Rising interest rates, multi-decade high inflation, and economic uncertainty sent tech stocks tumbling last year. But the technology sector has been on a roll in 2023, with the Nasdaq Composite up approximately 31.3% year-to-date. Tech stocks have been buoyed by major breakthroughs in generative AI, led by OpenAI’s ChatGPT chatbot and the promise of a new era of growth for the sector.
Amid rising optimism in the sector, fundamentally sound tech stocks Panasonic Holdings Corporation (PCRFY – Get Rating), TransAct Technologies Incorporated (TACT – Get Rating), and Daktronics, Inc. (DAKT – Get Rating) could be ideal investments now for potential gains.
After robust growth through the COVID-19 pandemic, as consumers and enterprises purchased new hardware devices, demand weakened in 2022, with global PC shipments dropping by more than 15%. During the first quarter of 2023, a decline of 30% was recorded, mainly attributed to the economic slowdown.
Despite macroeconomic headwinds, the tech hardware industry is well-poised to experience considerable growth and expansion in the long run, driven by rapid digital transformation worldwide. With businesses digitizing their operations, growing spending on data center infrastructure, networking infrastructure, and cloud set-up propel the hardware industry’s growth.
As per a report by Research and Markets, the global hardware market is expected to grow from $111.44 billion in 2022 to $121.34 billion in 2023 at a CAGR of 8.9%. In addition, the market is projected to reach $164.21 billion by 2027, growing at a 7.9% CAGR.
Furthermore, the growing adoption of emerging technologies, including artificial intelligence (AI), the Internet of Things (IoT), machine learning (ML), augmented reality (AR), virtual reality (VR), and the metaverse, should boost the hardware industry’s prospects.
For instance, specialized hardware is usually used to execute AI applications faster and more effectively, including high-performance computing (HPC) systems, graphics processing units (GPUs), central processing units (CPUs), data storage systems like solid-state drives (SSDs), and hard disk drives (HDDs), and networking infrastructure such as routers and switches.
According to ReportLinker, the global AI in hardware market is…
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