The Street is undervaluing these tech hardware names, says Bernstein's Mark Newman

Investment Ratings & Recommendations - Bernstein initiated coverage with an outperform rating on Apple, Dell, SanDisk, and Seagate, anticipating significant gains due to increased AI spending [1] - Bernstein is most positive on Seagate, expecting continued outperformance despite a 142% increase in 2025 [2] Market Drivers & Trends - The intelligence revolution and the resulting data explosion are driving performance for storage companies [3] - Data storage needs are increasing, benefiting both hard disk drive (Seagate) and NAND flash (SanDisk) manufacturers [3][9] Company-Specific Analysis - Seagate is a leader in next-generation hard disk drive technology, expected to drive down costs and expand margins [4][5] - Seagate is projected to have a 28% compound annual growth rate (CAGR) in earnings per share (EPS) over the next five years [5] - SanDisk is considered underappreciated after its spin-off from Western Digital [6] - SanDisk's valuation is approximately half of its fab replacement value, with its intellectual property effectively valued at zero [7][8] Financial Outlook - Bernstein is ahead of the street on earnings expectations for both Seagate and SanDisk [9]