Core Insights - The Zacks Computer-Storage Devices industry faces challenges from escalating trade tensions, macroeconomic turbulence, and intense competition, but benefits from trends like digital transformation, edge computing, and AI workload proliferation [1][2][6] Industry Overview - The industry includes companies that design, develop, manufacture, and market HDDs and SSDs for various devices, with some offering software-defined all-flash solutions and high-performance memory subsystems [3] Trends Influencing Growth - AI is driving demand for high-speed, high-capacity storage solutions, necessitating a shift towards NVMe-based SSDs and object storage for unstructured data [4] - Cloud storage technologies are evolving, with a focus on virtualization and edge computing to manage increasing data complexity and scale [5] Macro Conditions - Trade tensions and inflation are significant concerns, potentially affecting global IT spending, which is projected to reach $5.43 trillion in 2025, a 7.9% increase from 2024 [6] - PC shipments increased by 4.4% year-over-year in Q2 2025, but are expected to plateau in the latter half of the year due to vendor inventory adjustments [7][8] Industry Performance - The Zacks Computer-Storage Devices industry has outperformed the S&P 500 with a 22.7% increase over the past year, compared to the S&P 500's 17.8% gain, but lags behind the broader sector's 28.3% growth [11] Valuation Metrics - The industry is currently trading at a forward 12-month P/E ratio of 21.15X, below the S&P 500's 23.32X and the sector's 28.93X [14] Company Highlights - **Netlist (NLST)**: Experienced a 44% sequential revenue increase to $41.7 million, driven by DDR5 demand, and is pursuing legal actions against Samsung and Micron for patent infringements [20][21] - **Pure Storage (PSTG)**: Expanded its Flash portfolio and reported strong demand for its products, with a Zacks Rank of 3 and a 71.6% stock gain over the past year [25][27] - **NetApp (NTAP)**: Benefiting from demand for all-flash arrays and cloud storage solutions, with Keystone storage-as-a-service revenues growing 80% year-over-year [32][33]

Core Insights - Nokia, Datwyler IT Infra, Intel, and SIPBB have launched a private 5G and AI-powered edge innovation hub in Switzerland to accelerate industrial digitalization [1][9] - The hub aims to drive innovations in efficiency, safety, and sustainability across key industries such as health, mobility, energy, and manufacturing [1][9] Infrastructure and Technology - The hub provides a full-scale deployment environment with private 5G connectivity, including Nokia Digital Automation Cloud (DAC) and MX Industrial Edge (MXIE) [2] - Future-ready applications like Nokia MX Workmate, an OT-compliant Gen AI solution, will be available for connected workers [2] - The infrastructure leverages Intel Xeon Scalable processors and edge AI capabilities for real-world testing [2][5] Industrial Use Cases - The site enables predictive maintenance through real-time analytics, minimizing downtime and material waste [3] - Communication tools such as push-to-talk and video enhance team connectivity without on-site travel [3] - AI-enhanced safety monitoring improves situational awareness and worker safety [3] Economic and Research Impact - SIPBB serves as a hub for researchers, engineers, and investors to collaborate and validate new technologies [4] - The initiative aims to attract global investment and support Swiss economic growth and digital leadership [4] Partnership and Goals - The collaboration between Nokia, SIPBB, and Datwyler focuses on capturing data securely and bringing AI closer for analysis and decision-making [5] - The partnership showcases use cases that lower total cost of operation (TCO) while enabling scalable and sustainable solutions [5] Accessibility for Innovators - The infrastructure platform allows startups and research teams to access advanced technologies without barriers to entry [6] - The initiative supports digital equity by enabling innovators to test solutions without upfront infrastructure costs [7]

This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. Dive Brief: As the high-tech and data center markets remain hot for builders, Skanska USA is expanding its advanced technology division, the firm announced Monday. Skanska Advanced Technology will now combine the contractor’s mission-critical infrastructure capabilities — i.e., its data center construction team — with its semiconductor delivery group, acc ...

Core Insights - Skanska has announced a strategic realignment of its Skanska Advanced Technology (SAT) division, integrating its infrastructure capabilities with its semiconductor delivery group to better meet rising demand in both sectors [1][2][10] Company Overview - Skanska is a leading global development and construction firm with over 135 years of experience, generating global revenue of $16.8 billion in 2024 [11] - The U.S. construction sector contributed $8.2 billion in revenue, while net investments in commercial projects totaled $224 million in 2024 [11] Division Expansion - The expanded SAT division serves as a centralized hub for operational oversight, ensuring consistent execution and a single point of contact for advanced technology customers nationwide [2][3] - SAT leverages over 30 years of experience and has completed over 240 projects with leading global companies in the data center and semiconductor sectors [3] Leadership - SAT is led by Anita Nelson and Katie Coulson, both seasoned professionals with extensive experience in the construction industry [4][8] Market Trends - The U.S. data center construction market is projected to grow at a CAGR of 10.2% from 2025 to 2030, while semiconductor cleanroom construction is expected to grow at a CAGR of over 3.86% from 2025 to 2034 [5] - There is a shift towards modular and prefabricated construction methods, which enable faster deployment and tighter cost control [6] Sustainability and Innovation - The industry is increasingly adopting low-carbon materials and smart building technologies to enhance operational efficiency and meet sustainability goals [7][9] - SAT aims to lead in the evolving landscape of data center and high-tech manufacturing construction by focusing on modularity, sustainability, and AI-ready infrastructure [10]

Core Insights - The article highlights that artificial intelligence (AI) is a significant driver of economic growth in the 21st century, with many companies involved in AI potentially undervalued on Wall Street [1][2]. Company Analysis Palantir Technologies - Palantir Technologies has over 800 clients leveraging its AI platforms to enhance business operations, indicating strong market demand [4][5]. - The company reported a 48% year-over-year revenue growth in Q2, with a net income margin of 33% and an adjusted free cash flow margin of 57%, showcasing its profitability [6]. - Palantir's high pricing strategy, exemplified by a $10 billion contract with the U.S. Army, reflects the substantial cost savings it provides to clients [7]. - The CEO aims for a 10x revenue growth, potentially reaching over $40 billion in annual revenue, which could lead to a market cap of $1 trillion based on current margins and growth multiples [8]. Advanced Micro Devices (AMD) - AMD is positioned as the second-leading supplier of graphics processing units (GPUs), crucial for AI advancements, with a current market cap of $250 billion [9]. - The company is targeting the edge computing market, projected to be worth $327 billion by 2033, by offering high-performance and energy-efficient chips [10]. - Despite a 14% year-over-year growth in Q2 data center revenue, management anticipates stronger demand with the launch of new GPU series [11]. - AMD's partnerships for AI infrastructure development and its global collaborations indicate its strategic positioning in the AI market [12]. - Analysts project an annualized earnings growth rate of 30% for AMD, suggesting the stock could potentially triple in five years, making it a candidate for reaching a $1 trillion market cap [13].

Group 1: Growth Strategy - American Tower Corporation (AMT) outlined its growth strategy at Citi's Global Technology, Media and Telecommunications Conference, indicating optimism in developed markets while facing challenges abroad [2] - In developed markets, AMT expects mobile data growth of 15%-20%, selectively deploying capital to capitalize on this growth [3] - The company anticipates recovery in Latin America post-2027, despite current short-term headwinds from carrier consolidation and currency pressures [3] Group 2: Financial Performance and Projections - AMT emphasizes cost discipline, a strong balance sheet, and strategic portfolio optimization, including divestments in Mexico and South Africa [4] - The company projects double-digit revenue growth at CoreSite, driven by surging growth in leasing activity and colocation [4] - Looking ahead, AMT expects mid-to-upper single-digit growth in AFFO per share, supported by rising connectivity demand and emerging technologies like AI and edge computing [4] Group 3: Company Overview - American Tower Corporation is a global REIT that owns, operates, and develops multitenant communications sites and interconnected U.S. data centers [5]

Core Insights - Cloudflare's stock has appreciated significantly, currently valued at around $220, which is over 14 times its IPO price of $15 from 2019 [2] - Cash from operations has increased from -$39 million in 2019 to nearly $450 million, representing a growth of more than 13 times [2] Financial Performance - In the last twelve months, cash flow from operations grew by 26% [3] - The company generates approximately $1.8 billion in revenue and around $450 million in net cash flow [4] - If Cloudflare maintains a 25% annual revenue growth rate, revenues could approach nearly $5 billion by 2030 [4] Profitability and Growth Drivers - Cloudflare's cash flows have increased due to robust revenue growth, enhanced margins, and operational leverage [3] - The company has consistently achieved annual revenue growth of 25-30%+ while improving operating and free cash flow margins [3] - Expansion into higher-margin sectors such as AI, edge computing, and developer platforms is enhancing profitability [3] Future Valuation Potential - Employing conservative peer multiples of 45-55 times free cash flow suggests a future valuation between $90 billion and $110 billion, compared to an existing market cap of around $73 billion [5] - This indicates that the stock could potentially increase by 50% from its current position [5] Market Position and Competitive Landscape - Cloudflare's recurring subscription base and growing demand for cybersecurity and edge services position it favorably in the market [5] - The company is a leader in AI-driven infrastructure, which supports its growth narrative [5]

Core Insights - Wowza is showcasing the capabilities of edge computing at IBC 2025, emphasizing the integration of its Streaming Engine with NVIDIA Jetson Orin Nano for enhanced streaming and AI features [1][5] Group 1: Technology and Features - Real-time object detection and classification are demonstrated using Jetson Orin Nano, capable of analyzing multiple HD video feeds reliably at the edge, even in secure environments [2] - On-device captioning and translation are generated instantly without relying on cloud services, ensuring accessibility and privacy [3] - The latest version of Wowza Streaming Engine is optimized for ARM architecture, particularly the Jetson Orin Nano, achieving up to 30% reduction in infrastructure costs [4] Group 2: Company Perspective - The CTO of Wowza highlights the flexibility of using compact devices like Jetson Orin Nano, allowing seamless streaming solutions across various infrastructures, optimizing performance, cost, and scalability [5] - Wowza is recognized for providing flexible video infrastructure solutions that cater to diverse applications, including surveillance, events, and entertainment, with a focus on deployment control and reliability [6]

Akamai Technologies (AKAM) 2025 Conference Summary Company Overview - **Company**: Akamai Technologies (AKAM) - **Date**: September 04, 2025 - **Key Speaker**: Tom Leighton, CEO and Founder Key Achievements and Financial Performance - Akamai had a strong year, exceeding initial plans and raising full-year guidance for both top and bottom lines [4] - Cloud infrastructure services (CIS) ended the previous year with an Annual Recurring Revenue (ARR) of approximately $250 million, with a target growth of 40% to 45% for the current year [4] - Security services, including API Security and Akamai Guardicore Segmentation, are also performing well, with an expected ARR growth of 30% to 35% [5] Delivery Business Insights - The delivery marketplace faced challenges due to competitors selling below cost, but the situation has stabilized with fewer competitors [11] - Traffic levels are recovering, contributing to a more stable delivery business, although not at the peak levels seen during the COVID-19 pandemic [13] - The potential for increased traffic growth exists with the rise of generative AI and video content [15][16] Security Business Strategy - Security now constitutes over half of Akamai's revenue, positioning the company as one of the largest security vendors globally, with revenues exceeding $2 billion [21] - The company is focusing on developing new capabilities, including the recently launched Firewall for AI, and is open to strategic acquisitions to enhance its security portfolio [22] - The security business is sensitive to episodic buying patterns, often driven by recent cyber incidents [27][28] Compute Business Developments - The acquisition of Linode has been transformational, expanding Akamai's capabilities and infrastructure [30] - The company is focusing on cloud infrastructure services, with significant investments in scalability and reliability [30] - Akamai anticipates a 40% to 45% growth in ARR for CIS, supported by a compelling value proposition and a large market opportunity [32][33] Capital Expenditure and Business Model - The capital intensity of the delivery business has decreased from 9% to 4% of revenue, while compute remains capital-intensive due to growth [46][47] - A dollar of compute CapEx is expected to generate approximately a dollar of revenue annually, indicating attractive economics [40][44] Market Position and Investor Perception - Akamai is perceived as undervalued by investors, with a strong focus on improving communication regarding its growth trajectory in cloud infrastructure and security [60][62] - The company is actively increasing investments in its sales organization to enhance go-to-market strategies [51][53] Future Outlook - The transition towards AI and generative AI is expected to create significant demand for compute resources, presenting both opportunities and security challenges [56][59] - Akamai is well-positioned to capitalize on these trends, with a focus on enhancing its infrastructure and security capabilities to meet evolving market demands [49][57]

Core Viewpoint - ADTRAN Holdings reported mixed Q2 2025 results, with revenue exceeding estimates but net income falling short, indicating a complex financial landscape influenced by both operational performance and macroeconomic challenges [2][3]. Financial Performance - The company recorded a net loss of $20.5 million or 24 cents per share in Q2 2025, an improvement from a net loss of $49.7 million or 63 cents per share in the same quarter last year, attributed to revenue growth [3]. - Total revenues increased to $265.1 million from $226 million year-over-year, driven by strong demand for cloud, AI, and edge computing solutions, surpassing the consensus estimate of $257 million [4]. - Network Solutions generated $219.5 million in revenues, up from $179.2 million in the prior-year quarter, while Services and Support revenues slightly decreased to $45.6 million from $46.8 million [5]. Operational Metrics - Non-GAAP gross margin for the quarter was 41.4%, a slight decrease from 41.8% in the prior-year quarter, while non-GAAP operating income rose to $8 million from $1.4 million year-over-year [6]. - Cash generated from operating activities in the first half of 2025 was $75.3 million, compared to $57.8 million in the same period last year, with cash and cash equivalents at $106.3 million as of June 30, 2025 [7]. Future Outlook - For Q3 2025, ADTRAN anticipates revenues between $270 million and $280 million, with a non-GAAP operating margin expected to range from 3% to 7% [8]. - Analysts have not made any earnings estimate revisions in the past two months, indicating a period of stability in expectations [9]. Investment Scores - ADTRAN Holdings has a strong Growth Score of A but is rated F on the Momentum Score, with an overall VGM Score of A, placing it in the top 40% for value investment strategy [10]. - The company holds a Zacks Rank of 4 (Sell), suggesting expectations of below-average returns in the coming months [11].