IT - Hardware Stocks

IT Hardware or Information Technology Hardware sector includes companies that are in the business of manufacturing various computers, associated components and their repairs. Major computer-related components include servers, storage devices, networking equipment, computer systems, and peripherals.

Modern digital transformation efforts require robust and scalable hardware infrastructure to handle the growing volumes of data, ensure seamless connectivity, and support their software applications.

Several factors have contributed to the growth of the IT Hardware sector in India:

1. The IT industry’s expansion: The digitisation drive in a post-COVID world has given rise to IT-led industries that require hardware. The increased number of smartphone users due to cheap internet has also helped.
2. Public sector’s digital transformation: Governments worldwide are investing heavily in IT hardware to streamline operations and deliver better services to citizens.
3. Cloud computing, IoT and big data’s meteoric rise: These technologies necessitate powerful servers, storage systems, and robust networking equipment to function effectively.

Globally speaking, the Asia Pacific region is poised to be the fastest-growing market for IT hardware, thanks to rising demand and location of major IT hardware manufacturers like Samsung and Lenovo.

The IT Hardware industry is a behemoth, driven by the insatiable demand for computing power, storage, and networking equipment. In 2024, the market size is estimated to be a staggering $130.86 billion, and it’s projected to reach a colossal $191.03 billion by 2029, expanding at a remarkable CAGR of 7.86%.

Major challenges of the IT industry include e-waste from the rapid obsolescence of IT hardware, the constant need for innovation, etc. However, IT Hardware as an industry is constantly adapting to meet the evolving needs of its customers and is well-positioned for sustained growth in the years to come.

1. Check for Financial Fitness: Check if the financial health of individual companies is in order or not. Check for profitability, cash flow, and capital efficiency to assess their operational strength.
2. Follow the Client Industries: Major drivers for the sector could include trends in growth in IT hardware-heavy sectors like IT software, BFSI, e-commerce, etc. Trends in these sectors will help you track trends in IT hardware.
3. Competitive Landscape: Map the major players in the Indian IT Hardware market and their market shares.

Investing in IT Hardware stocks via Angel One is easy. Simply follow these steps:

• Log in to your Angel One account.
• Click on the search icon and look for your desired IT Hardware stock.
• Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
• To complete your transaction, click on the ‘Buy’ button.

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