The global consumer electronics market has seen significant growth, reaching a valuation of $755 billion in 2024, with projections to hit $1.15 trillion by 2031, according to Research and Markets. This growth is driven by rising demand for innovative devices that enhance convenience. Consumer electronics, including smartphones, tablets, smartwatches, and connected home devices, have transformed how people live, work, and connect.
Continuous innovation also keeps the industry competitive, with companies focused on attracting consumer interest. Despite global economic challenges, the market remains resilient, driven by advancements in AI. In 2023, smartphone shipments reached about 1.2 billion units, reinforcing this category’s profitability. The market is projected to grow to $1.13 trillion by 2025, with a 3% annual growth rate. North America, particularly the US, is at the forefront of the consumer electronics market, leading globally in terms of adoption and demand. The region is expected to maintain this leadership due to its swift embrace of cutting-edge technologies. In the US, the fast-paced lifestyle increasingly revolves around digital solutions, with automation becoming a key priority.
Tim Seymour, Seymour Asset Management CIO, appeared on CNBC’s ‘The Exchange’ on January 18 to signify upcoming events and how they might correlate with current market dynamics. Seymour notes that the tech sector, which includes consumer electronics, has rallied under President Trump, creating a favorable hiring environment. He believes that at least half of the MAG7 stocks have defensible valuations. Regarding tariffs, he suggests that consumer-centered sectors, like consumer electronics, will be impacted first, with reports indicating that tariffs could negatively affect the economy, as highlighted by the World Bank and IMF.
Discussing the economic implications of tariffs, Seymour expressed skepticism about tax increases while acknowledging uncertainty around reductions. He reflected on the tariffs imposed against China in 2018 and 2019, which impacted manufacturing, including consumer electronics. While tariffs may hinder growth, he noted that a strong dollar could enhance the competitiveness of US products abroad. Seymour focused on tech companies with solid valuations for their growth potential. Large MNCs in consumer electronics may perform better with upcoming announcements and are less vulnerable to strategic influences than smaller firms. While he is cautious about growth scares overshadowing inflationary pressures in 2025, he maintains a positive sentiment overall.
Given this context, we’re here with a list of the 11 best consumer electronics stocks to invest in now.
Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the top consumer electronics stocks. We then selected the 11 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11 Best Consumer Electronics Stocks to Invest in Now
11. Wearable Devices Ltd. (NASDAQ:WLDS)
Number of Hedge Fund Holders: 3
Wearable Devices Ltd. (NASDAQ:WLDS) develops non-invasive neural input interfaces. It creates wearable devices that allow users to control digital devices through touchless finger movements. Its products, such as the Mudra development kit and Mudra Band, allow seamless interaction with various devices, from smartphones and computers to AR/VR headsets and smart home appliances.
The company’s H1 2024 revenue was driven by strong sales within the consumer electronics segment which was fueled by the launch and subsequent shipping of the Mudra Band for Apple Watch. This is a wristband that allows users to control their Apple Watch, iPhone, Mac, iPad, and Apple TV using touchless finger movements with the help of AI. The introduction of new features for the Mudra Band, such as touchless gesture control for the Apple Watch, compatibility with the Apple Vision Pro, and ChatGPT integration, boosted its demand.
As 2025 began, Wearable Devices Ltd. (NASDAQ:WLDS) launched the Mudra Link, which is its neural gesture-control wristband compatible with Android, macOS, and Windows devices. The Mudra Link and Mudra Band are together expected to expand the company’s addressable market by offering higher device compatibility. Moreover, ongoing R&D efforts, which include collaborations with industry leaders like Qualcomm, will drive product innovation and expand the company’s technological capabilities.
10. LG Display Co. Ltd. (NYSE:LPL)
Number of Hedge Fund Holders: 4
LG Display Co. Ltd. (NYSE:LPL) manufactures innovative thin-film transistor liquid crystal display (TFT-LCD) and organic light-emitting diode (OLED) panels. Its products power a range of devices, from televisions and computers to smartphones and cars. It also caters to industrial applications and offers additional services like janitorial services and intellectual property management.
The consumer electronics segment boosted the company’s growth in Q4 2024 with a 15% sequential revenue increase. The total revenue reached KRW 7832.9 billion which was driven by an expansion in smartphone panel shipments. This is attributed to the increasing demand for smartphone panels, particularly those featuring OLED technology. The proportion of OLED products in total sales expanded by 7% to reach 60% in the fourth quarter.
It plans to diversify its range of smartphone models to cater to different market segments. However, LG Display Co. Ltd. (NYSE:LPL) expects to see a mid-single-digit decline in area shipment in Q1 2025 due to seasonality in TV panel shipments. But by producing more panels and a greater variety of smartphone screens, the company expects strong performance compared to a typical first quarter.
9. Vuzix Corp. (NASDAQ:VUZI)
Number of Hedge Fund Holders: 5
Vuzix Corp. (NASDAQ:VUZI) provides smart glasses and AR technologies. It designs and manufactures wearable devices for enterprise, medical, and defense sectors. It offers several products, from head-mounted displays and wearable computers to optical components and display engines. With a strong patent portfolio and a global reach, it’s at the forefront of AR technology development.
Its Q3 2024 earnings call highlighted the strategic partnership with Quanta Computer as a key driver of growth within the consumer electronics segment. This collaboration enables the company to supply millions of waveguides for AR and AI-powered smart glasses to Quanta’s extensive network of OEM clients. Waveguides are optical components that precisely direct light within smart glasses. This allows for clear and accurate image projection. Quanta’s $20 million multi-phase investment underscores the mutual commitment to revolutionizing the AR industry.
This shift towards the consumer electronics OEM market aligns with the emerging trends in the smart glasses industry, where fashion and lifestyle are increasingly important factors. The entry of major fashion brands like EssilorLuxottica and the anticipated launch of Apple’s AR glasses further validate the mainstreaming of smart glasses. Vuzix Corp. (NASDAQ:VUZI) is well-positioned to capitalize on this trend as a leading supplier of waveguide technology.
8. VOXX International Corp. (NASDAQ:VOXX)
Number of Hedge Fund Holders: 9
VOXX International Corp. (NASDAQ:VOXX) manufactures and distributes electronic products. Its portfolio spans various sectors, including automotive electronics (security systems, and infotainment), consumer electronics (audio, video, and home theater), and biometric security solutions.
The company’s sales experienced a slight decline of $2.5 million year-to-date in FQ2 2025, but it observed strong performance in newer products and a rise in higher-margin offerings. Sales of new soundbars increased significantly in the quarter and the company expanded into new audio categories, such as the Bluetooth Music City series and upcoming party speakers. VOXX International Corp. (NASDAQ:VOXX) expects that the top-line revenue will remain consistent with the previous year, but profitability will improve.
In H1 2025, despite a $21 million decline in total consumer segment sales, the company generated a pretax income of $4.6 million. This was an improvement compared to a loss of $7 million in the previous fiscal year. It now projects a stronger H2 for the Premium Audio segment. It also maintains a smaller international accessory business with growth potential.
7. Universal Electronics Inc. (NASDAQ:UEIC)
Number of Hedge Fund Holders: 10
Universal Electronics Inc. (NASDAQ:UEIC) provides control and sensor technology solutions. It develops and manufactures universal remote controls, smart home devices, and related software and hardware. It serves several customers, like video service providers, OEMs, and retailers, with a focus on enabling seamless connectivity and control within home entertainment and smart home ecosystems.
The company’s growth is driven by the increasing demand for innovative home entertainment solutions. For this reason, it expanded its market share within the video space and achieved a 5% increase in market share with telecom providers across North America and Europe. Similarly, it recently secured a design win for a battery-free remote control, which eliminates the need for traditional batteries and enhances the user experience. Its retail business is also resurging, with a 7% year-over-year growth in retail sales after a period of stagnation.
Universal Electronics Inc.’s (NASDAQ:UEIC) continued investment in cutting-edge technologies, like QuickSet and Nevo AI, positions it to grow. QuickSet is a platform that simplifies the setup and control of entertainment and smart home devices. Nevo AI is an AI-powered digital assistant that uses QuickSet to provide personalized user experiences, such as voice control and proactive recommendations.
6. GoPro Inc. (NASDAQ:GPRO)
Number of Hedge Fund Holders: 13
GoPro Inc. (NASDAQ:GPRO) is a leader in action cameras and is known for its durable and versatile HERO series cameras. It caters to adventure enthusiasts and content creators with a range of waterproof cameras, mounts, accessories, and editing software. Its subscription services offer cloud storage, camera replacement, and access to editing tools for creating immersive content.
The company’s consumer digital imaging market is expanding, particularly in segments like action cameras and 360-degree cameras. The recent launch of the HERO 13 Black, which features advanced technology and innovative Lens Mods, showcases this commitment. It’s an action camera that captures high-quality 5.3K60 video and 27MP photos with improved image stabilization. It is compatible with a range of lens mods for enhanced creativity. This model is expected to drive revenue growth within the premium action camera segment. The redesigned affordable entry-level HERO camera also aims to improve profit margins by 15% compared to previous entry-level models.
The company expanded its retail footprint by 6,300+ new doors in 2023, reaching a total of over 25,000 retail locations globally. In Q3 2024 alone, it added 1,200+ new doors, which include 500 Sam’s Club locations in the US, for increased access to consumers. GoPro Inc.’s (NASDAQ:GPRO) strategy involves reducing operating expenses by $110 million to ~$250 million in 2025, while simultaneously investing in innovation and differentiation within the consumer electronics segment.
5. Himax Technologies Inc. (NASDAQ:HIMX)
Number of Hedge Fund Holders: 15
Himax Technologies Inc. (NASDAQ:HIMX) is a fabless semiconductor company that specializes in display technologies that power many consumer electronics. It provides essential components like display driver ICs and timing controllers for smartphones, tablets, laptops, and TVs. It also develops innovative solutions for emerging technologies, such as AMOLED displays and touch controllers, enhancing the user experience across a range of devices.
TF International Securities analyst Ming-Chi Kuo predicted strong growth for the company on January 22. This sentiment was driven due to its exclusive supply of micro-lens arrays for TSMC’s AI-focused COUPE FAUs. These COUPE FAUs (Front-End-of-Line Assembly and Test) are a key technology for advanced AI and computing. The company’s revenue is projected to surge from $1.16 billion in 2026 to $2.4 billion by 2028, with EPS rising from $1.00 to $3.40. Himax Technologies Inc. (NASDAQ:HIMX) will exclusively supply arrays for the first and second-generation COUPE, with mass production starting in H2 2026.
However, in Q3 2024, the consumer electronics segment played a significant role in the company’s growth, particularly in the areas of tablets and smartphones. Tablet sales exceeded guidance due to rush orders from leading end customers, while smartphone sales experienced a decent double-digit sequential increase driven by new product launches from leading phone makers. New product launches and technological advancements in these markets help Himax Technologies Inc. (NASDAQ:HIMX) develop innovative solutions and grow in its market. It is actively developing next-generation OLED Tcon ICs for tablets, notebooks, and automotive applications.
4. Sony Group Corp. (NYSE:SONY)
Number of Hedge Fund Holders: 21
Sony Group Corp. (NYSE:SONY) is a global leader in consumer electronics, entertainment, and technology. It’s known for its innovative products, such as televisions, cameras, audio systems, and gaming consoles like PlayStation. It also produces and distributes a range of entertainment content, from movies and music to video games and streaming services.
The company’s recent alliance with KADOKAWA CORPORATION made it the largest shareholder in KADOKAWA with an acquisition of 12,054,100 shares, which represents ~10% ownership. It’s a major Japanese media conglomerate involved in publishing, film, gaming, animation, and digital media. This alliance aims to use both companies’ strengths to maximize the global value of intellectual property. They plan to collaborate on adapting KADOKAWA’s IP into various media formats and expand global content distribution.
On January 8, Morgan Stanley named Sony Group Corp. (NYSE:SONY) its top pick in consumer electronics and Japan semiconductors, raising its price target to ¥4,000 from ¥3,400. This was fueled by the company’s sustained growth, particularly in its games and network services segment. This comes from its user base of over 110 million players, its appeal to game developers, and its evolving business model. By effectively using player data and AI to enhance user engagement, PlayStation has increased software and service sales while improving efficiency and reducing costs.
Aristotle International Equity Strategy highlighted the company’s strong fourth-quarter performance. This was driven by PlayStation’s robust network effects, Crunchyroll’s expanding reach, and the growing demand for the company’s image sensors. The firm stated the following regarding Sony Group Corporation (NYSE:SONY) in its Q4 2024 investor letter:
“Sony Group Corporation (NYSE:SONY), the global provider of videogames and consoles, image sensors, music, and movies, was a top contributor for the period. The company reported strong results driven by third-party gaming revenue and record PlayStation 5 console profitability. This was achieved despite lower console sales, which, in our view, exemplifies the strength of PlayStation’s network effects. PlayStation is the world’s largest gaming platform with 116 million monthly active users, making it an attractive market for game developers and allowing users to play the most advanced games at lower costs than PCs. In its Pictures segment, Crunchyroll (the anime business Sony acquired from AT&T in 2020) signed a distribution agreement with YouTube Primetime Channels, the market share leader in streaming services, which we believe will increase Crunchyroll’s subscriber base. Though a singular example, it illustrates management’s ability to better execute and further improve the segment’s profitability, a catalyst we previously identified. In addition, Sony reported improved sales of image sensors for mobile products as the global smartphone market continued its gradual recovery. Sony’s image sensor business has the largest global market share, and we believe, longer term, it is uniquely positioned to benefit from increasing demand for both autonomous driving technology in vehicles and improved image quality in smartphone cameras. As such, we continue to admire Sony’s capacity to build on its industry leadership and optimize its operations, which includes its plan for a partial spinoff of its Financial Services segment in October 2025.”
3. Sonos Inc. (NASDAQ:SONO)
Number of Hedge Fund Holders: 32
Sonos Inc. (NASDAQ:SONO) provides premium wireless home sound systems. It designs and manufactures high-quality speakers, soundbars, and accessories that allow users to easily create a multi-room audio experience throughout their homes. It’s renowned for its user-friendly interface and exceptional sound quality, which makes it a popular choice for music lovers and home entertainment enthusiasts.
The company recently introduced Arc Ultra and Sub 4 to expand its consumer electronics segment. Arc Ultra delivers immersive sound with breakthrough Sound Motion technology for deeper bass in a smaller form factor. While Sub 4 enhances bass performance with revamped audio architecture. Arc Ultra delivers up to double the bass of the previous Arc model through audio innovation. This advancement, together with the enhanced performance of Sub 4, positions the company to maintain its leadership in high-fidelity home audio.
It also focuses on user experience improvements through app enhancements. Sonos Inc. (NASDAQ:SONO) expects to invest $20 million to $30 million in app recovery efforts to ensure customer trust. While FY24 presented challenges, including a decline in revenue to $1.52 billion and a net loss of $38.1 million, the company has demonstrated a commitment to improving its software, launching cutting-edge products, and addressing customer concerns.
2. Best Buy Co. Inc. (NYSE:BBY)
Number of Hedge Fund Holders: 37
Best Buy Co. Inc. (NYSE:BBY) is an electronics retailer in the US and Canada that offers a vast selection of technology products and services to meet home entertainment and tech needs. From laptops and smartphones to TVs and smart home devices, it provides a one-stop shop for everything that is needed to stay connected, informed, and entertained. It also offers a variety of appliances, entertainment products, and services like installation, repair, and technical support.
The company’s overall Q3 2025 sales declined. Comparable sales for the domestic segment, which includes consumer electronics, decreased by 2.8% year-over-year. However, there were some bright spots, such as the computing and tablets category. These experienced a 5.2% increase in comparable sales, with laptops leading the way at 7% growth.
The sales decline was the result of macroeconomic uncertainty, customer anticipation for significant sales, and distractions during the election period. Despite these challenges, Best Buy Co. Inc. (NYSE:BBY) remains optimistic and is focusing on offering compelling deals. These include initiatives like the “Best Buy Gift Finder,” and improving store environments with refreshed layouts and dedicated staff. The company is prioritizing operational efficiency by using AI and technology to optimize logistics, improve customer support, and streamline operations.
On January 22, Morgan Stanley analyst Simeon Gutman lowered the firm’s price target on the company to $100 from $105 while maintaining an Equal Weight rating. Gutman favors hardline and broadline retailers that use scale for next-generation retail technology. He prefers those with revenue upside, market share leadership within their sub-segments, or those capitalizing on cyclical category inflections in 2025.
Mairs & Power Growth Fund initiated a position in Best Buy Co. Inc. (NYSE:BBY). The firm recognized its market share gains despite the challenging retail environment and appreciated its 5% dividend yield. It stated the following regarding the company in its Q4 2023 investor letter:
“We added two smaller positions to the portfolio in the fourth quarter as well—Piper Sandler (PIPR) and Best Buy Co., Inc. (NYSE:BBY)–both of which are Minnesota-based. We also initiated a position in Best Buy, a leading electronics retailer with more than 1,000 stores nationwide. We’ve been impressed with management’s ability to navigate a difficult retail landscape, gaining share amongst its offline competitors. The consumer electronics market is suffering from a spending hangover after the Pandemic, but we are starting to see green shoots of a recovery; in the meantime, Best Buy offers a 5% dividend.”
1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 158
Apple Inc. (NASDAQ:AAPL) is a tech giant known for its innovative consumer electronics products. Its popular products include iPhones, Mac computers, iPad tablets, and wearables like Apple Watches and AirPods. It also provides an ecosystem of services like app stores, streaming services, and cloud solutions, which enhance the user experience across its entire product line.
Recent years have witnessed a slowdown in iPhone sales growth. But the company’s investments in AI, showcased by the recent introduction of Apple Intelligence, will reignite growth. Apple Intelligence, which is a suite of AI-powered tools and services integrated into the iPhone, assists users with tasks like email composition, notification summarization, and appointment scheduling.
Following its launch of Apple Intelligence, Rosenblatt Securities maintained a Buy rating for Apple Inc. (NASDAQ:AAPL) with a $262 target price on January 27. This was despite concerns about disappointing iPhone performance in the December quarter, echoed by UBS. While Apple Intelligence and upcoming software updates hold promise for future growth, intense competition from Chinese brands like Huawei, which offer advanced AI and aggressive pricing, poses a significant challenge. The company experienced a 7.7% sales drop in China in FY24. This decline came from competition from domestic brands and a sluggish Chinese economy. To mitigate this, it’s shifting its focus from hardware sales towards revenue streams like its App Store services.
Mar Vista Strategic Growth Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q3 2024 investor letter:
“Apple Inc. (NASDAQ:AAPL) stock was strong in the quarter as investors viewed the company’s generative AI roadmap and iPhone 16 product cycle positively. The market was reminded of the strength of the Apple ecosystem as management demonstrated how generative AI solutions would be integrated into its iOS 18 operating system, which was broadly released in the iPhone 16 late in calendar Q3. We believe Apple’s generative AI-enabled products should spur a meaningful iPhone upgrade cycle and create new avenues of monetization through its app store and advertising offerings. We believe this will support intrinsic value growth that will range between high single digits and low double-digits over our investment horizon.”
As we acknowledge the growth potential of Apple Inc. (NASDAQ:AAPL), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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