We recently published a list of 10 Best Hardware Stocks To Buy Now. In this article, we are going to take a look at where Super Micro Computer, Inc. (NASDAQ:SMCI) stands against other best hardware stocks to buy now.
Are the Tariffs Impacting PC Shipments?
The computer hardware industry comprises personal computers, PC peripherals, storage devices, and servers for the high-growth data center industry. According to a report by The Business Research Company, the computer hardware industry was valued at $714.8 billion in 2024 and is expected to grow at a compound annual growth rate of 6.5% to reach $761 billion by 2025. The market is expected to expand further at a CAGR of 6.3% to reach $972 billion by 2029 eventually. The historic growth factors including the globalization of the supply chain, the rise of the internet, and the revolution in personal computing are still valid. It has been further boosted by the latest trends such as edge and quantum computing, the rise of AI and data centers, and hybrid and multi-cloud environments.
The global PC market is one of the largest components of the hardware industry. According to a January 9 report by IDC, the PC shipments grew 1.8% during Q4 of 2024, with global volumes reaching 68.9 million. Jitesh Ubrani, a research manager at IDC Worldwide Mobile Device Trackers noted that overall the market is experiencing slower growth, however, the fourth quarter was aided by the Chinese government subsidies. The report also pointed out increased concern regarding the increased threats of new tariffs back in January 2025, noting that many brands experienced pull-ins during December as a preventive measure to get ahead of the tariffs.
However, a more recent report published by IDC on April 8, revealed that the PC shipment market remained unaffected by the tariffs as the shipments grew by 4.9% during the first quarter of 2025. Jean Philippe Bouchard, research vice-president with IDC’s Worldwide Mobile Device Trackers noted that these increased shipments were largely a result of the entire ecosystem trying to accelerate the deliveries to avoid the first round of tariffs. He noted that although the market remained largely unaffected by the first round, however, the second round announced on April 2 could lead to an inflationary impact, thereby negatively impacting the shipments in the following quarters.
Our Methodology
To curate the list of the 10 best hardware stocks to buy now, we used the Finviz stock screener and Insider Monkey’s Q4 2024 hedge funds database. Firstly, we aggregated a list of computer hardware stocks using the screener and sorted the list by market capitalization. Next, we ranked these stocks in ascending order of the number of hedge fund holders.
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).
A team of technicians in a server room, testing and managing the newest server solutions.
Super Micro Computer, Inc. (NASDAQ:SMCI)
Number of Hedge Fund Holders: 45
Super Micro Computer, Inc. (NASDAQ:SMCI) is a technology company that provides high-performance computing, storage, networking solutions, and green computing technology. Its key offerings include hardware solutions, rack-scale solutions, software, and green technologies. The company is known for its SuperBlade, MicroBlade, and SuperStorage technologies.
On April 3, Super Micro Computer, Inc. (NASDAQ:SMCI) announced the industry’s first NVIDIA HGX B200 systems, which demonstrated robust AI performance as per the MLPerf Inference v5.0 benchmarks. The systems delivered more than 3 times the token generation per second in comparison to the previous systems. Moreover, the company released its preliminary second-quarter results for fiscal 2025. Super Micro Computer, Inc. (NASDAQ:SMCI) expects net sales within the range of $5.6 billion to $5.7 billion, indicating a 54% increase year-over-year. Management anticipates maintaining its leadership in direct-liquid-cooling technology with over 30% of data centers expected to adopt the technology over the next 12 months. It is one of the best hardware stocks to buy now.
Overall, SMCI ranks 6th on our list of best hardware stocks to buy now. While we acknowledge the potential of SMCI 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SMCI 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.
Disclosure: None. This article is originally published at Insider Monkey.
