In this article, we will take a look at the best hardware stocks to buy according to analysts.
With rising demand for cloud infrastructure, AI, and data centers, the market is favoring sectors once considered cyclical. According to the November 24, 2025, report by Market Reports World, the global IT hardware market size was valued at approximately $475.36 billion in 2024 and is expected to reach $726.52 billion by 2033. This translates to a compound annual growth rate (CAGR) of 4.83%.
The research finds that edge computing and AI-integrated hardware are becoming more attractive, with the adoption of AI chips in servers rising by an impressive 47%. Not only that, cloud-based hardware upgrades have surged recently, with enterprise-level hardware modernization initiatives reporting a 51% global growth rate.
Since the COVID-19 pandemic, many organizations have shifted to a work-from-home or hybrid model. Indeed, this has made IT very popular among both employees and employers. The research report expects this trend to continue, supporting demand for home office hardware and other commercial equipment needed for teamwork and collaboration. Another trend this research highlights is AI and machine learning, which are reshaping how IT hardware operates. IT hardware production is led by the Asia-Pacific region, which accounts for approximately 54% of global volume, with China, Japan, and South Korea as major players.
With this backdrop, let’s explore our list of the best hardware stocks to buy according to analysts. These stocks belong to a handful of hardware-related industries within the technology sector.
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Our methodology
For this article, we have considered the companies in the Communication Equipment, Computer Hardware, Consumer Electronics, Electronic Components, and Electronic and Computer Distribution industries within the Technology sector. From these stocks, we have selected those with a market capitalisation of more than $1 billion and upside potential of at least 20%. We then shortlisted the seven companies with the highest upside potential and ranked them in ascending order. We also included data on hedge fund holdings in these companies based on Insider Monkey’s database, as of Q3 2025.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
7. IonQ, Inc. (NYSE:IONQ)
Upside Potential as of December 8, 2025: 32.36%
Number of Hedge Fund Holders: 30
On December 8, IonQ, Inc. (NYSE:IONQ) announced the deployment of Slovakia’s pioneer quantum communication network, developed in partnership with the Institute of Physics, Slovak Academy of Sciences (IPSAS). This advanced system, built on a strong hybrid architecture, will positively contribute to the national cybersecurity infrastructure and support Europe’s quantum digital initiatives.
The Slovak Quantum Communication Infrastructure (skQCI) project strengthens Slovakia’s contribution to the European Quantum Communication Infrastructure (EuroQCI) program. This initiative marks a key milestone in building a secure quantum-resistant communication backbone for all European Union (EU) member states and territories.
As stated by Niccolo de Masi, CEO of IonQ, Inc. (NYSE:IONQ),
“By combining IonQ’s quantum-safe networking capabilities with the scientific leadership of the Slovak Academy of Sciences, we are building a secure, resilient, and state-of-the-art quantum communication network that can serve as a model for Europe.”
The Slovak Quantum Communication Infrastructure project ties together several metropolitan and remote sites through a quantum key distribution architecture. The network employs a hybrid system integrating quantum key distribution and post-quantum cryptography.
Earlier on December 1, IonQ Inc. (NYSE:IONQ) disclosed its investment partnership with the Centre for Commercialization of Regenerative Medicine (CCRM) to power next-generation therapeutic development, utilising cutting-edge hybrid quantum and quantum-AI technologies.
IonQ, Inc. (NYSE:IONQ) is a Maryland-based developer of quantum computers and networks. Founded in 2015, the company specializes in quantum-safe networking and quantum detection systems.
6. Zebra Technologies Corporation (NASDAQ:ZBRA)
Upside Potential as of December 8, 2025: 34.80%
Number of Hedge Fund Holders: 53
As of December 8, Zebra Technologies Corporation (NASDAQ:ZBRA) has a rating of ‘Buy’ or equivalent from 70% of the analysts covering the stock. With a median price target of $355, the stock has about 35% upside from the current price.
On December 5, Piyush Avasthy, an analyst at Citi, reaffirmed the ‘Hold’ rating on Zebra Technologies Corporation (NASDAQ:ZBRA), while setting a price target of $311, which suggests a potential upside of nearly 18%.
During the company’s presentation at the Stephens Annual Investment Conference on November 18, management had highlighted strategic vision in this volatile macroeconomic environment. The conference, featuring CFO Nathan Winters, covered growth opportunities and regional pressures.
With a focus on digitalization and automation of frontline operations, Zebra Technologies Corporation (NASDAQ:ZBRA) remains well-positioned in North America and Asia-Pacific, but lags in Europe. Amid current market volatility, the company aims for 6% organic growth and 17% EPS growth for the year. The core initiatives the company has adopted include share buybacks, the ELO acquisition, and the acceleration of RFID and machine vision technologies.
As stated by the CFO,
“We’ve deployed $300 million of share buyback through the year and committed to another $500 million over the next 12 months. I think adding the ELO acquisition gives us a scaled $400 million of revenue that’s accretive on day one. We feel good about the execution in the year.”
Zebra Technologies Corporation (NASDAQ:ZBRA) is an Illinois-based enterprise asset intelligence solutions company operating through two segments: Asset Intelligence & Tracking, and Enterprise Visibility & Mobility. Founded in 1969, the company serves the automatic identification and data capture solutions industry.
