As purchasing patterns strengthen across both business and consumer sectors, Morgan Stanley projected higher corporate IT hardware growth in 2025 and advised investors to keep their holdings in key names like Apple (AAPL, Financials), Dell Technologies (DELL, Financials), and Seagate Technology (STX, Financials).
From 2024's projected 1.7% business budget increase, which stays below historical levels, the company expects enterprise hardware growth to jump to around 3% following year. Factors mentioned by analysts as likely drivers of recovery into the new year in PCs, peripherals, storage, and servers were increasing consumer attitude and growing demand.
Morgan Stanley called Apple (AAPL, Financials) a standout in the hardware industry and highlighted it as its top recommendation. Other firms under banner of growth include Dell Technologies.
Simultaneously, the analysts saw underpriced prospects in Logitech (LOGI, Financials) and CDW (CDW, Financials). The company claimed these businesses would gain from a more general cyclical hardware rebound. IBM (IBM, Financials) was recognized, meanwhile, for possible difficulties because of its price and less appealing risk-reward perspective.
Conversely, equities such as Garmin (GRMN, Financials) and GoPro (GPRO, Financials) were said to be overpriced; Xerox (XRX, Financials) still suffers from long-term market decreases, according to the analysis.
