In an increasingly complex landscape for the electronics industry, we have recently compiled a detailed list of the 10 Best Electronic Components Stocks to Buy Now. In this article, we will specifically examine how Littelfuse, Inc. (NASDAQ:LFUS) compares to its peers within the electronic components sector.

Recently, President Trump announced a significant policy decision that affects a vast array of electronic devices and components. He has exempted smartphones, computers, and numerous other tech gadgets from the reciprocal tariffs that his administration has been implementing. This decision, which was clarified through new guidance issued by the US Customs and Border Protection on April 11, comes on the heels of Trump imposing steep tariffs of 145% on select imports from China. Notably, the exemptions also extend to vital components such as semiconductors, solar cells, flat panel TV displays, flash drives, and memory cards.

The rationale behind these exemptions, as articulated by the White House, is to provide companies with the necessary time to relocate their production and manufacturing operations back to the United States. This move is seen as part of a broader strategy to bolster domestic manufacturing capabilities. However, in a statement made on April 13, US Commerce Secretary Howard Lutnick cautioned that these electronics and components would eventually fall under new tariffs, a position that aligns with Trump's comments on social media warning that these products would not be exempt from future tariff measures.

Adding another layer of complexity to the situation, the US Commerce Department has initiated a national security investigation focused on the importation of semiconductor technology and related products. This investigation, as noted in an official notice on the Federal Register, invites public comments, with the comment period set to conclude on May 7, 2025. This move underscores the administration's intent to closely scrutinize the semiconductor supply chain, which is crucial for the nation's technology infrastructure and economic security.

The scope of the investigation is broad, encompassing various items including chip components like silicon wafers, manufacturing equipment for semiconductors, and downstream products containing these essential components. Given that semiconductors are integral to the functionality of a wide range of modern electronic devices, this inquiry could have far-reaching implications for both the tech and electronics sectors.

Methodology

To develop our list of the 10 best electronic components stocks to buy now, we utilized stock screeners from Finviz and Yahoo Finance to identify the largest companies within the electronic components sector. Our analysis began with a comprehensive sorting of these companies based on their market capitalization, allowing us to focus on the top 25 stocks. Beyond our own rankings, we also considered insights from financial media reports and various online resources to curate a list of leading electronic components stocks.

Moreover, we concentrated on the stocks that have gained the most favor among institutional investors. The data reflecting hedge fund sentiment for each stock was drawn from Insider Monkeys Q4 2024 database, which encompasses information from over 1,000 elite hedge funds. Finally, the 10 best electronic components stocks were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.