With the age of generative AI, well and truly here, it can be easy to forget the technologies that power today’s innovations. Next-generation displays will always serve a purpose in future iterations of cutting-edge technology, making them a key consideration for long-term investment.
The global electronic display market value was expected to top $173.7 billion in 2023, and its compound annual growth rate was forecasted at 3.7%. This illustrates a valuable industry that’s steadily growing.
The expected emergence of the metaverse is set to offer digital transformation for remote collaboration and gaming in a way that demands more next-generation display technology.
With this in mind, the future is bright for these three next-gen display stocks that are well-positioned to leverage growth on Wall Street over the coming years,
Dell Technologies (DELL)
Although the stock has experienced some recent volatility due to news that the Biden administration is set to tighten restrictions on computer chips due to concerns over dealing with China, Dell Technologies (NYSE:DELL) has shown plenty of long-term outperformance on Wall Street in 2024.
The stock closed the first half of 2024, 84.4% up, and the computer giant has become a U.S. leader in producing gaming monitors to high-performance specifications.
With the recent unveiling of its first AI-powered XPS laptops, we’re likely to see Dell’s display credentials gain fresh resonance among consumers.
Dell saw solid earnings growth in the first quarter of 2024 and better-than-expected sales; however, its long-term prospects may hinge on its performance in artificial intelligence.
With Q2 2024 forecasts suggesting a 5% dip in adjusted earnings of $1.65 per share, the firm’s ability to drive AI innovation is likely to sustain its impressive performance of late.
Looking ahead, analysts remain bullish on Dell. In a recent note to clients, Bank of America raised its price target for DELL to $180 from $130, citing a clearing outlook moving into 2025.
Apple (AAPL)
It’s been a challenging year for FAANG mainstay Apple (NASDAQ:AAPL). Following downgrades and an EU lawsuit in the first half of 2024, the stock showed some strong resilience in the second quarter, rallying 23.87%.
Apple is among the most innovative next-gen display stocks to buy now because of the somewhat tumultuous launch of the Vision Pro headset, which boasts a remarkable 23-million-pixel resolution micro-OLED display for each eye.
The Vision Pro hasn’t been a roaring success. Recent data suggests that unit sales won’t surpass 500,000 in 2024, but this shouldn’t detract from the technology’s potential for the future of virtual reality, spatial computing and remote collaboration.
Although 2024 hasn’t been a strong year for the Vision Pro, we will likely see the technology gain more resonance. With the prospect of the metaverse opening the door to more headset usage, the high-quality display resolutions featured in the Vision Pro could become more prevalent.
As for Apple’s stock itself, much of its recent outperformance stems from high investor expectations for the arrival of the first AI-powered iPhone, which has seen some analysts predict an unprecedented $5 billion valuation for the stock should its utility of artificial intelligence become a hit.
Universal Display Corporation (OLED)
No company is more innovative than Universal Display Corporation (NASDAQ:OLED) when it comes to manufacturing and researching organic light-emitting diodes (OLED) display technology.
The company has also been largely successful in recent months, recording growth of 12.69% over the first half of 2024.
Crucially, OLED has shown strength in its fundamentals in recent months. According to its Q1 2024 earnings, the company has generated revenue of $165 million, representing a boost of 27% from Q1 2023. Additionally, earnings per share (EPS) rallied to $1.19 per diluted share, up from $0.83 in Q1 2023.
This level of outperformance has seen Universal Display Corporation gain several admirers, including Jupiter Asset Management, which opted to acquire 8,989 shares in OLED in July.
With the generative AI boom and the prospect of the metaverse still offering a tantalizing level of opportunity in next-gen display innovation, we’re likely to see OLED continue to experience growth into the future. Some of the best value could be found in display stocks for investors ready to add long-term holds to their portfolios.
On the date of publication, Dmytro Spilka did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
