The hardware industry is one of the most promising industries you can invest in right now, and there is a good chance that many companies in this sector are going to deliver triple-digit gains this year. You can thank AI for that since it requires significant amounts of hardware and various types of electrical and industrial equipment.
Of course, the hardware industry is beyond just AI-related stocks. PC sales are forecasted to grow by 4% to 273 million units, while smartphone shipments are anticipated to reach 1.24 billion units. Robotics and the semiconductor sector are likely going to grow at double digits annually this decade on top of that.
With that in mind, here are the hardware stocks that are spearheading these gains so far in 2025, at least in percentage terms.
A close-up of a technician’s hands assembling a hardware component of an IT solution.
Methodology
For this article, I screened the top-performing hardware stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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).
15. Aviat Networks Inc (NASDAQ:AVNW)
Number of Hedge Fund Holders In Q3 2024: 14
Aviat Networks Inc (NASDAQ:AVNW) is a wireless transport and access company.
The stock is up significantly so far this year due to its record-breaking fiscal Q2 2025 results. The company posted 26.2% year-over-year revenue growth to $118.2 million. Adjusted EBITDA surged to $14.8 million compared to $12.1 million in Q2 2024.
Moreover, non-GAAP EPS of $0.82 beat expectations by 31%. This was its 18th consecutive quarter of trailing twelve-month revenue growth.
Plus, Aviat secured $35 million in quarterly orders for Pasolink microwave technology. It is now on track for a $140 million annual contribution from this strategic acquisition.
Aviat Networks expects full-year revenue at $430-$470 million, along with adjusted EBITDA of $30-$40 million.
The consensus price target of $37.6 implies 65.89% upside.
AVNW stock is up 23.91% year-to-date.
14. Franklin Wireless Corp (NASDAQ:FKWL)
Number of Hedge Fund Holders In Q3 2024: 3
Franklin Wireless Corp or Franklin Access (NASDAQ:FKWL) is an IoT company that provides products for 5G/4G mobile hotspots and other connectivity solutions for telecom and industrial uses.
The stock is up significantly so far this year as a federal jury awarded just $0.99 (yes, less than a dollar) in damages (vs. plaintiffs’ $110 million claim) in shareholder litigation.
In addition, it launched new products and shifted toward subscription-based services for its 100,000+ IoT and mobile subscribers, though financials haven’t been the best. It saw a 27% revenue decline in 2024.
FKWL stock is up 24.08% year-to-date.
13. OSI Systems Inc (NASDAQ:OSIS)
Number of Hedge Fund Holders In Q3 2024: 17
OSI Systems Inc (NASDAQ:OSIS) makes electronics for the healthcare sector.
The stock is up significantly so far this year due to the company reporting solid Q2 FY2025 earnings. OSI Systems reported $419.8 million in Q2 revenue (12% year-over-year growth) and non-GAAP EPS of $2.42, surpassing analyst expectations of $2.33.
It also increased its FY2025 revenue guidance to $1.685–$1.710 billion (up from $1.670–$1.695 billion) and non-GAAP EPS to $9.10–$9.40 (up from $9.00–$9.30).
OSI Systems won a $27 million security screening contract in January and an $11 million optoelectronics deal late last year. The backlog has an 85% visibility into fiscal 2025 revenue.
The consensus price target of $209.4 implies -0.32% downside.
OSIS stock is up 25.88% year-to-date.
12. EchoStar Corp (NASDAQ:SATS)
Number of Hedge Fund Holders In Q3 2024: 32
EchoStar Corp (NASDAQ:SATS) is a satellite communications company.
The stock is up significantly as it announced a merger with DISH Network.
Furthermore, EchoStar’s subsidiary Hughes Network Systems secured a $6.5 million contract from the U.S. Department of Defense to deploy a 5G Open Radio Access Network prototype at Fort Bliss.
There hasn’t been anything substantial, but the stock is still rising as a part of a broader recovery from earlier selloffs that started in 2018 and lasted for years. SATS stock is still down significantly from its peak.
The consensus price target of $23.75 implies 18.3% downside.
SATS stock is up 26.46% year-to-date.
11. Inseego Corp (NASDAQ:INSG)
Number of Hedge Fund Holders In Q3 2024: 11
Inseego Corp (NASDAQ:INSG) is a company that makes 5G and intelligent IoT device-to-cloud products.
The stock is up significantly so far in 2025 as analysts are optimistic about the company’s Q4 2024 results scheduled for release on February 19, 2025. Inseego’s 5G solutions generated solid revenue from telecom companies in 2023. Perhaps it could slow the projected decline in Q4.
Management expects a 20% sequential revenue decline for Q4 2024.
Plus, Executive Chairman Phil Brace stepped down in February 2025 to lead Skyworks Solutions, succeeded by Jeff Tuder as independent Chairman, though this hasn’t really added to the company’s recent rally. It is more of a recovery rally from the stock’s earlier plunge after Q3 results.
The consensus price target of $14.33 implies 9.62% upside.
INSG stock is up 27.88% year-to-date.
10. Stratasys Ltd (NASDAQ:SSYS)
Number of Hedge Fund Holders In Q3 2024: 12
Stratasys Ltd (NASDAQ:SSYS) is a 3D printing company.
The stock is up significantly so far this year after a $120 million equity investment from Fortissimo Capital. Fortissimo purchased 11.65 million newly issued shares at $10.30 per share. It plans to add a board seat and an 18-month lock-up period.
In addition, Stratasys reported preliminary Q4 revenue of $150.1–150.5 million, which is flat year-over-year but hardware-focused growth. For 2025, the company expects 8% EBITDA margins at current revenue levels. This marked the first concrete profitability roadmap since its cost-cutting initiatives began in 2023.
The consensus price target of $11.4 implies 4.4% downside.
SSYS stock is up 32.4% year-to-date.
9. Boxlight Corp (NASDAQ:BOXL)
Number of Hedge Fund Holders In Q3 2024: 1
Boxlight Corp (NASDAQ:BOXL) makes teaching products for classrooms.
The stock is up significantly so far this year, especially after Microsoft announced plans to invest approximately $80 billion in AI data centers and cloud-based applications. Despite minimal direct AI exposure, Boxlight is being grouped with small-cap “AI adjacency” plays. Analysts speculate Boxlight could benefit from spillover demand for educational AI tools.
Boxlight also slashed its net loss to $3.1 million in Q3 2024 (versus $17.8 million year-over-year) and achieved its first positive adjusted EBITDA of $2.2 million. Its operating expenses fell and it targets a $12–13 million quarterly run rate by late 2024.
Moreover, Boxlight announced on February 13, 2025, a 1-for-5 reverse split aims to regain Nasdaq compliance.
The consensus price target of $1.75 implies 232.07% upside.
BOXL stock is up 32.47% year-to-date.
8. Genasys Inc (NASDAQ:GNSS)
Number of Hedge Fund Holders In Q3 2024: 8
Genasys Inc (NASDAQ:GNSS) is a communications company for emergency alerts.
The stock is up significantly so far in 2025 as it beat Q1 2025 earnings expectations. It reported a smaller-than-expected loss of $0.09 per share vs. a forecasted loss of $0.16. Revenue grew 59.1% year-over-year to $6.9 million.
Net loss narrowed to $4.1 million from $6.7 million year-over-year.
Plus, gross profit margin improved sharply to 45.8% from 33.9% in the prior year and had a $40 million backlog.
Genasys had some major contract wins, which included a 4-year contract extension with Los Angeles County, a Maui Emergency Management Agency contract for EVAC and TRAFFIC AI, and a U.S. Bureau of Reclamation order for upgraded LRAD security systems at Hoover Dam.
The consensus price target of $5.33 implies 53.92% upside.
GNSS stock is up 36.92% year-to-date.
7. Adtran Holdings Inc (NASDAQ:ADTN)
Number of Hedge Fund Holders In Q3 2024: 20
Adtran Holdings Inc (NASDAQ:ADTN) is a networking and communications company.
The stock is up significantly so far this year as ADTRAN collaborated with BT Group on Europe’s first successful field trial of its Coherent 100ZR pluggable transceiver. It ended up achieving a record spectral efficiency of up to 6.5 bits/s/Hz and reduced energy consumption.
Also, investors are pricing in improved financials after the company reported a 56% year-over-year revenue growth in 2024. Many analysts have upped their price targets and institutional investors have bought in, especially as Buy America-compliant products make it a key beneficiary of the $42.5 billion BEAD program.
The consensus price target of $12.75 implies 8.33% upside.
ADTN stock is up 42.02% year-to-date.
6. 3D Systems Corp (NYSE:DDD)
Number of Hedge Fund Holders In Q3 2024: 21
3D Systems Corp (NYSE:DDD) has a pretty self-explanatory name. It is a company that makes 3D printers and other related products.
The stock is up significantly so far this year after 3D Systems announced the sale of its Geomagic software portfolio to Hexagon’s Manufacturing Intelligence Division for $123 million. This move allows the company to focus on its core software platforms.
Plus, its subsidiary won the prestigious SLAS 2025 Innovation Award for its h-VIOS platform.
3D Systems also secured a multi-year purchase agreement worth nearly $250 million to support indirect manufacturing processes for clear aligners.
The consensus price target of $3.25 implies 31.49% downside.
DDD stock is up 42.38% year-to-date.
5. AST SpaceMobile Inc (NASDAQ:ASTS)
Number of Hedge Fund Holders In Q3 2024: 18
AST SpaceMobile Inc (NASDAQ:ASTS) is a space 5G company. It wants to make 5G satellite connections possible to preexisting phones.
The stock is up significantly so far in 2025 as AST SpaceMobile announced that it could achieve break-even cash flow with just 20 satellites, instead of the previously estimated 45-60.
An advertisement aired during the February 9, 2025, Super Bowl showcased AST SpaceMobile’s tech and improved investor sentiment. Analysts forecast nearly $5 billion in 2030 revenue.
In January, AST SpaceMobile closed a $460 million private offering of convertible senior notes due in 2032.
The consensus price target of $40.04 implies 33.05% upside.
ASTS stock is up 42.42% year-to-date.
4. Focus Universal Inc (NASDAQ:FCUV)
Number of Hedge Fund Holders In Q3 2024: 3
Focus Universal Inc (NASDAQ:FCUV) makes IoT and 5G technologies.
The stock is up so much so far in 2025 after the company’s announcement and execution of a 1-for-10 reverse stock split, effective January 31, 2025. In addition, the company showed its products at the CES 2025 in January and made investors more optimistic.
Regardless, the recent rally is more of a recovery as the stock is down almost 50% from its January 2025 highs.
FCUV stock is up 44% year-to-date.
3. BlackSky Technology Inc (NYSE:BKSY)
Number of Hedge Fund Holders In Q3 2024: 7
BlackSky Technology Inc (NYSE:BKSY) is a geospatial intelligence company. It uses satellites and analytics.
The stock is up significantly so far in 2025 due to BlackSky announcing eight-figure multi-year contracts to accelerate India’s Earth observation.
It also shipped its first Gen-3 satellite (35 cm resolution) to Rocket Lab for a February 2025 launch and secured a seven-year, $100 million+ contract with an international defense partner for Gen-2 and Gen-3 services, alongside a $200 million Luno B contract from the National Geospatial-Intelligence Agency.
Plus, the U.S. government extended its Electro-Optical Commercial Layer (EOCL) contract with the National Reconnaissance Office through mid-2026.
The consensus price target of $19.2 implies 9.25% upside.
BKSY stock is up 64.6% year-to-date.
2. Corsair Gaming Inc (NASDAQ:CRSR)
Number of Hedge Fund Holders In Q3 2024: 5
Corsair Gaming Inc (NASDAQ:CRSR) makes PC components.
The stock is up significantly so far this year as it upgraded its 2025 financial guidance. Corsair sees its revenue between $1.4 billion and $1.6 billion (up from $1.32 billion in 2024) and adjusted EBITDA of $80–$100 million (a 60% increase at the midpoint).
Q4 2024 earnings also beat, despite revenue dipping slightly year-over-year to $413.6 million. The Gamer and Creator Peripherals segment grew 24% year-over-year to $169.6 million. Also, adjusted EBITDA of $33.1 million met expectations.
Corsair now expects demand for gaming PCs and Nvidia GPUs to surge, which should help it.
The consensus price target of $10.14 implies 18.52% downside.
CRSR stock is up 89.26% year-to-date.
1. AXIL Brands Inc (NYSEAMERICAN:AXIL)
Number of Hedge Fund Holders In Q3 2024: N/A
AXIL Brands Inc (NYSEAMERICAN:AXIL) is an e-commerce consumer products company.
The stock has delivered stellar returns so far this year after its MX Series launch drove immediate investor enthusiasm. It debuted at the Daytona 500 and this amplified visibility among NASCAR’s 10 million+ annual attendees.
Furthermore, it expanded into 1,000+ retail locations, including Bass Pro Shops, Scheel’s, and Walmart, with plans to grow this footprint tenfold. It also secured European distribution via Terrang MP-Sec France and Beretta Hellas LTD.
AXIL stock is up 102.59% year-to-date.
While we acknowledge the potential of AXIL as an investment, our conviction lies in the belief that some 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 AXIL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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