 2024 investor letter:
“With regard to sales, we exited NetApp, Inc. (NASDAQ:NTAP), an enterprise data storage and solutions company. Shares had moved into the higher end of our range of fair value on strong earnings results and enthusiasm about the long-term growth potential from artificial intelligence for the company’s storage solutions.”
6. HP Inc. (NYSE:HPQ)
Number of Hedge Fund Holders: 42
HP Inc. (NYSE:HPQ) is a leading computer hardware stock to invest in right now. The company focuses on personal computers and printing technology operating through three main segments Personal Systems, Printing, and Corporate Investment.
The company has been making significant strides in improving its Personal Systems segment, which accounted for around 68% of the total revenue during the fiscal fourth quarter of 2024. The segment revenue improved 2.1% year-over-year to reach $9.59 billion, driven by a revival in commercial units sold on the back of development in its AI PCs. HP Inc. (NYSE:HPQ) announced a series of breakthroughs in enhancing AI within its systems. For instance, its PC portfolio is now equipped with AI companions that help analyze private files, create content, and quickly respond to various tasks. Moreover, during the prior quarter, the company had launched the most powerful next-gen AI business notebook, EliteBook, powered by 55 TOPS of NPU performance.
HP Inc. (NYSE:HPQ) remains an interesting opportunity due to its AI PC line-up. According to a report by IDC, generative AI PC sales are expected to grow by around 234% by 2027. This revival in international PC shipments will help the company generate extensive gains as during the latest quarter PCs already accounted for more than 15% of its total shipments.
Greenlight Capital stated the following regarding HP Inc. (NYSE:HPQ) in its Q2 2024 investor letter:
“In addition to gold, we had four material winners in our long portfolio this quarter. HP Inc. (NYSE:HPQ) jumped from $30.22 to $35.02. After seven quarters of declines, PC sales turned marginally positive during the quarter. The industry appears to be in the early stages of an upcycle, perhaps to be enhanced by recently launched AI-enabled PCs that are expected to ramp up over the next several quarters.”
5. Seagate Technology Holdings plc (NASDAQ:STX)
Number of Hedge Fund Holders: 46
Seagate Technology Holdings plc (NASDAQ:STX) is a computer hardware company specializing in data storage solutions. It plays a critical role in powering the AI revolution by helping cloud computing companies through its innovative storage systems.
The company manufactures all kinds of storage drives including Hard Drives, Solid State Drives (SSDs), and Hybrid Drives. It is known for its Heat Assisted Magnetic Recording (HAMR) drive, which is a key breakthrough in its nearline storage drives that act as an intermediary between online and offline storage. Moreover, its HDDs are also in high demand for cloud storage environments as HDDs typically account for nearly 90% of bytes stored in public cloud environments.
As per a report by Goldman Sachs, cloud computing sales are expected to go up to $2 trillion by the end of 2030. This indicates an impressive opportunity for Seagate Technology Holdings plc (NASDAQ:STX) as its nearline storage drives are already in high demand. During the fiscal first quarter of 2025, management noted that the revenue was driven by robust demand in its nearline cloud segment. Revenue for the quarter came in at $2.17 billion after growing 49% year-over-year. Moreover, its non-GAAP gross margins were at a decade-high of 33.3%. Considering that the management remains confident to continue delivering revenue growth in the future and demand for its products is expected to improve, it is one of the best hardware stocks to invest in right now.
4. Dell Technologies Inc. (NYSE:DELL)
Number of Hedge Fund Holders: 60
Dell Technologies Inc. (NYSE:DELL) is one of the pioneers in computer desktops, servers, storage solutions, monitors, gaming products, and much more. It has gained an indispensable position in the AI market due to its AI servers. It is one of the best computer hardware stocks to invest in now.
Servers produced by the company are key components for hyperscale data centers. During 2024, the number of hyperscale data centers (greater than 100,000 feet) reached 1,000m with at least 120 expected to come online on an annual basis due to increasing demand from AI. During the third quarter of fiscal 2025, Dell Technologies Inc.’s (NYSE:DELL) Infrastructure Solutions Group, which deals with AI servers, reported record revenue of $11.6 billion, up 38% year-over-year.
Management believes its total addressable market for AI infrastructure will reach $265 billion by 2027, and a market-leading position within the AI servers means there is much to gain for the company. It already witnessed demand for its AI-optimized servers improve by 11% quarter-over-quarter to $3.6 billion. Moreover, a healthy AI backlog of $4.5 billion during the quarter also advocates for its robust position in the market. Looking ahead, management expects next quarter’s revenue to be in the range of $24 billion and $25 billion, indicating 10% growth.
Carillon Scout Mid Cap Fund stated the following regarding Dell Technologies Inc. (NYSE:DELL) in its Q2 2024 investor letter:
“Dell Technologies Inc. (NYSE:DELL) was a top contributor despite reporting disappointing first-quarter earnings results, because investors looked through the near-term disappointment and expected strong growth from AI-related servers and personal computers. We expect Dell to participate in the growth of artificial intelligence hardware, especially as enterprises invest more aggressively. We like the company’s depth and breadth of products and services, as well as its focus on keeping costs low.”
3. Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 66
Western Digital Corporation (NASDAQ:WDC) is one of the best computer hardware stocks to invest in right now. It operates as a technology company specializing in manufacturing storage solutions, including Solid State Drives (SSDs), Hard Disk Drives (HDD), and Flash Storage Drives.
The company exercises its competitive edge of higher gross margins and robust demand originating from cloud customers. As HDD accounts for nearly 90% of the data stored in public clouds, demand for its HDD and flash drives remains high. During the fiscal first quarter of 2025, Western Digital Corporation (NASDAQ:WDC) grew its Cloud segment revenue by 153% year-over-year. Management attributed the growth to higher shipments of its nearline HDDs and SSDs to data center customers.
Moreover, the company also differentiates due to its adoption of UltraSMR technology that enhances reliability and capacity of its storage solutions. While the overall revenue growth of 49% year-over-year is impressive, what’s more encouraging is a 34.3% increase in GAAP gross margins, which stood at 37.9% during the recent quarter. Western Digital Corporation (NASDAQ:WDC) is also improving its portfolio. On November 21, the company announced several high-performance and high-capacity portable SSDs, including SanDisk Extreme Pro and WD Black SN7100 NVMe. Management remains confident for its product demand to remain robust and is expecting $4.20 billion and $4.40 billion in revenue for the next quarter.
Parnassus Mid Cap Fund stated the following regarding Western Digital Corporation (NASDAQ:WDC) in its Q2 2024 investor letter:
“We re-initiated a position in Western Digital Corporation (NASDAQ:WDC), a manufacturer of memory semiconductor chips and hard disk drives, as we believe earnings expectations are far too low. Semiconductors have been another of our most-alpha-generative industries, thanks to the industry’s secular tailwinds and our in-house expertise. Western Digital stands to benefit from the rapid growth of memory-hungry AI applications. The valuation for Western Digital was low relative to its peers, giving us a way to participate in AI at a reasonable valuation.”
2. Arista Networks, Inc. (NYSE:ANET)
Number of Hedge Fund Holders: 70
Arista Networks, Inc. (NYSE:ANET) specializes in providing advanced networking technologies primarily for large data centers and cloud environments. It develops high-speed networking products that facilitate efficient data transfer and communication within data centers and across cloud services. For instance, their Ethernet switches are essential for connecting various devices and managing data flow. Its product offering is categorized into three main segments, including Core Products, Cognitive Adjacencies, and Network Software and Services.
Management has prioritized developing AI-driven networking solutions while enhancing its Core Products portfolio. Currently, Core Products account for 60% to 65% of the total revenue mix, with the Americas being the largest market contributing more than 81% to its sales. During the third quarter results for fiscal 2024, Arista Networks, Inc. (NYSE:ANET) announced significant corporate and government partnerships. For instance, the company in collaboration with Meta is innovating its Etherlink portfolio to meet the demand for AI-centric networking. It introduced new products including Ethalink 7700, and enhanced its 800-gigabit Ethernet offerings.
Moreover, on the government side Alabama Fiber Network, a consortium of eight electric cooperatives selected Arista Networks, Inc. (NYSE:ANET) as its provider of routing and switching equipment for its robust middle-mile network project. This initiative delivers affordable, high-capacity, and reliable internet access to last-mile providers and large enterprises throughout underserved rural areas across Alabama.
Demand for its networking technologies and software remains robust as during the third quarter the company grew its revenue by 20% year-over-year to $1.81 billion. In addition, its GAAP gross margins remained robust at 64.2%, compared to 62.4% from the prior year. It is one of the best computer hardware stocks to invest in right now.
Madison Mid Cap Fund stated the following regarding Arista Networks, Inc. (NYSE:ANET) in its Q2 2024 investor letter:
“We trimmed our positions in Arista Networks, Inc. (NYSE:ANET) and Carlisle Companies. Both of these companies have witnessed strong multi-year growth in their stock prices, which have resulted in elevated valuations. While we remain confident in the long-term prospects of both of these businesses, we trimmed our holdings to more appropriate position sizes given the risk/reward offered.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) is the best computer hardware stock to invest in right now. Previously, the company was known for revolutionizing the gaming market with its Graphics Processing Units (GPUs). Currently, it is a leader in AI infrastructure with its GPUs powering data centers, autonomous driving, and robots.
The company still generates handsome revenue from its Gaming segment. It generated $3.8 billion from the segment during the fiscal third quarter of 2025, up 15% year-over-year. However, its GPU application within the data center industry is the real game changer. Data Center revenues were up 112%, standing at $35.1 billion. The segment revenue even topped management’s expectation of $32.5 billion.
That’s not it, NVIDIA Corporation (NASDAQ:NVDA) has been continuously upgrading its GPU portfolio to cater to the growing need for its products in the AI and data center industry. On March 18, the company unveiled the Blackwell platform marking a significant advancement in AI computing technology. The Blackwell architecture includes the GB200 GPU, which is recognized as one of the most powerful chips available right now. The demand for its Blackwell and Hopper platform led the Data Center revenue growth with its H200 GPU sales increasing to double-digit billions of dollars. Management categorized it as the fastest product ramp-up in its history.
Ithaka Group’s Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artifi cial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefi ted from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted another strong beat[1]and-raise quarter, where the company upped its F2Q25 revenue guidance above Street estimates, showcasing its dominant position in the buildout of today’s accelerated computing infrastructure.”
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) 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 NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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