BofA Research's February report identifies a clear split in consumer demand across European IT Hardware, where gaming-related spending is holding up strongly while smartphone purchases continue to lag. Against this uneven backdrop, the bank highlights a concentrated set of European hardware and semiconductor companies with significant ties to consumer end-markets that could capture the upside from sustained engagement and eventual recovery.
Logitech
BofA points to Logitech as the company most directly exposed to the gaming theme among its coverage. The bank notes that roughly 35% of Logitech's revenue is tied to the U.S. market and that gaming represents about 30% of group sales. BofA cites data showing gaming as the strongest consumer category in January, with spending up 19% year-on-year and a rolling 12-month average growth exceeding 40%. Those metrics, the bank argues, underpin steady demand for gaming peripherals and position Logitech to benefit from sustained engagement rather than demand that is merely cyclical or seasonal.
Soitec
Soitec appears on BofA's list as one of the more consumer-exposed names within European IT Hardware, owing to a sizable share of its revenue linked to consumer electronics via engineered substrate technologies. While the bank acknowledges that smartphone demand is weak in the near term, its medium-term forecasts assume a recovery in smartphones beginning in 2026. BofA suggests that as replacement cycles normalize and end-market growth resumes, Soitec's consumer exposure could provide a more supportive revenue backdrop.
Mycronic
Mycronic is included in the Consumer Edition for its indirect exposure to consumer electronics through the production equipment used in electronics manufacturing. BofA observes early signs of stabilization in consumer electronics and hobbies spending after an extended downturn, and notes that such stabilization could over time underpin demand for capital equipment. Although Mycronic is not directly tied to gaming consumption, its business stands to gain from any recovery in electronics production volumes if consumer markets continue to improve.
Nordic Semiconductor
Nordic Semiconductor is highlighted for its focus on low-power connectivity solutions that are widely used across consumer devices, including gaming accessories and peripherals. BofA's evidence of resilient gaming demand and improving engagement metrics provides a constructive backdrop for connectivity-driven semiconductor content, even as broader smartphone spending remains subdued in the near term.
Overall, BofA's analysis narrows in on firms with meaningful consumer-facing revenue streams, particularly where gaming-related spending and connectivity content are material. The bank's view ties current investment appeal to observable engagement and spending momentum in gaming, while treating smartphone weakness as a separate near-term headwind with a medium-term recovery window starting in 2026.
Data and timeframe noted in this report - The report references January gaming spending growth of 19% year-on-year and a rolling 12-month average growth rate above 40%. BofA's smartphone recovery projection is referenced as beginning in 2026. Revenue exposures cited include Logitech's ~35% U.S. market exposure and gaming representing roughly 30% of its group sales.