From Nasdaq, Inc.:

The PC market experienced a modest recovery in Q4 2023, with a 0.3% year-over-year increase in worldwide shipments to 63.3 million units. Most analysts project the trend to continue in 2024 with the innovation of on-device AI capabilities in PCs, benefiting PC manufacturers, chipmakers, and memory producers. Acer led the way with 11.1% year-over-year growth, followed by Apple, HP, and Lenovo (read: all the technology ETFs here).

The recovery was due to a demand and supply balance and resolved inventory issues. The concept of AI PCs is the next growth opportunity for the market, driven by aging laptops and desktops purchased at the onset of the pandemic in 2020. Despite the uptick, the industry experienced a significant decline in 2023, with total shipments falling to 241.8 million units, the lowest since 2006.

Shipments for Q4 2023 saw a 3% year-over-year increase to 65.3 million units, with notebooks hitting 51.6 million units, and desktops at 13.7 million units. Overall PC shipments for 2023 dropped 13% year over year to 247 million units. Technology Select Sector SPDR Fund, Vanguard Information Technology ETF, iShares U.S. Technology ETF, MSCI Information Technology Index ETF, and First Trust Technology AlphaDEX Fund show promise.

Technology Select Sector SPDR Fund (XLK) has an AUM of $57.1 billion and an average daily volume of 6.8 million shares, charging 10 bps in fees per year. Vanguard Information Technology ETF (VGT) has AUM of $58 billion and an expense ratio of 0.10%. iShares U.S. Technology ETF (IYW) comes with an AUM of $14 billion and charges 40 bps in fees and expenses. MSCI Information Technology Index ETF (FTEC) has an AUM of $8.1 billion and an expense ratio of 0.08%. First Trust Technology AlphaDEX Fund (FXL) has an AUM of $1.3 billion and charges 62 bps in fees per year.

Investors can benefit from the recovery in the PC market through ETFs such as Technology Select Sector SPDR Fund (XLK), Vanguard Information Technology ETF (VGT), iShares U.S. Technology ETF (IYW), MSCI Information Technology Index ETF (FTEC), and First Trust Technology AlphaDEX Fund (FXL). For more information and analysis on top-performing ETFs, sign up for Zacks’ free Fund Newsletter.



Read more: 5 Technology ETFs to Buy on a Rebound in PC Sales