Published on 28 Feb 2024 on Insider Monkey via Yahoo Finance
13 Best Electronic Stocks To Buy Now
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.