Core Viewpoint - Hillman Solutions Corp. is set to announce its earnings results for the thirteen and fifty-two weeks ended December 27, 2025, on February 17, 2026, at 8:30 a.m. Eastern Time, along with its 2026 guidance [1]. Company Overview - Hillman Solutions Corp. is a prominent provider of hardware-related products and merchandising solutions, serving home improvement, hardware, and farm and fleet retailers across North America [5]. - The company is recognized for its strong customer service and has established a competitive advantage through direct-to-store shipping and a dedicated in-store sales and service team of over 1,200 professionals [5]. - Hillman's product portfolio includes hardware solutions (fasteners, screws, nuts, and bolts), protective solutions (work gloves, jobsite storage, and protective gear), and robotic and digital solutions (key duplication and tag engraving) [5]. - The company has a well-established distribution network and frequently receives vendor of the year recognition from top customers [5]. Earnings Call Details - The earnings call will be hosted by President and CEO Jon Michael Adinolfi and CFO Rocky Kraft [2]. - The call will include a listen-only webcast available at a specified link, and sell-side analysts must register to participate in the live Q&A session [3]. - A replay of the webcast will be accessible approximately one hour after the presentation concludes [3]. - The earnings release and quarterly results will be filed with the SEC and made available on Hillman's investor relations website before the presentation [4].

Core Insights - The rise of "One Person Company" (OPC) is driven by advancements in artificial intelligence (AI), enabling individuals to leverage diverse tools and technologies to operate businesses independently [1][3][4] - The traditional model of requiring large teams for business operations is being disrupted as AI reduces the complexity and cost of various tasks, allowing individuals to manage multiple roles [3][4][16] - The entrepreneurial landscape is evolving, with a diverse range of OPC founders, including recent graduates, seasoned entrepreneurs, and those with previous startup experience, all utilizing AI to innovate and create [6][7][10] Industry Trends - The OPC model is gaining traction as AI democratizes access to technology, allowing individuals to handle tasks that previously required larger teams or specialized service providers [4][10] - The operational efficiency of OPCs is enhanced by AI, which can participate in nearly all aspects of business processes, from ideation to marketing [4][16] - Different cities are witnessing varying focuses in OPC development, with Shenzhen emphasizing hardware products and global market outreach due to its strong supply chain advantages [14][15] Policy and Support - Recent policy shifts in major cities like Shenzhen reflect a growing recognition of the long-term value of OPCs, with support mechanisms transitioning from broad subsidies for large enterprises to targeted assistance for individual entrepreneurs [19][20] - The government is adopting a role as an "ecological gardener," fostering a conducive environment for innovation by providing tailored support to meet diverse entrepreneurial needs [19][20]

Core Insights - Alibaba has officially launched the latest version of Tongyi Qianwen, integrating over 400 AI functionalities into its core applications, marking a significant transition from a conversational model to a super AI capable of executing real-world tasks [1] - Lenovo plays a crucial role as a long-term partner, providing essential server infrastructure and AI terminal devices, which has led to significant growth in Lenovo's server business [1][3] - The collaboration between Alibaba and Lenovo has evolved from basic hardware supply to a deep integration of customized engineering capabilities for large-scale AI clusters, highlighting Lenovo's importance in Alibaba's AI ambitions [4] Alibaba's AI Development - The new version of Tongyi Qianwen demonstrates remarkable accuracy in complex financial data analysis and legal document generation, showcasing its advanced capabilities [1] - The deployment of AI is shifting from cloud-based solutions to edge devices, indicating a readiness for AI to be integrated into everyday technology [1] Lenovo's Role and Business Impact - Lenovo's ISG (Infrastructure Solutions Group) has become vital in supporting Alibaba's AI infrastructure, particularly through innovations like liquid cooling technology, which enhances energy efficiency in data centers [4] - Lenovo's global supply chain resilience has provided Alibaba with a buffer against geopolitical uncertainties, ensuring the continuity of critical computing power delivery [4] Financial Performance and Market Position - Lenovo's non-PC business revenue has reached 46%, with ISG revenue surging by 65%, driven by strong demand for AI computing infrastructure from cloud service providers [7] - The high demand for AI servers, which have significantly higher average prices and profit margins compared to traditional servers, has improved Lenovo's profitability structure [7] - Lenovo is leveraging its operational capabilities gained from supporting Alibaba to create solutions for traditional industries, enhancing its service business and overall profitability [8] Industry Collaboration and Future Outlook - The partnership between Alibaba and Lenovo reflects a maturation of the Chinese tech industry, moving from competition to deep collaboration [8] - As the AI landscape evolves, the integration of software and hardware becomes essential, positioning Lenovo as a key supplier in the AI era [8]

Core Viewpoint - The global technology hardware industry is facing a severe "profit defense battle" due to skyrocketing storage component prices, leading to significant differentiation within the industry. While storage chip manufacturers are experiencing explosive profit growth, downstream equipment manufacturers are forced to make difficult choices between sacrificing profit margins and raising prices to curb demand [1]. Group 1: Price Surge and Profit Impact - Samsung reported a more than 30% increase in average selling prices for DRAM and approximately 20% for NAND chips, resulting in a profit increase of over two times, with this price trend expected to continue through 2026 [1]. - The price surge is driven by AI demand, described by IDC as an "unprecedented storage chip shortage," posing a crisis for equipment manufacturers [1]. - Apple and HP stocks have reacted negatively, with Apple down 4.4% at the start of 2026, making it one of the weakest stocks in the Nasdaq 100 index, while HP's stock hit its lowest level since November 2020 [1]. Group 2: Divergent Stock Performance - The past year has seen a stark divide in stock performance, with storage companies like SanDisk, Micron Technology, and Western Digital emerging as market winners, with SanDisk leading the S&P 500 index with over 60% gains entering 2026 [2]. - In contrast, hardware giants are struggling, with Apple only rising 8.6% in 2025 and continuing to decline, while HP's market value shrank by nearly one-third in 2025 and fell another 6.8% at the start of 2026 [2]. - Dell's stock has dropped 28% since reaching a historical high in October of the previous year, indicating the tough situation for hardware companies [2]. Group 3: Profit Erosion and Cost Pressures - Storage components account for 10% to 20% of the material costs in consumer hardware products, leading to rapidly downgraded profit expectations for companies [3]. - HP is particularly affected, with estimates indicating that rising storage costs will reduce its adjusted EPS by $0.30 in 2026, and market expectations for HP's net EPS have been downgraded by 7.1% in the past month [3]. - Even Apple, with strong pricing power, is expected to be impacted by the significant rise in storage component costs over the next two years [3]. Group 4: Structural Supply Shortage - The current supply shortage is characterized as a strategic reallocation of global silicon wafer capacity, differing from typical cyclical shortages, indicating that price pressures are unlikely to dissipate quickly [5]. - The extreme scarcity of supply is expected to persist in the short term, affecting semiconductor manufacturers that supply chips for smartphones, leading to downgrades for Qualcomm and Arm by Mizuho Securities and Bank of America [5]. - Among the hardware companies, only Dell is viewed positively due to its server business growth, which can partially offset the headwinds from rising storage costs [5].

Summary of J.P. Morgan's PC and Server Market Analysis Industry Overview - The analysis focuses on the **PC and server markets**, highlighting trends and forecasts for shipments and demand in the coming years. Key Points on PC Market - **Shipment Growth Forecasts**: - Adjusted global PC shipment growth forecast for 2025 is **+8%**, while a decline of **-9%** is expected in 2026 [1] - **Demand Trends**: - Anticipated downside in PC unit demand due to **memory-driven product price hikes** [1][4] - A significant **20%+ increase** in product prices has been noted recently, impacting consumer PC demand [4] - Forecasts indicate **10%** decline in consumer PC shipments and **7%** decline in commercial PC shipments for 2026 [11] - **Commercial PC Demand**: - Muted refresh demand is expected this year, with a potential pause in demand from **2Q26** onwards [1][11] - **Competition**: - Increased competition in mainstream PCs due to new model launches from major players like **Dell** and **Apple** [4] Key Points on Server Market - **General Server Demand**: - Strong demand from **US Cloud Service Providers (CSPs)** is expected to continue into 2026, particularly for storage servers driven by AI inference activities [4] - Forecasted **30%+ growth** in CSP server shipments, offset by a single-digit decline in enterprise server demand [11] - **AI Server Growth**: - Notable ramp-up in **GB300 server shipments** is expected, with estimates of **50-70k NVL72 rack shipments** this year, driven by strong AI server demand [4] - Anticipated growth in **ASIC server demand**, particularly for TPU servers [4] - **Overall Server Shipment Growth**: - Total server shipment growth forecast for 2026 is **14.6%**, up from previous estimates of **+4.6%** [11] Key Companies Mentioned - **Positive Outlook**: - Companies such as **Wiwynn**, **Hon Hai**, and **Quanta** are favored in the server ODM space [1] - For server components, **ASPEED**, **Delta**, **Jentech**, and **Lotes** are highlighted [1] - **Cautious Outlook**: - Companies like **ASUSTek**, **Micro-Star**, and **Compal** are viewed with caution due to expected challenges in the PC segment [1] Additional Insights - **Memory Component Costs**: - A significant increase in memory component costs is expected, leading to at least **double YoY memory costs** in the upcoming quarters [4] - **Market Dynamics**: - The report indicates a prolonged supercycle in general servers driven by AI demand, with potential risks from component supply constraints [4] This summary encapsulates the critical insights from the J.P. Morgan analysis on the PC and server markets, providing a comprehensive overview of expected trends, challenges, and opportunities within the industry.

Summary of 4Q25 CIO Survey – Key Points Industry Overview - The survey focuses on the **US Tech** industry, particularly the **IT budget outlook** for 2026, highlighting trends in **Software**, **Communications**, **Hardware**, and **IT Services** sectors [2][40]. Core Insights 1. **IT Budget Growth Expectations**: - IT budget growth is expected to moderate from **+3.5% in 2025 to +3.4% in 2026**, a decline of **8 basis points** [2][40]. - Sequentially, the growth expectation for 2026 deteriorated from **+3.8% YoY** in the previous quarter [2][40]. 2. **Sector-Specific Trends**: - **Software**: Expected to see a modest acceleration in growth to **+3.8%** in 2026, up **9 basis points YoY** [2][40]. - **Communications**: Growth is expected to decelerate to **+2.2%**, down **27 basis points YoY** [2][40]. - **Hardware**: Anticipated growth is only **+1.0%**, a significant drop of **58 basis points YoY** [2][40]. - **IT Services**: Expected to grow by **+2.0%**, a slight decrease of **3 basis points YoY** [2][40]. 3. **Regional Insights**: - US CIOs expect budget growth of **+3.5%**, while EU counterparts anticipate **+3.1%**, indicating a narrowing gap between the two regions [2][40]. 4. **CIO Sentiment**: - The **1-year up-to-down ratio** for budget revisions fell to **0.5x**, indicating a more cautious outlook among CIOs [2][40]. - The percentage of CIOs expecting budget increases dropped to **17%**, while those expecting decreases rose to **36%** [2][40]. 5. **AI and IT Spending**: - **Artificial Intelligence** remains the top priority for CIOs, with **68%** planning to engage service providers for AI projects [40]. - **81%** of CIOs expect to have GenAI-based workloads in production by the end of 2026, up from **79%** in the previous quarter [40][37]. Additional Insights 1. **Hiring Expectations**: - **33%** of CIOs expect overall hiring to decrease in 2026, while **18%** expect an increase, reflecting a cautious hiring outlook [6][40]. - **63%** of CIOs believe AI-related IT spending will impact hiring plans, with a significant portion expecting hiring to decrease [6][40]. 2. **K-Shaped IT Budget**: - CIOs may be reallocating budgets from less strategic areas to prioritize AI-related investments, indicating a shift in spending dynamics [6][40]. 3. **Vendor Insights**: - Microsoft, Google, and Amazon are expected to gain the largest incremental share of GenAI spend in 2026, with Microsoft leading at **35%** [8][11][40]. - The survey indicates a trend towards consolidating IT spending with fewer vendors, particularly in software [6][40]. 4. **Concerns Over Hardware Spending**: - Hardware budgets are projected to grow at the slowest rate since 2009, raising concerns about potential demand destruction in the sector [18][40]. 5. **Long-Term Outlook**: - CIOs' confidence in the long-term spending environment has moderated, with only **38%** expecting IT spending as a percentage of revenue to increase over the next three years [40]. Conclusion The 4Q25 CIO Survey indicates a cautious outlook for IT budgets in 2026, with sector-specific deceleration, particularly in Hardware and Communications. Despite the excitement surrounding AI, the anticipated growth in IT budgets does not fully align with expectations, suggesting a need for strategic reallocations and a focus on consolidating vendor relationships.

Summary of Key Points from the Conference Call Industry and Company Overview - **Industry**: China Multi-Asset and Equity Markets - **Focus**: The impact of the 15th Five-Year Plan (FYP) on China's economy and stock market, particularly in sectors like Technology, Healthcare, Internet, and Basic Materials Core Insights and Arguments 1. **Positive Catalysts from the 15th FYP**: The FYP aims to consolidate the economy, endorse technological developments, and build a strong domestic market, which is expected to positively influence the market through 2026 [2][24][26] 2. **Export Growth**: China's share of global exports increased by 0.4 percentage points year-on-year to 15.0% in 2025, with expectations for continued growth in 2026 due to comprehensive value chains and automation in manufacturing [3][38] 3. **EPS Growth Projections**: HSI EPS growth is projected to rise to 9.1% year-on-year in 2026 from 2.2% in 2025, driven by reduced competition in the internet sector and upward revisions in other sectors [4][44] 4. **Sector Upgrades and Downgrades**: Basic Materials upgraded to Overweight due to rising commodity prices, while Consumer is downgraded to Neutral and Auto to Underweight due to low consumption prospects and retail sales declines [5][49] 5. **Economic Outlook**: A measured policy expansion is anticipated, with a fiscal stimulus of approximately RMB 1 trillion and rate cuts expected to support economic growth [6][12] Additional Important Insights 1. **K-Shaped Growth Pattern**: The economy is experiencing a K-shaped recovery, with the new economy performing well while traditional sectors lag behind [6][18] 2. **Government Debt and Fiscal Policy**: The fiscal deficit rose to 4% in 2025, with limited room for further expansion in 2026 due to rising government gearing [14][41] 3. **Youth Unemployment**: High youth unemployment remains a concern, hovering around 20%, while overall unemployment is less of a concern due to rising retirement numbers [18][22] 4. **Trade Relations**: The signing of a China-US trade deal has improved confidence in international trade, which is expected to boost export growth in 2026 [32][36] 5. **Sector Preferences**: The technology sector is prioritized, with expectations for continued upgrades in AI server supply chains and hardware, while the software sector is expected to recover earnings as IT budgets normalize [28][29] Conclusion The conference call highlighted a positive outlook for China's economy and stock market driven by the 15th FYP, with specific sectoral shifts and growth projections. The focus on technological innovation and export competitiveness positions China favorably for the coming years, despite challenges in traditional sectors and youth unemployment.

Core Insights - The iShares Semiconductor ETF (SOXX) focuses specifically on semiconductor companies, while the State Street Technology Select Sector SPDR ETF (XLK) offers broader exposure to the technology sector at a lower cost [1][5] Fund Comparison - SOXX consists of 30 positions entirely within the technology sector, heavily weighted towards semiconductors, with major holdings in Advanced Micro Devices, Broadcom, and Nvidia [2] - XLK holds approximately 70 stocks, covering a wide range of technology subindustries, including hardware, software, IT services, and communications equipment, with top positions in Nvidia (13.72%), Apple (12.82%), and Microsoft (11.17%) [3] Performance Metrics - SOXX has achieved a five-year compound annual growth rate (CAGR) of 21.1%, but has also faced significant volatility, including a maximum drawdown of over 45% in 2022 [6] - XLK has a five-year CAGR of 18.6% and a maximum drawdown of 33.5%, indicating greater stability compared to SOXX [7] Cost and Yield - The expense ratio for SOXX is 0.34%, while XLK is significantly lower at 0.08%, with yields of 0.62% for SOXX and 0.55% for XLK [4][6] Investor Suitability - More conservative investors may prefer XLK due to its lower fees and reduced historical drawdowns, while aggressive investors might be attracted to SOXX's higher returns and concentrated sector focus [8]

Group 1 - The Vanguard Information Technology ETF (VGT) offers a low-cost entry into the tech sector with an expense ratio of 0.09% and a share price of approximately $757 as of January 5, 2026 [2][5] - The ETF tracks the MSCI US Investable Market Index (IMI)/Information Technology 25/50 index, holding over 300 stocks, with significant weightings in major companies like Nvidia (16.6%), Apple (15.3%), and Microsoft (12.4%) [5][6] - Despite a concentration in a few large stocks, the ETF provides exposure to various subcategories within the tech sector, including semiconductors, software, and hardware [7] Group 2 - The tech sector is experiencing a significant boom, driven by innovations such as artificial intelligence, making it a compelling investment opportunity for both short- and long-term strategies [1][3][8] - Current high valuations in tech stocks do not deter their importance in investor portfolios, although there are risks associated with capital expenditures and potential economic slowdowns [9]

Despite a year marred by geopolitical tensions, DeepSeek fears, and persistent whispers of a tech bubble, the AI trade defied skeptics to anchor the stock market in 2025.With the Nasdaq-100 finishing up 20.2%, I/O Fund analyst Beth Kindig has released a review of the year’s top 10 tech stocks, offering a blueprint for identifying the next wave of market leaders in 2026.The ‘Real’ AI Trade EmergesThe 2025 market was defined by a decisive rotation toward the “physical” layers of the AI stack. While early boom ...