Industry Overview - Global demand for consumer electronics is projected to reach $905.9 billion by 2026, reflecting a year-over-year growth of 5.8% from $856.24 billion in 2025 [2] - The upcoming surge in gadget demand will be fueled by advancements in AI, 5G connectivity, immersive computing, and smarter devices [3] - The semiconductor industry is central to this growth, with increased demand for memory, processors, interconnects, and manufacturing tools as AI capabilities expand [4] Investment Opportunities - Companies supplying hardware for next-generation gadgets are positioned to benefit, including those producing advanced processors, memory chips, interconnect components, and manufacturing equipment [5] - Notable companies include NVIDIA Corporation, Micron Technology, Lam Research, and Amphenol Corporation, which play complementary roles in the hardware ecosystem [6] Company Highlights Micron Technology - A leading manufacturer of memory chips, Micron produces DRAM and NAND flash memory, essential for modern gadgets and AI servers [8] - The demand for Micron's high-bandwidth memory (HBM) is expected to remain strong, with a projected revenue increase of 89.3% for fiscal 2026 and 22.8% for fiscal 2027 [10] - Micron currently holds a Zacks Rank 1 and a Growth Score of A, indicating strong growth potential [10] Amphenol Corporation - Amphenol is a major supplier of interconnect products, benefiting from rising demand for connectors and fiber products used in smartphones and data centers [11][12] - The company is expected to see revenue growth of 49.4% in 2025 and 12.4% in 2026, with earnings growth of 74.1% for 2025 and 21.4% for 2026 [14] - Amphenol currently has a Zacks Rank 1 and a Growth Score of B [14] Lam Research - Lam Research provides wafer fabrication equipment critical for semiconductor manufacturing, particularly for AI and advanced packaging technologies [15][16] - The company anticipates revenue growth of 14.1% for fiscal 2026 and 12.5% for fiscal 2027, with earnings growth of 15.7% for fiscal 2026 and 16.5% for fiscal 2027 [17] - Lam Research holds a Zacks Rank 2 and a Growth Score of A [17] NVIDIA Corporation - NVIDIA is a leader in high-performance GPUs, essential for AI computing and consumer gadgets [18] - The company is experiencing rapid growth in data center revenues, with projected revenue increases of 62.4% for fiscal 2026 and 43.2% for fiscal 2027 [20] - NVIDIA currently has a Zacks Rank 2 and a Growth Score of B, positioning it well for future growth [20]