Despite facing a setback owing to several macroeconomic factors last year, the tech industry made a robust recovery propelled by powerful megatrends such as the Internet of Things (IoT), Artificial Intelligence (AI), and 5G connectivity.
In light of such megatrends, it could be an opportune time to load up the shares of four fundamentally sound tech stocks: Spirent Communications plc (SPMYY – Get Rating), TransAct Technologies Incorporated (TACT – Get Rating), Panasonic Holdings Corporation (PCRFY – Get Rating) and Daktronics, Inc. (DAKT – Get Rating), that look bound to make profits.
But before diving into the stock fundamentals, let’s first explore the industry landscape.
The technology hardware industry’s ascent is primarily fueled by the increasing adoption of cutting-edge technologies. The rise of Artificial Intelligence (AI) and machine learning, in particular, have ignited a substantial demand for intricately specialized hardware components.
The global AI in hardware market is projected to hit $20.88 billion in 2023, growing at a CAGR of 24.1%, and is poised to reach a value of $48.18 billion by 2027, showcasing a CAGR of 23.3%.
Furthermore, IoT technology continues to bolster enterprise digital transformation, sparking substantial demand for interconnected hardware, including sensors, processors, and wireless solutions. As per a Mordor Intelligence report, the IoT devices market is projected to grow at a CAGR of 23.3% and reach $336.64 billion by 2028.
According to research and markets, the global hardware market expanded from $111.44 billion in 2022 to $121.34 billion in 2023, exhibiting an impressive CAGR of 8.9%. This upward trajectory is projected to continue as the hardware market is forecasted to reach $164.21 billion in 2027, with a CAGR of 7.9%.
With these positive prospects in mind, let’s now dissect each of the four stocks given above from the B-rated Technology – Hardware industry, starting with…
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