Barclays' 2025 Tech Outlook
Barclays just shared its big picture for the tech sector in 2025, and there’s a lot to unpack. From Apple’s challenges to a bounce-back in hardware and networking’s return to normal, here’s the scoop 👇🏼
Apple: A Mixed Bag to Start the Year
Barclays is cautious about Apple’s first-quarter results, coming January 30. While they predict some iPhone recovery later in 2025 as older models need replacing, the ride could be bumpy. Plus, regulatory pressures on the App Store and Apple’s reliance on China could add extra twists.
Networking: Back to Normal
After wild swings during the pandemic, networking is levelling off. Barclays is bullish on Arista Networks, Ciena, and cautiously optimistic about Cisco and Juniper Networks, which is being scooped up by HP Enterprise.
Tech Hardware: A Slow but Promising Recovery
Good news: IT spending is expected to recover, driven by private cloud growth and AI. Barclays likes HP Enterprise and Nutanix for their strategic positioning and sees steady potential in companies like Dell, HP, and NetApp.
Tech Industrials: Resilience and Diversity
This group is set to shine with diversified business models and resilient markets. Barclays is especially excited about Motorola Solutions, Axon Enterprise, and Keysight Technologies, while keeping an eye on Corning and Zebra Technologies for cyclical improvements.
Electronics Manufacturing Services: Ready for an Upswing
Improved margins and AI opportunities make this space a winner for 2025. Barclays favors Celestica, Flex, and Jabil, while being cautiously optimistic about Fabrinet’s market share challenges.
One Downgrade
Harmonic got a downgrade to Equal-Weight due to slower broadband growth and customer concentration issues.
Barclays’ outlook paints a dynamic picture for tech in 2025—plenty of opportunities, but also hurdles. Stay tuned as these trends play out!
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