Seagate Technology (STX) shares closed nearly 20% higher on Jan. 28 after the American data storage firm posted its Q2 earnings that handily topped estimates on insatiable AI-driven demand. Investors cheered STX today as its gross margin climbed to a record 42.2% in the second quarter and management guided for a much better-than-expected $2.9 billion in sales in Q3. More News from Barchart However, since Seagate stock has witnessed a more than 6x increase in less than a year, it’s well within reason to ...

Market Overview - The Federal Reserve maintained the federal funds rate target range at 3.5%-3.75%, aligning with market expectations[9] - The Hang Seng Index closed at 27,827, down 2.58% for the day but up 8.57% year-to-date[3] - The S&P 500 index closed at 6,978, with a slight decrease of 0.01% for the day and a year-to-date increase of 1.94%[3] Stock Performance - Gold prices surged, with spot gold exceeding $5,280 per ounce, marking a monthly increase of over 22%[9] - Semiconductor stocks saw significant gains, with the Philadelphia Semiconductor Index rising by 2.34%[9] - Major tech stocks showed mixed results, with Intel up 11.04% and Microsoft down 6% post-earnings report[9] Sector Highlights - Oil stocks continued to rise, with Shanghai Petrochemical gaining over 5% due to geopolitical tensions driving oil prices up by 3%[9] - New consumer concept stocks performed well, with a snack retail chain soaring 69% on its debut[9] - Airline stocks faced pressure, with China Southern Airlines down 6.83% due to rising operational costs[9] Economic Indicators - The U.S. dollar index fell to 95.51, the lowest since February 2022, contributing to the rise in gold prices[9] - The Japanese yen strengthened, impacting export-related stocks negatively, with Toyota down 3.24%[13] - The Bank of Japan raised its policy rate to 0.75%, the highest in 30 years, indicating a cautious approach to future rate hikes[13]

Group 1 - Lee & Man Paper Manufacturing (02314) rose nearly 6% after Nine Dragons Paper announced a profit forecast of approximately 2.15 billion to 2.25 billion yuan for the six months ending December 31, 2025, representing a year-on-year increase of 216.0% to 230.7% [1] - New Oriental Education (09901) increased nearly 4% following the release of its financial results for the second quarter of fiscal year 2026, showing a 14.7% year-on-year increase in net revenue and a 244.4% rise in operating profit [1] - Jolywood (06680) surged nearly 7% as rare earth prices continued to rise, with neodymium and praseodymium oxide prices increasing by over 120,000 yuan per ton [1] Group 2 - Chinese property management stocks saw a significant rise, with Sunac Services (01516) up 5.67% and Greentown Services (02869) up 5.81%, as a report predicted an average revenue growth of 6% for property management companies by 2025 [2] - Valiant Pharmaceuticals (09887) gained nearly 4% after receiving FDA fast track designation for its dual-specific antibody LBL-034 for treating relapsed/refractory multiple myeloma [2] - The commercial aerospace sector showed signs of recovery, with Junda Co. (02865) rising 12.1% as the China Aerospace Science and Technology Corporation emphasized the importance of the next decade for developing a strong aerospace industry [2] Group 3 - Aigo Group (00328) experienced a dramatic drop, falling over 88% at one point, with a total market value dropping below 35 million HKD [3] - China Overseas Development (00688) rose over 4.2% as Citigroup's report indicated that the Chinese real estate sector would face significant impairment and margin decline challenges in fiscal year 2025 [3] - Yuegangwan Holdings (01396) increased by 8% after announcing a share placement to raise 108 million yuan, with about 70% allocated for AI computing power cloud service projects [3] Group 4 - Junda Co. (02865) saw a rise of 11.99% as the China Aerospace Science and Technology Corporation held a meeting emphasizing the need to overcome challenges in commercial rocket launches and reusable technology [4] Group 5 - In the US market, New Oriental (EDU.US) rose 5.32% after reporting a net revenue of 1.191 billion USD for the second quarter of fiscal year 2026, a 14.7% year-on-year increase [5][6] - Semiconductor equipment and materials sector saw gains, with Texas Instruments (TXN.US) up 9.94% as it projected first-quarter revenue between 4.32 billion and 4.68 billion USD, slightly above analyst expectations [5] - Storage sector stocks surged, with Seagate Technology (STX.US) up 19.14% as it projected third-quarter revenue of 2.9 billion USD, significantly higher than analyst estimates [5]

Core Insights - Seagate Technology Holdings plc experienced a significant stock price increase, reaching an all-time high of $449.50 during intra-day trading, ultimately closing up by 19.14% at $442.93 [1] - The company reported a 76% increase in net income for Q2 FY2026, amounting to $593 million, compared to $336 million in the same quarter the previous year [2] - Revenues for the same period rose by 21.5% to $2.8 billion, up from $2.3 billion year-on-year [2] Financial Performance - Seagate's Q2 results surpassed expectations, achieving new records in gross margin, operating margin, and non-GAAP EPS, indicating strong operational execution and robust data center demand [3] - The company anticipates revenues of approximately $2.9 billion for Q3, with a diluted EPS target of $3.40, subject to a variance of $0.20 [5] Market Position and Strategy - The demand for storage solutions is increasing due to AI applications, necessitating performance and cost-efficient storage at exabyte-scale [4] - Seagate's product roadmap focuses on areal-density-driven solutions to meet evolving storage requirements and capitalize on exabyte demand growth, aiming to create significant value for customers and shareholders [4]

Summary of Earnings Call Company and Industry - **Companies Mentioned**: STX (Seagate Technology), ASML, TXN (Texas Instruments), QRVO (Qorvo) - **Industry**: Technology, specifically focusing on data storage, semiconductors, and electronics Key Points and Arguments STX (Seagate Technology) - **Earnings Performance**: - Revenue of $2.83 billion, up 22% year-over-year, compared to a previous quarter's growth of 21% and market expectations of $2.74 billion, which was approximately 18% growth [7][6] - EPS of $3.11, exceeding market expectations of $2.83; Non-GAAP gross margin at 42.2% vs. expected 40.8% [7] - **Market Commentary**: - Management described an "exceptionally strong" data center environment, expecting demand to offset typical seasonal declines [9] - Nearline capacity fully allocated through CY26, with plans to accept orders for 1H27 [12] - **Pricing Trends**: - Revenue per TB remains stable with a modest increase in $/TB expected to continue, indicating a potential shift in pricing dynamics [12] - **Growth Drivers**: - Incremental storage-server demand linked to AI workloads, with data centers remaining the core driver of growth [9] TXN (Texas Instruments) - **Earnings Performance**: - Q4 revenue of $4.423 billion, up 10.4% year-over-year, aligning with market expectations [24][26] - Q1 guidance midpoint of $4.50 billion, indicating a 2% quarter-over-quarter increase and 10.6% year-over-year growth [24] - **Market Commentary**: - Management expressed optimism about industrial recovery and data center strength, with improving orders and backlog [23] - Data center business expected to grow approximately 70% year-over-year [26] - **Pricing Trends**: - Management anticipates low single-digit price declines (~2-3%) in 2026, emphasizing the impact of annual negotiations [26] QRVO (Qorvo) - **Earnings Performance**: - Q4 revenue and EPS were better than expected, but Q1 guidance was approximately 12% below market expectations [32][35] - **Market Commentary**: - Management attributed revenue gaps to weakness in Android and planned exits from lower-margin models [35] - Concerns about the sustainability of profitability amidst declining Android sales and competition [41] - **Growth Drivers**: - Focus on transitioning to higher-quality, more durable programs, with expectations of gross margins above 50% despite revenue declines [42] ASML - **Earnings Performance**: - Stock price increased by 5% due to bookings of €13 billion, significantly exceeding expectations [45] - **Market Commentary**: - Management highlighted strong progress with customers and revenue guidance implying 4-20% year-over-year growth for 2026 [46] - **Growth Drivers**: - Continued demand in semiconductor capital expenditures, with a focus on high-volume manufacturing tools [46] Additional Important Insights - **Market Sentiment**: - The overall sentiment in the technology sector appears positive, driven by strong earnings reports and optimistic guidance from key players [1][2] - **Investment Considerations**: - The discussions around pricing stability and growth in data center demand suggest potential investment opportunities in companies like STX and TXN, while QRVO faces challenges that may impact its valuation [18][22][42]

Seagate FY2Q26 Earnings Call Summary Company Overview - Company: Seagate Technology Holdings PLC - Industry: Data Storage Solutions Key Financial Metrics - Revenue for FY2Q26: $2.825 billion, YoY +22%, QoQ +7%, exceeding guidance [1] - Non-GAAP EPS: $3.11, YoY +53%, QoQ +19%, exceeding guidance [1] - Non-GAAP Gross Margin: 42.2%, YoY +670 bps, QoQ +210 bps, driven by increased adoption of high-capacity products and pricing strategies [1] - Operating Profit Margin (OPM): 31.9%, YoY +880 bps, QoQ +290 bps [1] - Free Cash Flow (FCF): $607 million, QoQ +42%, highest in the past eight years [1] Business Segment Performance 1. **Data Center** - Revenue: $2.224 billion, YoY +28%, QoQ +5%, driven by AI application proliferation and enterprise edge data storage demand [2] 2. **Edge IoT** - Revenue: $601 million, YoY +2%, QoQ +17%, primarily due to seasonal improvement in consumer products in the VIA client market [2] Business Highlights 1. **Total Hard Drive Capacity Shipped**: 190 EB, YoY +26% - Units remained flat, but average nearline single-drive capacity increased by approximately 22% due to customer transition to higher-capacity drives [2] - Nearline EB expected to grow mid-20% in 2026 [2] - 2026 production capacity sold out, with volume and price already determined; consensus on 2027 sales with prices likely stable or slightly increasing, strong demand visibility [2] 2. **Demand Drivers** - AI is driving strong growth, generating significant checkpoint data for model training [2] - Agentic AI requires substantial contextual data for planning, reasoning, and decision-making [2] - AI-driven video generation is increasing demand for high-capacity storage [2] - Data center big data storage architecture based on HDD remains stable, with future optimizations focused on streaming performance rather than random small block workloads [2] 3. **Technological Advancements** - Mozaic 3+ HAMR production ramp-up ongoing, with all major U.S. CSP certifications completed; global CSP certification expected in 1H26 [2] - Mozaic 4+ HAMR to complete multiple certifications in the coming months, with mass production starting in FY3Q26 [2] 4. **Capital Expenditure and Depreciation** - CAPEX maintained at a low level of 4%-6% of revenue, with depreciation over ten years [2] Future Outlook - FY3Q26 revenue expected to be $2.9 billion ± $100 million [4] - Non-GAAP OPM projected to approach mid-thirties percentage [4] - Non-GAAP EPS forecasted at $3.40 ± $0.20 [4] - Strong demand in data centers anticipated to offset seasonal impacts in the Edge IoT market [4] - Cost per TB expected to decrease after mass production of 40TB drives, further enhancing gross margin [4]

Federal Reserve and Economic Indicators - The Federal Reserve cited elevated inflation and solid economic growth for its decision to keep interest rates unchanged at 3.5%-3.75%, with eight out of ten policymakers voting to hold rates steady [2][13] - Fed Chair Jerome Powell indicated that the Fed would remain data-dependent, noting that upside risks to inflation and downside risks to employment have diminished [3][6][13] - Despite the stabilization in the job market, inflation remains stubborn, and there hasn't been a significant enough change in employment or inflation to warrant aggressive rate cuts [6][13] Market Reactions and Sector Performance - The Dow Jones Industrial Average rose by 12.19 points (0.02%) to 49,015.60, while the S&P 500 lost 0.57 points (0.01%) to 6,978.03, and the Nasdaq Composite gained 40.35 points (0.17%) to 23,857.45 [7][13] - The S&P 500 briefly surpassed the 7,000 points milestone but could not maintain those gains, with the biggest decliners being real estate, consumer staples, and healthcare sectors [7][13] - The energy sector increased by 0.7% and technology by 0.6%, with significant contributions from chip stocks following positive earnings reports [8][13] Earnings Reports and Company Performance - Following the Fed update, investors focused on earnings from major companies, with Meta and Tesla shares rising nearly 4% and 3% respectively, while Microsoft shares fell over 3% [9][13] - IBM shares jumped 7% after its earnings report, while AT&T's shares rose after projecting annual profit above market expectations [10][13] - In contrast, Textron shares fell by 7.9% after guiding for fiscal profit below estimates, and Otis stock slipped after its fourth-quarter revenue missed expectations [10][13] Market Activity and Trends - On the NYSE, declining issues outnumbered advancers by a 1.37-to-1 ratio, with 593 new highs and 97 new lows, while on the Nasdaq, 1,710 stocks rose and 3,029 fell, resulting in a 1.77-to-1 ratio of declining to advancing issues [11][13] - The S&P 500 recorded 38 new 52-week highs and 14 new lows, while the Nasdaq Composite had 102 new highs and 125 new lows [11][13] - A total of 19.03 billion shares changed hands on U.S. exchanges, compared to the 20-day moving average of 18.29 billion [12][13]

Shares of Seagate Technology (NASDAQ: STX) popped on Wednesday after the hard disk drive maker's fast-growing profits highlighted the shocking demand for its data storage products. By the close of trading, Seagate's stock price was up more than 19%. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Image source: Getty Images. The data storage industry is booming Seagate's revenue jump ...

wo[Table_Title] Research Report 29 Jan 2026 中国电子 China (Overseas) Technology 全球科技业绩快报：希捷 FY26Q2 Global Tech Earnings Snapshot: Seagate FY26Q2 姚书桥 Barney Yao 吕小潼 Xiaotong Lyu barney.sq.yao@htisec.com xt.lyu@htisec.com [Table_yemei1] Flash Analysis [Table_summary] (Please see APPENDIX 1 for English summary) 事件 Seagate FY26Q2 业绩表现：营业收入为 28.25 亿美元，同比增长 22%、环比增长 7%；non-GAAP 毛利率为 42.2%（环 比提升 210bp），经营利润率为 31.9%，EPS 为 3.11 美元。本季度 HDD 总容量出货达 190EB，同比增长 26%，其中 近线（Nearline）硬盘出货 165EB，同比增长 31%。按业务划分，数据中心收入为 22.24 亿美元（ ...

Group 1 - The core viewpoint highlights a significant surge in the stock prices of storage companies, with Seagate Technology rising by 19% and Western Digital by 10%, driven by the increasing demand for NAND storage solutions in AI applications [1] - SK Hynix indicates that NAND is becoming a crucial storage solution supporting AI, with substantial growth in eSSD demand linked to various GPU models [1] - NVIDIA's introduction of an AI inference context storage platform has led to a notable increase in eSSD capacity requirements, with projected needs for different GPU models ranging from 4TB to 24TB [1] Group 2 - According to TrendForce, NAND Flash contract prices are expected to see a significant increase, with a projected rise of 55%-60% by Q1 2026 and an overall annual increase of 105%-110%, which will boost the NAND industry's revenue growth to approximately 112% year-on-year in 2026 [1] - Daway Co., Ltd. focuses on semiconductor storage business, offering NAND and DRAM products applicable in various fields such as personal computers, automotive, IDC, industrial control, medical, rail transportation, and smart electronics [2] - Tongyou Technology is expanding its enterprise-level SSD business, indicating a strategic move towards enhancing its market presence in the storage sector [3]