Computer hardware companies are expected to thrive this year and beyond as the digital era demands more advanced computing systems to utilize evolving technologies. So, with this in mind, we think it could be wise to bet now on the shares of Daktronics (DAKT) and Super Micro Computer (NASDAQ:SMCI). The companies have been seeing increasing demand for their products and services. Let’s take a closer look at these names.After experiencing a big sell-off over the past couple of months, tech stocks have been rebounding with renewed investor interest amid the resurgence of COVID-19 cases around the world. But, irrespective of any any short-term boost the industry gets from fears of further waves of coronavirus infections, the demand for computer hardware should continue to increase because advanced computing systems are needed to utilize disruptive, new technologies, such as cloud computing, artificial intelligence (AI), and Internet of Things (IoT).
According to a report by Research and Markets, the global communications hardware market is expected to grow to $666.53 billion in 2021 from $625.11 billion in 2020.
Furthermore, the demand for electronics such as personal computers (PCs), smartphones and smart speakers is expected to increase in the coming months because rapid 5G deployment will require devices compatible with the new networking standard. So, it is wise, we think, to bet now on fundamentally-sound hardware stocksSuper Micro Computer, Inc. (SMCI) and Daktronics, Inc. (DAKT).