With businesses and individuals increasingly embracing innovative solutions, the technology sector is thriving and creating new opportunities for companies in this space. Given the rapid digitization and the breakthrough of cutting-edge technologies, the demand for tech-related products and solutions remains robust.
Below, I have highlighted three reasons why these fundamentally sound tech stocks, Seiko Epson Corporation (SEKEY – Get Rating), Spirent Communications plc (SPMYY – Get Rating), and Daktronics, Inc. (DAKT – Get Rating), could be great buys now.
Firstly, the technology sector is booming, driven by hype around generative artificial intelligence applications and a robust demand for tech products and services. Companies in this space are experiencing fierce competition to grow and assert their dominance in the market. Moreover, they are pouring substantial resources into research and development to bring new and innovative producers to the market.
According to the latest forecast by Gartner, worldwide IT spending is expected to total $4.70 trillion this year, up 4.3% year-over-year. Also, the global IT hardware market is poised to grow at a 6.1% CAGR by 2027.
Secondly, digitalization and innovative technologies such as robotics, AI, cloud computing, IoT, and machine learning have given industries ample opportunities to streamline processes and enhance their offerings.
As Artificial intelligence (AI) continues to make a mark across various sectors, the application of AI in hardware devices or systems such as Graphics Processing Units (GPUs), AI Central Processing Units (CPUs), Tensor Processing Units (TPUs), and AI processors used in providing AI in hardware services, are expected to propel the market’s growth.
The global AI in hardware market is projected to expand at a CAGR of 23.3%, reaching $48.48 billion by 2027. Meanwhile, the global hardware market is expected to reach $164.21 billion by 2027, growing at a CAGR of 7.9%.
This rapid growth in the industry creates a promising landscape for companies to flourish and excel. Therefore, investing in quality tech stocks SEKEY, SPMYY, and DAKT could help reap significant returns. To top it off, these stocks have earned a ‘Strong Buy’ rating in our proprietary POWR Ratings system.
Let’s look at the featured stocks in more detail…
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