Top 5 Tech Hardware Stocks Poised for Exceptional Growth: MarketWatch Insights
Discover the powerful yet often overlooked high-tech hardware sub-sector driving significant market gains.
While the spotlight often shines on cutting-edge tech sectors like artificial intelligence (AI), cloud computing, autonomous vehicles, and virtual reality, a quieter but equally impactful segment of the technology industry is primed for substantial growth. MarketWatch recently identified five standout hardware stocks to watch in 2018, emphasizing the strength of this essential yet understated sub-sector. (Also see: Chip Stocks on the Brink of Major Breakthrough: Todd Gordon.)
Despite the allure of emerging tech trends, MarketWatch’s Jeff Reeves draws attention to the "modest yet robust high-tech hardware sub-sector," which has consistently delivered impressive performance. This group, consisting of companies specializing in chips, semiconductors, and related components, includes Advanced Micro Devices Inc. (AMD), Micron Technology Inc. (MU), Seagate Technology PLC (STX), NVIDIA Corp. (NVDA), and Pure Storage Inc. (PSTG).
Seagate Technology
Reeves highlights Seagate, a Cupertino-based data storage leader, as a prime example of a stock that defies skeptics. Often dismissed as a high-yield value trap, Seagate has proven its resilience. Despite a recent downgrade from Goldman Sachs due to cyclical trends favoring newer hardware and cloud solutions, Seagate’s shares rebounded strongly following impressive earnings that surpassed expectations on both revenue and profit fronts.
Seagate’s stock, featuring a 4.5% dividend yield, experienced a slight 4.2% dip on Thursday morning but boasts a robust 28.3% year-to-date increase.
Pure Storage
Pure Storage, though less widely known, has been spotlighted by Barron’s as a key player capitalizing on high-growth sectors like AI and autonomous vehicles. The company enhances the hardware infrastructure that enables complex, data-intensive processes to operate efficiently. Reeves also notes Pure Storage’s strategic partnership with chipmaker NVIDIA to integrate AI solutions into enterprise environments.
Pure Storage shares have surged 68.2% year-to-date, fueled by the company’s recent profitable quarter that exceeded Wall Street’s expectations. The firm achieved record margins and an impressive 37% revenue growth. (See also: Two Chipmakers Worth Buying on Market Dips: Paul Meeks.)
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