Massive AI related spending is pouring into data centers, memory chips, and processors, and it is spilling over into the prices you see on everyday consumer electronics. With over $700b expected to go into AI infrastructure and major tech groups committing around $720b of their own, component and electricity costs are putting pressure on device makers and, potentially, on inflation and interest rates. This article looks at 3 large consumer electronics stocks that are closely tied to these trends, to help you evaluate where you might want exposure or where you might prefer to stay cautious.
Overview: Universal Electronics is a Scottsdale based supplier of remote controls, smart home and climate control devices, and related software that sit behind many branded TVs, set top boxes, security systems, and connected home products you see in homes and hotels around the world.
Operations: The company generates essentially all of its revenue, about US$355m, from audio and video related products, with sales spread across the United States, Europe, Asia including the People’s Republic of China, Latin America, and other international markets.
Universal Electronics sits in the crossfire of rising AI driven electronics demand and higher component and energy costs, which could pressure margins but also keep its products central to how consumers control their devices. The stock trades on a low P/S multiple relative to peers. Analysts assign a higher consensus price target even as they expect revenue to decline and the company to remain loss making in the near term, which highlights a gap between sentiment and current pricing. At the same time, Universal Electronics is dealing with falling legacy remote sales, customer concentration around groups like Daikin and Comcast, and a very new leadership team, while also trying to grow its connected home and climate control businesses.
Universal Electronics looks like a classic sentiment disconnect, with a low P/S, loss making operations and a higher analyst target hinting that the market may be missing something in the 1 key reward and 1 important major warning sign
Overview: GoPro is a San Mateo based consumer electronics company best known for its action cameras and accessories that let people mount compact, rugged video cameras on helmets, vehicles, drones, and bodies, while its apps and subscriptions help users store, edit, and share their footage.
Operations: GoPro generates all of its roughly US$616.3m in revenue from photographic equipment and supplies, with around half from the United States and the rest spread across EMEA, APAC, and other Americas markets.
GoPro sits in the path of global demand for connected cameras and accessories, but investors need to weigh that appeal against financial strain. The stock appears inexpensive on a P/S basis, yet the company is loss making, has negative shareholders’ equity, and Q1 2026 results showed revenue and net losses moving in the wrong direction. Management is cutting operating expenses, emphasizing higher margin subscriptions and launching products such as the GP3 powered MISSION 1 series. The company is also exploring strategic alternatives that could change the business profile. At the same time, rising memory and component costs tied to AI data center demand, along with fresh debt financing, keep execution risk elevated for GoPro shareholders.
GoPro’s low P/S, loss making profile and fresh product push make the story feel incomplete, especially with strategic alternatives on the table. To explore this further, tap into the 1 key reward and 3 important warning signs (1 is major!)
Overview: Garmin is a Swiss based designer and manufacturer of GPS powered devices, best known for its sports watches, fitness trackers, marine electronics, aarmin Connect software and services
Operations: Garmin generates most of its roughly US$7.5b in revenue from Fitness (US$2.5b), Outdoor (US$2.0b) and Marine (US$1.2b), with additional contributions from A and Auto OEM (US$0.7b)
Garmin stands out in this consumer electronics group because it sells premium wearables, marine systems and avionics with high margin service layers, while still paying a 1.73% dividend and reporting high quality earnings. Recent launches like the vívoactive 6, Forerunner 70 and 170 series, AI based Garmin Connect+ insights, the D2 Mach 2 Pro aviator watch and new AXIS flight displays show how it uses a single technology base across fitness, aviation and marine. The flip side is that Marine softness, higher component and memory costs linked to AI data center demand, and rising R&D and SG&A could squeeze margins if growth slows. That mix of premium positioning, diversified growth drivers and cost risk is what makes Garmin worth a closer look for this screener theme.
Garmin’s premium mix of wearables, marine systems and avionics with service revenue often gets treated as business as usual, yet the real story could be in the analyst forecasts for Garmin and what that implies for margin pressure and competition.
The three stocks here are only a starting point. The full Consumer Electronics Makers screener surfaces 6 more consumer electronics companies with equally compelling narratives around product focus, financial health and risk. Use Simply Wall St to analyze those results, identify the specific catalysts that matter to you and filter narratives so you can focus on the highest conviction ideas in this theme.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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About NYSE:GRMN
Garmin
Designs, develops, manufactures, markets, and distributes a diverse range of GPS-enabled products and navigation, communications, sensor-based, and information products and services worldwide.
Flawless balance sheet with solid track record and pays a dividend.
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