In this article, we will look at some of the best electronic equipment stocks favored by hedge funds. On March 11, S&P Global Market Intelligence issued a detailed review on the future of the electronics supply chain. Specifically, it covered the problems that exist regarding the inability of memory chips to satisfy demand amid the competition for AI dominance worldwide. It was quite interesting to read from an investment standpoint.
To sum up, there are clear memory chip shortages on the market due to increased demand from South Korea, mainland China, Japan, and Taiwan. As a result, there was a huge 42% rise in prices for South Korean memory chip exports in the recent month. The firm stated:
“The World Consumer Electronics Purchasing Managers’ Index showed that although the new orders index declined to 46.9 in December, its lowest point since February 2024, manufacturing of industrial electronics improved to 50.0 because of increased defense sector investment.”
However, S&P Global made it clear that despite an increased interest in the market from the supply side, with chip manufacturers investing in memory chip production, volume will only pick up from 2027 onwards. It is pivotal for investors to note that there are acute shortages of memory chips, particularly for DRAM, which can limit the development of AI and pose risks to business profits.
In this situation, determining which electronics firms can cope with memory shortages and price pressure becomes more important than ever before. With that background, let’s explore our 7 Best Electronic Equipment Stocks to Buy According to Hedge Funds.
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Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed electronic equipment companies with market capitalizations above $2 billion. Next, we identified the number of hedge funds that held positions in these stocks at the end of the fourth quarter of 2025. Finally, we selected 7 stocks with the highest number of hedge funds holding stakes and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
7. Mirion Technologies Inc. (NYSE:MIR)
Mirion Technologies Inc. (NYSE:MIR) is one of the 7 best electronic equipment stocks to buy according to hedge funds.
On April 7, Goldman Sachs reduced the price target on Mirion Technologies Inc. from $29 to $28 while reaffirming a Buy rating on the stock. This results in a revised upside potential of more than 45% at the prevailing level.
This downward revision comes on the back of a comprehensive research preview of earnings for the first quarter, covering various sectors. According to the firm, it plans to revise the segment-level forecasts with an assumption of a reduced interest rate scenario starting in 2026 and onwards.
On March 30, Quinn Fredrickson from Baird decreased the price target on Mirion Technologies Inc. from $29 to $26 while maintaining an Outperform rating. According to Fredrickson, the overarching advanced industrial technology group has little exposure to the Middle East.
Furthermore, underlying cyclical indicators consistently suggest that both 2026 and 2027 are expected to see sustained improvement. The analyst also highlighted the recent bearish trend in the market, which he views as an attractive entry point.
Mirion Technologies Inc. offers devices and services for radiation detection, control, measurement, and evaluation. It provides a number of solutions that include dosimetry, patient safety, radionuclide therapy products, and more. Additionally, it provides technologies for scientific and laboratory analysis.
6. Itron Inc. (NASDAQ:ITRI)
Itron Inc. (NASDAQ:ITRI) is one of the 7 best electronic equipment stocks to buy according to hedge funds.
As of the April 10 close, Itron Inc. had a strongly bullish consensus sentiment. The stock received coverage from 7 analysts, 6 of whom assigned Buy ratings and 1 gave a Hold call. With no Sell rating, the stock has a projected median 1-year price target of $135.50, which leads to an upside potential of more than 43%.
On March 6, Needham set a price target of $124 for Itron Inc. and assigned it a Buy rating. This yields an upside potential of more than 31% at the current level.
This rating is based on the company’s structural strength across the smart metering sector covering North America. According to the firm, the enterprise commands 64% of network endpoints and 35% of the installed base.
The company is in the midst of a multi-year Advanced Metering Infrastructure 2.0 replacement cycle. Even though immediate organic growth seems small, the firm points to the extended margin goal reset and cross-selling into the present client base as significant drivers that are not yet reflected in consensus estimates.
Itron Inc. operates as a tech-based company offering a range of complete solutions to manage water, energy, and smart city functions. Its product portfolio includes communication devices, hardware, and various software products. It also provides analytical services to its clients through statistical modeling, AI, and machine learning.
5. Ralliant Corp. (NYSE:RAL)
Ralliant Corp. (NYSE:RAL) is one of the 7 best electronic equipment stocks to buy according to hedge funds.
On March 5, Julian Mitchell from Barclays highlighted Ralliant Corp. as one of the hardware companies engaged in in-plant manufacturing equipment, which is indirectly exposed to potential AI-related threats.
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The analyst said that the firm received a lot of questions from investors, based on the Wall Street Journal report on how the former Chief Research Officer of OpenAI, Bob McGrew, is raising $70 million for a new startup called Arda. The startup, which is valued at around $700 million, seeks to use artificial intelligence to automate manufacturing using software.
Although there have been many questions about how software is exposed to artificial intelligence disruption, the company believes that the higher-margin hardware segment should be more concerning to investors.
Mitchell noted that the exposure could either be direct or indirect. Direct exposure covers manufacturing software names, while the indirect exposure would lead to disruption across the high-margin hardware segment.
Despite these fears, Ralliant Corp. carries a moderately bullish consensus sentiment as of April 10 closing. The stock has received Buy ratings from 7 of the 10 analysts, along with 2 Hold calls and 1 Sell rating.
Ralliant Corp. is engaged in delivering services for engineered items, precision instruments, and technological solutions under a portfolio of brands. It also provides several safety solutions, including safety systems for mission-critical defense and space applications, hygienic sensors, and more.
4. Zebra Technologies Corp. (NASDAQ:ZBRA)
Zebra Technologies Corp. (NASDAQ:ZBRA) is one of the 7 best electronic equipment stocks to buy according to hedge funds.
On April 10, Zebra Technologies Corp. entered into a partnership with Aiva Health, which will leverage Aiva’s AI-enabled Nurse Assistant to facilitate hands-free nurse work streams through Zebra’s purpose-built healthcare devices. These devices include the company’s latest WS101-H badges and the HC20/HC50 mobile computers.
This partnership aims to help nurses working across healthcare organizations through voice-first assistants that are highly compatible with Zebra devices. This would ensure seamless patient care while clinicians carry out other administrative tasks, such as information retrieval and communications.
The strategic move is a practical demonstration of Zebra’s “Orchestrated Care” framework, which carries a vision for healthcare service providers to optimize their functions and make their teams more self-sufficient.
Earlier on March 30, Quinn Fredrickson from Baird Securities reiterated his Outperform rating for Zebra Technologies Corp.. The analyst, however, reduced the stock’s target price from $350 to $300, which still leads to an adjusted upside potential of more than 25%.
Zebra Technologies Corp. works in the field of data automatic identification and capture technology. It develops and produces printers for intelligent labeling and printing through RFID technology. Its portfolio also includes barcode scanners and imagers, workflow optimization solutions, cloud-based software, and more.
3. Cognex Corp. (NASDAQ:CGNX)
Cognex Corp. (NASDAQ:CGNX) is one of the 7 best electronic equipment stocks to buy according to hedge funds.
On April 7, Goldman Sachs maintained a Buy rating on Cognex Corp.. The firm also increased its target price for the stock from $68 to $70, yielding a revised upside potential of more than 31%.
The firm reflected on the company’s plans to curtail its annual operating costs by around $35-$40 million, noting that the market has yet to price in the financial impact of such measures. It emphasized how this will lead to earnings momentum for the company, given there are no unplanned disruptions across the end markets.
Back on March 2, Cognex Corp. appeared at the 47th Annual Raymond James Institutional Investor Conference, with its president and CEO, Matt Moschner, outlining the firm’s strategies and market positioning. Moschner described Cognex as the global leader in industrial machine vision technology, adding that the firm had just fallen short of $1 billion in revenues to close fiscal year 2025, earning $994 million.
The presentation outlined three strategic initiatives for the company. The first one involves making investments to become a leader in artificial intelligence technology within the industrial machine vision space. Next is to become the most customer-friendly and enjoyable company to work with by enhancing the entire customer journey. Finally, the management intends to expand the client base from about 30,000 to 40,000 clients, and to 2x this number within five years.
Cognex Corp. sells machine vision devices that automate production and distribution activities by capturing and analyzing visual data. Its portfolio has several products, including software for advanced programming, technology for developing vision applications, and an image-based barcode reader.
2. Keysight Technologies Inc. (NYSE:KEYS)
Keysight Technologies Inc. (NYSE:KEYS) is one of the 7 best electronic equipment stocks to buy according to hedge funds.
As of the April 10 close, consensus sentiment around Keysight Technologies Inc. remained strongly bullish. The stock was assigned Buy ratings by 9 of the 11 analysts who provided coverage, along with 2 Hold calls.
On March 30, Baird maintained an Outperform rating for Keysight Technologies Inc.. The firm also increased the price target on the stock from $295 to $310. This upward revision is backed by the recent pullback in stocks, which appears to be a strategic buying opportunity.
According to the firm, the company is highly positive on the advanced industrial technology group because of the industry’s limited exposure to the Middle East. Furthermore, underlying cyclical indications consistently suggest that operations will continue to improve in 2026 and 2027.
Back on March 12, Keysight Technologies Inc. announced its strategic partnership with Salience Labs for building the world’s first optical circuit switch testing system. The testing solution will be demonstrated using the Salience Labs product range. It is scheduled to take place from March 17 to 19 at the OFC 2026 in Los Angeles.
Keysight Technologies Inc. offers electronic test and design products worldwide. It serves several sectors, including defense, aerospace, data centers, and independent and government organizations. It offers diverse services, which include applications to support both software and hardware, software testing, financial solutions, and more.
1. Teledyne Technologies Inc. (NYSE:TDY)
Teledyne Technologies Inc. (NYSE:TDY) is one of the 7 best electronic equipment stocks to buy according to hedge funds.
On April 7, Teledyne Technologies Inc. FLIR OEM launched an upgrade of Prism SKR that marks a significant change in this software from being an automated targeting solution to a comprehensive, closed-loop autonomy solution. This breakthrough upgrade establishes a new benchmark within the defense industry where task execution and intelligent control are integrated within one platform. This controls guided weapon systems such as smart loitering munitions, air-launched effects, counter-UAS systems, attritables, interceptors, and first-person view drones.
The upgraded Prism SKR from Teledyne FLIR OEM controls the whole process flow from tasking to execution through perception-based automatic target recognition and autonomy.
On March 31, Teledyne Technologies Inc. announced that its marine division signed a direct contract with the UK’s Ministry of Defense. This strategic collaboration explicitly supports the Royal Navy’s Future Maritime Data Gathering and Persistent Oceanographic Data Collect projects.
Through this agreement, the company will provide a variety of autonomous ocean monitoring equipment, including APEX floats, Sentinel gliders, and Slocum gliders, along with the necessary support services. Adding these technologies will enable maritime forces to expand the number of unmanned vessels that are already being used to collect premium environmental data.
Consequently, the infrastructure that has been placed in the Atlantic Bastion helps conduct focused defense operations, provide marine safety, and aid in overall operational planning.
Teledyne Technologies Inc. sells technology that facilitates industrial development markets by providing them with a range of products in the digital imaging category. This category includes ultraviolet, visible, and X-ray products, to name a few. It also offers electronic and optical components, production solutions for defense, aviation batteries, and more.
