As the widespread adoption of digital technologies has been a boon for many industries, the tech sector is thriving, with rapid digitization and the emergence of cutting-edge technologies, the demand for specialized hardware solutions is soaring.
Given the robustness, I believe fundamentally sound tech stocks, Apple Inc. (AAPL – Get Rating), Dell Technologies Inc. (DELL – Get Rating), and Quantum Corporation (QMCO – Get Rating), should be a part of every investor’s watchlist.
Before delving into a detailed comparison of the fundamentals of the featured stocks, let’s first see what’s happening in the technology hardware industry.
The computer hardware segment is a fast and ever-evolving market with several globally recognized players. Furthermore, the global hardware market is projected to reach $164.21 billion by 2027, growing at a CAGR of 7.9%.
On the flip side, there is increasing competition coupled with colossal spending by the firms on research and development for introducing new and innovative products in the market.
Disruptions in the supply chain, negative impacts on the workforce, and ever-increasing demands brought about by the transition to a new way of life have resulted in businesses in the entire electronics value chain evaluating and modifying their operations.
The proliferation of digital technologies has created many opportunities for industries to streamline processes and improve offerings. In order to stay competitive, hardware companies must keep up with innovative technologies to attract consumers.
As Artificial intelligence (AI) continues to proliferate across numerous sectors, the demand for associated hardware is expected to grow. The global artificial intelligence in hardware market size is projected to surpass $89.22 billion by 2030, growing at a CAGR of 27%.
Furthermore, the global IT hardware market is expected to grow at a CAGR of 6.1% between 2022 and 2027. The anticipated robust demand for specialized and high-quality hardware can be attributed to the intensifying reliance on digital devices.
Given this backdrop, it could be wise to keep an eye on fundamentally robust stocks like AAPL, DELL, and QMCO that are well-positioned to offer significant returns. Let’s take a detailed view of these stocks.
Apple Inc. (AAPL – Get Rating)
Tech giant AAPL designs, manufactures, markets smartphones, personal computers, tablets, wearables, and accessories and sells various related services. Its product offerings include iPhone, Mac, AirPods Max, iPad, Apple TV, Apple Watch, HomePod, and accessories.
On June 21, AAPL launched the visionOS software development kit to enable its developer community to bring more smoothness to its app user experience. This new feature would allow users to interact with digital content in their physical space using natural and intuitive inputs.
This innovation should enable users to utilize the kit’s powerful and unique capabilities to improve their productivity, design, and gaming experience.
On June 5, the company unveiled Apple Vision Pro, a revolutionary spatial computer that actively integrates digital content with the physical world, propelling innovation to unprecedented levels.
Experts assert that the device has the potential to surpass other virtual reality headsets in terms of market penetration, despite its significantly high price tag. This can be attributed to AAPL’s exceptional design, unwavering brand loyalty, and cutting-edge technology.
Moreover, in the same month, the company made further strides in expanding its product lineup. It also unveiled a bigger MacBook Air laptop alongside high-end desktops tailored for 3D designers and programmers. The company also revealed major updates to iPhone, iPad, and Apple Watch operating systems.
AAPL pays an annual dividend of $0.96, which translates to a dividend yield of 0.50%. Its four-year average yield is 0.73%. The company’s dividend payouts have grown at CAGRs of 5.9% and 7.3% over the past three and five years, respectively. Also, it has a record of nine years of consecutive dividend growth.
