Demand for laptops, PCs and computer peripherals have seen astounding growth over the past few months, thanks to the pandemic that has compelled people to work and learn from home. Also, people are playing video games like never before and this in turn is boosting PC and peripheral sales.
Per a recent report by analyst firm IDC, gaming PCs and monitor shipment will reach almost 50 million units globally. If health experts are believed, the situation isn’t by going to change anytime soon, and this new normal will only help boost sales of PCs and peripherals.
Videogame Sales Boosting PC, Peripherals Sales
Per a new report from IDC, gaming PCs and monitor shipments will increase 16.2% year over year in 2020, reaching 49.6 million units globally. Through the year 2024, shipments will continue to rise to 61.9 million at a CAGR of 5.7%.
Moreover, IDC forecasts that gaming PC shipments will reach 14.8 million this year and 15.8 million in 2024, while monitors will reach 12.4 million shipments this year and rise to 16 million in 2024. Finally, gaming notebooks are expected to see 22.3 million shipments this year and rise to 30.2 million in 2024.
Computer Hardware, Network Software Market to Grow
Demand for video collaboration products has surged over the past two quarters as schools and offices are shut in a bid to prevent the spread of coronavirus. This has seenlocked-down staff relying on video conferencing equipment, software and webcams.
Declining PC sales in recent years have led many industry prognosticators, as well, to declare the PC if not dead than dying, supplanted by tablets along with smartphones. However, the pandemic has seen PCs getting a fresh lease of life.
The upswing in shipments began in the second quarter of the year, IDC reported, after retail channels were wiped out from early buying during the COVID-19 pandemic, which began affecting the United States in early March. Worldwide PC unit shipments surged 11.2% in the second quarter, according to IDC.
Stocks in Focus
The at-home culture is here to stay for a longer time than expected with no signs of the pandemic easing. Demand for PCs, monitors and computer hardware and will only grow in such a situation.
Lenovo Group Ltd. LNVGY is dedicated to building PCs and mobile Internet devices. Lenovo's business is built on product innovation, a highly-efficient global supply chain and strong strategic execution.
The company’s expected earnings growth rate for the current year is 37.6%. The Zacks Consensus Estimate for current-year earnings has improved 1.4% over the past 60 days. Lenovo carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple Inc. AAPL designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories worldwide. Its signature products include iPhone, Mac and iPad.
The company’s expected earnings growth rate for the current year is 9.1%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 60 days. Apple has a Zacks Rank #3 (Hold).
Logitech International LOGI is a global leader in peripherals for personal computers and other digital platforms, which develops and markets innovative products in PC navigation, Internet communications, digital music, home-entertainment control, video security, interactive gaming and wireless devices.
The company’s expected earnings growth rate for the current year is 16.3%. The company’s shares have advanced 15.2 over the past three months. Logitech carries a Zacks Rank #3.
Immersion Corporation IMMR develops hardware and software technologies that enable users to interact with computers using their sense of touch. Their patented technologies, which are branded TouchSense, enable devices such as mice, joysticks, knobs, and medical simulation products to deliver tactile sensations that correspond to on-screen events.
The company’s expected earnings growth rate for next year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. Immersion Corporationhas a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL): Free Stock Analysis Report
Logitech International S.A. (LOGI): Free Stock Analysis Report
Immersion Corporation (IMMR): Free Stock Analysis Report
Lenovo Group Ltd. (LNVGY): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.