5 Best Computer Hardware Stocks To Buy Now

In this article, we discuss 5 best computer hardware stocks to buy now. If you want to see more stocks in this selection, check out 10 Best Computer Hardware Stocks To Buy Now. 

5. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 46

Dell Technologies Inc. (NYSE:DELL) is a global company that offers a wide range of solutions, products, and services. It operates through two segments – Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment focuses on storage solutions such as all-flash arrays, software-defined storage, and servers like rack, blade, tower, and hyperscale servers. It is one of the best computer hardware stocks to invest in. 

On April 18, Amit Daryanani, an analyst at Evercore ISI, raised the price target for Dell Technologies Inc. (NYSE:DELL) from $46 to $50 while maintaining an Outperform rating on the shares. Evercore ISI believes that Dell Technologies Inc. (NYSE:DELL)’s guidance for the fiscal year 2024 appears to be relatively conservative compared to its competitors and industry data providers. The firm also noted that the management’s recent meeting conveyed a sense of cautious optimism. 

According to Insider Monkey’s fourth quarter database, 46 hedge funds were bullish on Dell Technologies Inc. (NYSE:DELL), compared to 49 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, 4.5 million shares worth $181.8 million. 

Here is what Third Point Management has to say about Dell Technologies Inc. (NYSE:DELL) in its Q3 2021 investor letter:

“Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them.”

4. Arista Networks, Inc. (NYSE:ANET)

Number of Hedge Fund Holders: 53

Arista Networks, Inc. (NYSE:ANET) specializes in the design and sale of advanced network switches that enable software-defined networking in various environments, including large data centers, cloud computing, high-performance computing, and high-frequency trading. Arista Networks, Inc. (NYSE:ANET) is projecting first quarter revenue between $1.275 billion and $1.325 billion, surpassing the expected revenue of $1.21 billion. Additionally, they anticipate a non-GAAP gross margin of approximately 60% and an operating margin of around 40%.

On April 17, Evercore ISI analyst Amit Daryanani included Arista Networks, Inc. (NYSE:ANET) in the firm’s “Tactical Outperform” list. Daryanani believes that Arista will continue its trend of exceeding expectations and providing positive updates in the March quarter. The firm anticipates that Arista Networks, Inc. (NYSE:ANET) will surpass market expectations comfortably, attributing this success to favorable conditions in the cloud sector and improved gross margins. Evercore rated the stock as Outperform and maintained a price target of $180, considering it a top pick.

According to Insider Monkey’s fourth quarter database, 53 hedge funds is the biggest stakeholder of Arista Networks, Inc. (NYSE:ANET), compared to 42 funds in the prior quarter. Steve Cohen’s Point72 Asset Management is the largest stakeholder of the company, with 1.8 million shares worth $220 million. 

Giverny Capital made the following comment about Arista Networks, Inc. (NYSE:ANET) in its Q1 2023 investor letter:

“Our holding Arista Networks, Inc. (NYSE:ANET) continues to generate extraordinary results, which the market recognizes. Arista rose 38% during the first quarter and became our largest holding. Arista makes switches, routers and operating software that power enormous data networks, such as for cloud computing. Microsoft’s Azure cloud business and Meta Platforms’ Facebook and Instagram networks are Arista’s two most important customers. Roughly speaking, Arista has tripled its revenue and profit over the past five years and seems poised to continue growing rapidly for the foreseeable future. Demand for hyperscale computing networks may accelerate as artificial intelligence (AI) chat applications grow. By some estimates, the computer power required to answer Al chat queries is roughly seven times more than for a Google or Bing search. I think the realization that data network capacity needs to be much larger to accommodate Al has driven recent enthusiasm for Arista.

In general, I think when a stock blows through my price target the right answer is to bask in the glory and maybe splurge on a latte rather than my usual morning coffee. Don’t get itchy about locking in a profit. In this case, Arista became our largest holding and roughly 8.5% of the portfolio, while also being one of the most expensive businesses we own on a price-to-earnings basis. Arista earned $4.27 in 2022 and I believe there is good reason to expect it to double EPS again, perhaps by 2026 or 2027. But as the stock traded into the $160s, that represents a PE of 20x estimated earnings in four years. While I believe strongly in Arista’s competitive position, I know that tech giants are facing budget constraints and a pause in their own intense pace of infrastructure growth would not surprise anyone….” (Click here to read the full text)

3. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 62

Intel Corporation (NASDAQ:INTC) is a global company involved in the design, development, manufacturing, marketing, and sale of computing and associated products. The company provides a range of platform products including central processing units and chipsets, as well as system-on-chip and multi-chip packages. Additionally, Intel Corporation (NASDAQ:INTC) offers accelerators, boards, systems, connectivity products, and memory and storage products. Its products cater to various computing needs worldwide. Intel Corporation (NASDAQ:INTC) is one of the best computer hardware stocks to buy. 

On April 28, Truist increased its price target on Intel Corporation (NASDAQ:INTC) from $29 to $32 and maintained a Hold rating on the company’s shares following a smaller-than-expected loss in Q1 earnings. Intel Corporation (NASDAQ:INTC)’s performance improved significantly after two challenging quarters, as per Truist. However, while the management’s sentiment has improved, Truist would like to see additional evidence before becoming more positive on the stock.

According to Insider Monkey’s fourth quarter database, 62 hedge funds were long Intel Corporation (NASDAQ:INTC), compared to 69 funds in the last quarter. D E Shaw is a significant position holder in the company, with 13.3 million shares worth $353.7 million. 

ClearBridge Large Cap Growth Strategy made the following comment about Intel Corporation (NASDAQ:INTC) in its Q4 2022 investor letter:

“A third approach to return generation is purchasing idiosyncratic businesses that largely control their own destiny. Intel Corporation (NASDAQ:INTC), which we purchased in the first quarter on the premise that it would develop a leading domestic foundry business, has struggled with execution missteps and product delays. We are maintaining the position to provide ongoing exposure to semiconductors.”

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 106

NVIDIA Corporation (NASDAQ:NVDA) offers graphics, computing, and networking solutions in the United States, Taiwan, China, and internationally. On April 19, BofA increased its price target on NVIDIA Corporation (NASDAQ:NVDA) from $310 to $340 and assigned a Buy rating to the company’s shares. According to BofA, the rising demand for AI workloads in cloud and enterprise data centers may lead to a shift in computing power and value towards specialized accelerators like Nvidia GPUs, away from traditional server CPUs based on x86 architecture from Intel and AMD. As a result, BofA has revised its estimate for NVIDIA Corporation (NASDAQ:NVDA)’s long-term earnings power in the calendar year 2027 to $17, up from the previous estimate of $14.

According to Insider Monkey’s fourth quarter database, NVIDIA Corporation (NASDAQ:NVDA) is one of the best computer hardware stocks to invest in. At the end of December 2022, 106 hedge funds were bullish on the stock, up from 89 funds in the prior quarter. David Goel and Paul Ferri’s Matrix Capital Management is a significant position holder in the company, with 5 million shares worth $741.3 million. 

Aristotle Atlantic Focus Growth Strategy made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) contributed to outperformance, as the company announced better-than-expected fourth quarter earnings driven by a strong rebound in Gaming and an improving outlook for the Datacenter business due to the acceleration of Graphics Processing Unit (GPU) driven Artifical Intelligence (AI) deployment. The company also hosted its Global Technology Conference (GTC) in March where it further highlighted its leading technology being used to develop AI Large Language Models (LLM). The company announced new partnerships with hyperscalers for its AI cloud-based service while also releasing new software and hardware offerings that will support GPU-driven AI growth. Nvidia continues to see a growing addressable market for its products and services as AI uses become more prevalent.”

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 135

Apple Inc. (NASDAQ:AAPL) is involved in the design, manufacturing, and marketing of various products, including smartphones, personal computers, tablets, wearables, and accessories. The company’s product lineup includes the iPhone, the Mac, the iPad, AirPods, Apple TV, Apple Watch, Beats products, and HomePod. Apple Inc. (NASDAQ:AAPL) is one of the best computer hardware stocks to invest in. 

On April 26, Deutsche Bank increased its price target on Apple Inc. (NASDAQ:AAPL) from $160 to $170 and maintained a Buy rating on the shares. The analyst predicts that Apple Inc. (NASDAQ:AAPL)’s fiscal Q2 results will align with the estimates from financial analysts, with the iPhone segment performing well and compensating for any weaknesses in other areas. Deutsche Bank believes that investors are attracted to Apple Inc. (NASDAQ:AAPL) due to the company’s strong financial performance, solid balance sheet, and stability in an uncertain economic climate.

According to Insider Monkey’s fourth quarter database, 135 hedge funds were bullish on Apple Inc. (NASDAQ:AAPL), compared to 140 funds in the earlier quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 895 million shares worth $116.30 million. 

Polen Global Growth Strategy made the following comment about Apple Inc. (NASDAQ:AAPL) in its Q1 2023 investor letter:

“Not owning Apple Inc. (NASDAQ:AAPL) and NVIDIA detracted from our relative performance. With respect to Apple, we have not felt that the combination of growth available and the valuation made for one of our best ideas. Concerning NVIDIA, while there seems to be strong demand for data center chips, the valuation and lack of clarity around pace and magnitude of that growth has kept us at bay to date.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 10 Best Beverage Stocks to Buy Now and 27 Largest Biotech Companies in the US.