This week, in our focus on the winning analysts in each industry category from our
Analyst Rankings -- Equity 2000
survey, we profile the top analysts in the computer hardware industry. (Check out our last focus,
telecommunications equipment.) Next week we'll look at the computer storage and peripherals sector.
While PC demand has been somewhat sluggish so far this year, the computer hardware sector has outperformed the
by 19%. This sector encompasses both enterprise and PC hardware, and each of our top-three analysts has a somewhat different focus and outlook on the group. Both Don Young of
and Dan Niles of
anticipate an increase in PC demand, noting the end of the Y2K purchasing slump and the prospect of
boosting sales. But Young favors
because of its direct contact with the customer and its ability to sell add-ons, thus increasing their margins, while Niles prefers
, both companies with larger corporate exposure.
Steve Milunovich focuses on enterprise hardware and storage and predicts robust growth in both areas. He believes
will be the biggest winners. Both he and Young see a buildout in Internet infrastructure fueling demand for new servers. But Milunovich expects renewed demand for large UNIX servers, while Young sees a new computing model emerging and a resulting shift to smaller servers organized into "racks and stacks."
* 1st-place winner Rick Schutte
left the sell side after the survey was completed.
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