13 Best Electronic Stocks To Buy Now

Hamna Asim
13 min read

In This Article:

In this article, we discuss 13 best electronic stocks to buy now. If you want to skip our discussion on the electronic components industry, head over to 5 Best Electronic Stocks To Buy Now. 

The general electronic components market has experienced strong recent growth, reaching $514.79 billion in 2023 and is projected to grow to $550.59 billion in 2024 at a compound annual growth rate (CAGR) of 7.0%. As per the report from Research and Markets, this growth is attributed to factors like increased disposable income, higher internet penetration, a low-interest-rate environment, and increased investments. The market is expected to continue growing, reaching $708.41 billion in 2028 at a CAGR of 6.5%. Key drivers include a rising demand for electronic components in display devices, IoT growth, and lucrative opportunities. Anticipated trends include 3D printed electronic components, increased merger and acquisition activities, integration of AI and machine learning in manufacturing, adoption of modular connector systems for transportation, and more collaborations. The growth is fueled by increasing demand for specific components like microwave tubes, cathode-ray tubes, X-ray tubes, photoelectric tubes, and triodes in display devices, particularly with the proliferation of smart devices. The Asia-Pacific region, led by China, plays a significant role in this growth, with major contributions from chip designers, chipmakers, and critical components used in various applications. 

As the electronic components industry enters 2024, it reflects a pivotal moment marked by recovery from recent geopolitical challenges. Fusion Worldwide's assessment reveals key themes shaping the industry's trajectory. The aftermath of extreme shortages, record-high lead times, and pricing fluctuations in 2022 led to significant overbuying in 2023, resulting in substantial excess inventory across different sectors. The rapid evolution of artificial intelligence, expected to contribute $1.3 trillion in growth by 2032, continues to exert a profound influence on market dynamics. Tensions between the US and China persist, stemming from past tariffs on chipmaking and trade, creating a delicate balancing act as China seeks to avert a recession. Additionally, global conflicts in Israel and Ukraine pose threats to the electronic components supply chain, impacting manufacturing, machinery, investment, and consumer confidence. 

Per the Fusion Worldwide report, the electronic components industry in 2024 showcases distinct dynamics across different market sectors. In the aerospace and defense sector, there is a robust demand for components supporting builds in both industries. The increasing electrical complexity in commercial airplanes contributes to reliable demand. On the automotive front, the sector faced challenges in keeping pace with the global chip shortage but has regained control, enjoying a generally favorable long-term outlook. However, challenges such as pricing volatility must be navigated. Contract manufacturers are expected to remain a focal point of industry discussions in 2024 and beyond. The industry anticipates an uptick in offshoring activities, particularly in emerging countries, coupled with positive changes in the regulatory landscape driving growth. Enterprise computing and servers emerge as exciting opportunities in the electronic component landscape. The ever-growing need for data and computing positions this sector to reach its full potential, influencing critical areas such as AI, IoT, graphics, multimedia, telecommunications, and beyond. The telecom and networking segment, crucial for enabling AI, IoT, and edge computing, foresees sustained high-margin activities, largely insulated from significant challenges in the long run. In the gaming industry, which faced notable obstacles in 2020 and 2021, a rebound is expected. Graphics cards and GPUs remain significant elements, but the landscape is evolving with the rising popularity of cloud gaming, virtual reality, augmented reality, and AI, sparking demand for more advanced components. In the healthcare sector, where operational expenses are a significant consideration, disruptive technologies hold transformative potential. The adoption of AI, remote patient monitoring devices, and digitized diagnostic equipment could reshape paradigms in the field. While there is reluctance among healthcare centers to incur substantial annual expenses, the sector is poised for change with the advent of groundbreaking applications.

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