Let’s dig into the relative performance of IonQ (NYSE: IONQ) and its peers as we unravel the now-completed Q1 hardware & infrastructure earnings season.

The Hardware & Infrastructure sector will be buoyed by demand related to AI adoption, cloud computing expansion, and the need for more efficient data storage and processing solutions. Companies with tech offerings such as servers, switches, and storage solutions are well-positioned in our new hybrid working and IT world. On the other hand, headwinds include ongoing supply chain disruptions, rising component costs, and intensifying competition from cloud-native and hyperscale providers reducing reliance on traditional hardware. Additionally, regulatory scrutiny over data sovereignty, cybersecurity standards, and environmental sustainability in hardware manufacturing could increase compliance costs.

The 9 hardware & infrastructure stocks we track reported a slower Q1. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Luckily, hardware & infrastructure stocks have performed well with share prices up 18.6% on average since the latest earnings results.

Best Q1: IonQ (NYSE: IONQ)

Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.

IonQ reported revenues of $7.57 million, flat year on year. This print exceeded analysts’ expectations by 0.9%. Overall, it was a strong quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations.

IonQ achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 48.5% since reporting and currently trades at $43.33.

Read why we think that IonQ is one of the best hardware & infrastructure stocks, our full report is free.

Pure Storage (NYSE: PSTG)

Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE: PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.

Pure Storage reported revenues of $778.5 million, up 12.3% year on year, outperforming analysts’ expectations by 1.1%. The business had a strong quarter with an impressive beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.2% since reporting. It currently trades at $54.46.

Is now the time to buy Pure Storage? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: HP (NYSE: HPQ)

Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.

HP reported revenues of $13.22 billion, up 3.3% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 10% since the results and currently trades at $24.56.

Read our full analysis of HP’s results here.

Super Micro (NASDAQ: SMCI)

Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.

Super Micro reported revenues of $4.6 billion, up 19.5% year on year. This number came in 2.7% below analysts' expectations. It was a slower quarter as it also recorded a significant miss of analysts’ operating income estimates.

Super Micro pulled off the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is up 61.8% since reporting and currently trades at $53.20.

Read our full, actionable report on Super Micro here, it’s free.

Xerox (NASDAQ: XRX)

Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ: XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe.

Xerox reported revenues of $1.46 billion, down 3% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a softer quarter as it produced a significant miss of analysts’ EPS estimates.

The stock is up 11.3% since reporting and currently trades at $4.91.

Read our full, actionable report on Xerox here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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