AAPL: 3 Tech Hardware Stocks Driving Innovation

Tech hardware stocks are at the forefront of innovation, driving advancements in computing, communication, and consumer electronics. The companies in this sector are benefiting from the rapid adoption of technologies like Artificial Intelligence (AI), 5G, and the Internet of Things (IoT).

Given this backdrop, it could be wise for investors to look into fundamentally strong tech hardware stocks Apple Inc. (AAPL), NetApp, Inc. (NTAP), and HP Inc. (HPQ) for potential gain.

Consumer electronics manufacturers are thriving as they integrate advanced technologies into their products. Advancements in digital and electronics technologies now focus on sustainability issues and improve functionality, user experiences, connectivity, integration, miniaturization, and advanced sensors.

Companies are meeting growing consumer demand for connected and intelligent gadgets, from smart home devices to wearable tech. Moreover, the global electronics components market is projected to reach $368.40 billion by 2032, growing at a CAGR of 6.8%.

Further, the global IT hardware market is anticipated to reach $191.03 billion by 2029, exhibiting a CAGR of 7.9%. The tech hardware sector is well-positioned to capitalize on long-term trends such as digital transformation and automation.

Considering these conducive trends, let’s examine the fundamentals of the three best Technology – Hardware stocks, starting with the third choice.

Stock #3: Apple Inc. (AAPL)

AAPL designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company’s product offerings include iPhones, Macs, iPads, AirPods, Apple Watch, Apple TV, Beats products, and HomePod. It also provides DarwinAI, which specializes in visual quality inspection through its Explainable AI platform.

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On December 8, AAPL announced the expansion of its retail in the Kingdom of Saudi Arabia. The launch of the Apple Store online will begin in the summer of 2025, followed by the opening of the first of several flagship Apple Store locations starting in 2026. This expansion should help the company expand its global footprint in Saudi Arabia.

On October 30, AAPL announced the launch of M4 Pro and M4 Max, two new chips that bring more power-efficient performance and advanced capabilities to the Mac. This new launch will help the company strengthen its position as an industry giant and enhance its growth prospects further.

AAPL’s total net sales for the fourth quarter (ended September 28, 2024) increased 6.1% year-over-year to $94.93 billion. The company reported a gross margin of $43.88 billion, indicating an 8.5% growth from the prior year quarter. AAPL’s net income came in at $14.74 billion, and its earnings per share stood at $0.97.

The consensus revenue estimate of $124.41 billion for the fiscal first quarter (ending December 2024) represents a 4% increase year-over-year. The consensus EPS estimate of $2.36 for the same quarter indicates an 8.1% improvement year-over-year. The company has an excellent surprise history; it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters.

Over the past nine months, the stock has surged 47.5%, closing the last trading session at $255.59.

AAPL’s stance is apparent in its POWR Ratings. The stock has an A grade for Quality and a B for Momentum. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

Among the 41 stocks in the Technology – Hardware industry, it is ranked #19. Click here to see the additional AAPL ratings (Growth, Value, Stability, and Sentiment).

Stock #2: NetApp, Inc. (NTAP)

NTAP is an intelligent data infrastructure company that provides a range of enterprise software, systems, and services that customers use to transform their data infrastructures in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments: Hybrid Cloud and Public Cloud.

On December 1, NTAP announced NetApp on-premises enterprise storage arrays for AWS Outposts, a new integrated solution. This integrated solution will allow AWS Outposts customers to simplify, optimize cloud deployments on-premises, and increase resiliency for hybrid cloud deployments by combining NetApp’s unified data storage and intelligent services.

On November 11, NTAP announced the expansion of its collaboration with Red Hat, Inc., the world’s leading provider of open-source solutions, to offer new solutions and to streamline and deliver increased flexibility in enterprise application development management in virtual environments.

In this collaboration, NTAP’s intelligent data infrastructure combined with Red Hat OpenShift will simplify and make it faster for customers to adopt and manage their virtualized environments with mobility and security.

For the fiscal 2025 second quarter that ended on October 25, 2024, NTAP’s net revenues increased 6.1% year-over-year to $1.66 billion. The company’s gross profit came in at $1.18 billion, reflecting an increase of 6% from the prior-year quarter.

Its non-GAAP income from operations grew 13.4% from the same period last year to $475 million. In addition, its non-GAAP net income amounted to $493 million and $1.87 per share, reflecting increases of 16% and 18.4% year-over-year, respectively.

Street expects NTAP’s revenue for the fiscal fourth quarter (ending April 2025) to increase 5.5% year-over-year to $1.76 billion. Moreover, its EPS estimate of $1.99 for the same period indicates a 10.4% year-over-year growth. In addition, it surpassed the consensus revenue and EPS estimates in each of the trailing four quarters, which is impressive.

NTAP shares have surged 32% over the past year and 11.2% over the past nine months to close the last trading session at $116.96.

NTAP’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

It also has an A grade for Quality and a B for Momentum. Within the Technology – Hardware industry, it is ranked #14. Click here to see NTAP’s ratings for Growth, Value, Stability, and Sentiment.

Stock #1: HP Inc. (HPQ)

HPQ is a global provider of personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services. The company operates through three segments: Personal Systems; Printing; and Corporate Investments.

On September 25, HPQ announced the completion of its acquisition of Vyopta, an Austin-based provider of collaboration management solutions. This acquisition brings HPQ, Vyopta’s extensive expertise and infrastructure, to turbocharge the development of HP’s Workforce Experience Platform. It will also help accelerate and expand HPQ’s capabilities, including space and application management.

During the fourth quarter of 2024, which ended on October 31, HPQ’s total net revenue increased marginally year-over-year to $14.10 billion. Its net income amounted to $906 million. Also, the company’s non-GAAP EPS for the quarter rose 3.3% from the year-ago value to $0.93.

Analysts expect HPQ’s revenue for the second quarter (ending April 2025) to increase marginally year-over-year to $13.05 billion, while its EPS for the same period is expected to grow 4.2% from the prior year to $0.85. Moreover, it topped Street revenue estimates in three of the trailing four quarters, which is promising.

The stock has gained 10.5% over the past nine months to close the last trading session at $33.28.

It’s no surprise that HPQ has an overall rating of B, equating to a Buy in our POWR Ratings system. It has a B grade for Value, Momentum, and Quality. Out of 41 stocks in the same industry, HPQ is ranked #7.

Beyond what is stated above, we’ve also rated HPQ for Growth, Stability, and Sentiment. Get all HPQ ratings here.

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AAPL shares were trading at $253.21 per share on Monday afternoon, down $2.38 (-0.93%). Year-to-date, AAPL has gained 32.16%, versus a 25.87% rise in the benchmark S&P 500 index during the same period.