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.
5. Extreme Networks, Inc. (NASDAQ:EXTR)
Upside Potential as of December 8, 2025: 35.14%
Number of Hedge Fund Holders: 38
As of December 8, Extreme Networks, Inc. (NASDAQ:EXTR) is a consensus ‘Buy,’ with 88% of analysts covering the stock assigning it a ‘Buy’ or equivalent rating. While the target price ranges from $21 to $26, the median price target of $24.50 suggests an upside potential of nearly 35%.
As reported by TheFly, Tomer Zilberman, an analyst at BofA, initiated coverage of Extreme Networks, Inc. (NASDAQ:EXTR) with a ‘Buy’ rating and a $24 price target on November 19. The firm bases this upside potential of about 34% on several growth catalysts, including campus network refresh and modernization projects, the WiFi-7 upgrade cycle, and rising adoption of cloud- and SaaS-based products. The analyst believes these drivers could push the company’s performance above market expectations.
The price target is based on 17 times the company’s CY2027 forecasted EPS, which represents a discount relative to peers. BofA Securities attributes this to the narrower operating scale and stronger exposure to budget-sensitive market verticals.
Other leading analysts also support this overall positive outlook. Earlier on November 11, Lake Street analyst Eric Martinuzzi reaffirmed the ‘Buy’ rating on Extreme Networks, Inc. (NASDAQ:EXTR), with a price target of $24. On the same day, Michael Genovese from Rosenblatt Securities maintained a ‘Buy’ rating and $25 price target on the stock.
Extreme Networks, Inc. (NASDAQ:EXTR) is a North Carolina-based company specializing in infrastructure equipment and related software. Incorporated in 1996, the company offers ExtremeCloud IQ, ExtremeCloud IQ-Site Engine, and ExtremeCloud IQ Essentials, among others.
4. Motorola Solutions, Inc. (NYSE:MSI)
Upside Potential as of December 8, 2025: 37.26%
Number of Hedge Fund Holders: 51
As of December 8, Motorola Solutions, Inc. (NYSE: MSI) is a consensus Buy, with the majority of analysts covering the stock assigning it a ‘Buy’ or equivalent rating. With a one-year median price target of $510, the stock offers nearly 36% upside. Keeping in mind this bullish outlook, Louie DiPalma, an analyst at William Blair, maintained a ‘Buy’ rating on November 21.
On the same day, Tomer Zilberman from Bank of America Securities also reaffirmed the ‘Buy’ rating on Motorola Solutions, Inc. (NYSE:MSI), citing a number of reasons. According to the analyst, the company has a solid market position and has the potential for further growth. Although the stock has lagged behind the broader market, Zilberman highlighted the company’s strong foothold and rising demand opportunities.
What’s even more notable is that Motorola Solutions, Inc. (NYSE:MSI) is poised to benefit from government initiatives, mainly in customs and border defense spaces, the analyst noted, adding that this will meaningfully reflect in the coming quarters.
Zilberman attributes his confidence in Motorola Solutions, Inc. (NYSE:MSI) to the Silvus acquisition, the adoption of new product lines, and a favorable valuation. He notes that although the Land Mobile Radio (LMR) segment has experienced declining growth, underlying demand remains strong, with orders up more than 10%.
Motorola Solutions, Inc. (NYSE:MSI) is an Illinois-based provider of public safety and enterprise security solutions. Founded in 1928, the company operates through two segments: Products and Systems Integration, and Software and Services.
3. Insight Enterprises, Inc. (NASDAQ:NSIT)
Upside Potential as of December 8, 2025: 38.89%
Number of Hedge Fund Holders: 19
As of December 8, consensus reflects a cautious outlook for Insight Enterprises, Inc. (NASDAQ:NSIT) as 60% of the analysts covering the stock have assigned it a‘Hold’ or equivalent rating. That said, the consensus 1-year median price target of $117 implies a potential upside of 38.89%.
According to TheFly, Luke Morison from Canaccord began coverage of Insight Enterprises, Inc. (NASDAQ:NSIT) on November 19, assigning a ‘Hold’ rating and a $100 price target, implying nearly 18% upside from the current price.
Earlier on October 30, Insight Enterprises, Inc. (NASDAQ:NSIT) announced its third-quarter results, with EPS and revenue outperforming expectations. The company reported an EPS of $2.43, missing the estimate by $0.06, and delivered revenue of $2 billion, lagging the forecast by $0.15 billion. Yet, the company’s focus on AI and cybersecurity, as evident by recent acquisitions, positions it well in the emerging sectors, management outlined.
Looking ahead, Insight Enterprises, Inc. (NASDAQ:NSIT) expects a modest improvement in demand from large clients. Management has guidance of a flat gross profit for hardware and a slight increase in cloud services. With this in mind, the full-year EPS projection is $9.60 to $9.90.
Insight Enterprises, Inc. (NASDAQ:NSIT) is an Arizona-based provider of information technology, hardware, software, and related services. Founded in 1988, the company is committed to “accelerating digital transformation.”
2. Pure Storage, Inc. (NYSE:PSTG)
Upside Potential as of December 8, 2025: 40.37%
Number of Hedge Fund Holders: 48
As of December 8, consensus opinion on Pure Storage, Inc. (NYSE:PSTG) is largely favorable, with more than two-thirds of analysts covering the stock assigning a ‘Buy’ rating. While the target price ranges from $60 to $120, the median price target of $100 implies about 40% upside from the current price.
On December 3, TD Cowen lifted the price target on Pure Storage, Inc. (NYSE:PSTG) to $100 from $85, while keeping a ‘Buy’ rating on the stock, as reported by TheFly. This upward revision comes as analysts assessed the company’s operating margin expansion prospects, which they believe are temporarily stalled due to potential increases in operating expenses. Although volatility remains, the firm noted that the road ahead appears bright.
TD Cowen sees the company’s financial model as dependent on winning hyperscale customers. A testament to this is the company’s forecasted 17% operating margin for 2025, which is lower than the competitor NetApp’s anticipated 29% for the same period. Despite this, Pure Storage, Inc. (NYSE:PSTG) has sustained nearly 13% revenue growth in the past year, reaching $3.48 billion. As management continues to focus on its business strategy, the company’s revenue growth game remains strong, TD Cowen concluded.
Pure Storage, Inc. (NYSE:PSTG) is a California-based provider of data storage and management technologies solutions. Founded in 2009, the company offers Purity software, FlashArray integrated hardware systems, and FlashBlade integrated hardware systems.
1. Ouster, Inc. (NASDAQ:OUST)
Upside Potential as of December 8, 2025: 50.74%
Number of Hedge Fund Holders: 32
As reported by TheFly on December 8, Ouster, Inc. (NASDAQ:OUST) is one of the companies well-positioned to benefit from the potential deployment of autonomous delivery robots and humanoids, according to Andres Sheppard of Cantor Fitzgerald.
This follows Trump’s approval of U.S. manufacturing of low-cost “tiny cars,” expected to include both ICE and EV models, priced between $8,000 and $13,000. The production will comply with DOT safety testing and guidance, the analyst added. Sheppard noted that the administration plans to accelerate the local robotics sector through an executive order. In his early-November update, Sheppard had reiterated a Buy rating with a price target of $33, up from $30 earlier.
Earlier, on December 4, Oppenheimer reaffirmed an ‘Outperform’ rating on Ouster, Inc. (NASDAQ:OUST), with an unchanged price target of $39, implying over 50% upside. This bullish outlook followed the firm’s meeting with management, featuring CFO Ken Gianella and SVP of Strategic Finance & Treasurer Chen Geng.
According to the firm, Ouster, Inc. (NASDAQ:OUST) is equipped with sensor fusion capabilities that are “underappreciated” for their contribution to customer retention. The existing offerings can support the company’s anticipated 30-50% revenue growth in 2026 as it initiates its L4 rollout, the firm highlighted. As the Physical AI solutions continue to progress, the company’s position is described as a “critical technology partner and a definitive leader in perception.”
Ouster, Inc. (NASDAQ:OUST) is a California-based provider of lidar sensors for a diverse range of industries, including automotive, industrial, robotics, and smart infrastructure. With a commitment to building a more sustainable future, the company offers Ouster Sensor and Digital Flash.
While we acknowledge the potential of OUST to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than OUST and that has 100x upside potential, check out our report about this cheapest AI stock.
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