Core Insights - Hewlett Packard Enterprise (HPE) reported revenue of $9.14 billion for the quarter ended July 2025, reflecting an 18.5% increase year-over-year [1] - The earnings per share (EPS) was $0.44, down from $0.50 in the same quarter last year, but exceeded the consensus estimate of $0.43 [1] - The reported revenue surpassed the Zacks Consensus Estimate of $8.78 billion, resulting in a revenue surprise of +4.07% [1] Financial Performance Metrics - Revenue from Financial Services was $886 million, exceeding the average estimate of $870.59 million, with a year-over-year change of +0.8% [4] - Revenue from Corporate Investments and other was $194 million, slightly below the average estimate of $199.88 million, showing a significant year-over-year decline of -26% [4] - Revenue from Hybrid Cloud reached $1.48 billion, compared to the estimated $1.51 billion, marking a +14.2% increase year-over-year [4] - Server revenue was reported at $4.94 billion, surpassing the average estimate of $4.67 billion, with a year-over-year growth of +15.4% [4] - The elimination of intersegment net revenue and other was reported at -$98 million, slightly better than the estimated -$99.71 million, but showed a year-over-year decline of -25.8% [4] Earnings from Operations - Earnings from Operations in Financial Services were $88 million, exceeding the average estimate of $79.73 million [4] - Earnings from Operations in Hybrid Cloud were $87 million, below the average estimate of $90.8 million [4] - Earnings from Operations in Server were $317 million, slightly below the average estimate of $324.32 million [4] - Earnings from Operations in Corporate Investments and other were reported at -$14 million, in line with the average estimate of -$14.02 million [4] Stock Performance - HPE shares have returned +14.1% over the past month, outperforming the Zacks S&P 500 composite's +3% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

I am reiterating my buy rating on CDW Corporation (NASDAQ: CDW ). The broadening of this hardware refresh cycle is an important development for CDW, as it means higher-value infrastructure spending, which provides anotherI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality compa ...

Core Viewpoint - Shares of Hewlett Packard Enterprise Co (HPE) have increased by 3% to $21.66 following a Morgan Stanley upgrade to "overweight" from "equal weight," with a price target raised to $28 from $22, driven by the company's acquisition of Juniper Networks for $14 billion and positive AI demand outlook [1]. Group 1 - HPE's stock has shown volatility since hitting a two-year low of $11.96 on April 4, currently fluctuating between $20 and $22, with a peak of $24.66 in January [2]. - Year-to-date performance has improved, with shares returning to positive territory after today's increase [2]. - Analyst sentiment is mixed, with nine out of 18 analysts recommending a "hold," indicating potential for further bullish upgrades if bearish sentiment diminishes [2]. Group 2 - Options for HPE are currently reasonably priced, with a Schaeffer's Volatility Index (SVI) of 47%, placing it in the low 27th percentile of its annual range, suggesting low volatility expectations among options traders [3].

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Greater China Technology Hardware - **Region**: Asia Pacific - **Industry View**: In-Line [4][6] Core Insights - **Voltronics**: - Plans to extend EV charging facilities expertise to offer HVDC (800V) power solutions for data centers [6] - Anticipates strong demand for HVDC power architecture to support AI computing, particularly for NVDA Rubin Ultra platform starting in 2H27 [6] - Power Supply Units (PSUs) will be upgraded to 18-30kW with three-phase AC input and outputs of +800V DC (NVDA) and ±400V DC (non-NVDA) [6] - **TECO**: - Collaborating with Hon Hai to provide new power solutions for data centers, aiming to expand into the US and Middle East markets [6] - Expects an 8-10% price increase for power products due to tariffs, with ~50% of the tariff costs passed to customers [6] - Emphasizes the need for US production of certain power products, including busways and junction boxes [6] - **Delta Electronics**: - Expected to benefit from upgrades in power solutions and data center infrastructure development [6] Market Demand and Trends - **UPS Demand**: - Significant demand for large-scale, online UPS systems exceeding 20kW, with leading vendors like Schneider and Eaton experiencing two-year order backlogs [6] - This backlog suggests potential business overflow to outsourcing partners and tier-two vendors [6] - **Cost Structure**: - Data center white space (IT equipment) constitutes ~60% of total construction costs, while power facilities in gray space account for an additional 25-30% [6] - Proven delivery capabilities and multiple production bases globally (US, China, Southeast Asia) could lead to a 30% savings in time to market for data center infrastructure projects [6] Risks and Considerations - **Upside Risks**: - Faster-than-expected global economic growth and falling raw material prices could improve margins [9] - **Downside Risks**: - Global economic slowdown, ongoing component supply tightness, rising raw material prices, and potential margin contraction due to higher operating expenses or faster average selling price (ASP) erosion [9] Valuation Methodology - **Delta Electronics Inc.**: - Base case valuation using residual income methodology with key assumptions including a cost of equity of 8%, medium-term growth rate of 14%, and terminal growth rate of 3% [7] Additional Insights - **Production and Tariffs**: - TECO's strategy includes producing certain power products in the US to mitigate tariff impacts [6] - **Investment Banking Relationships**: - Morgan Stanley has investment banking relationships with several companies in the technology hardware sector, which may influence research objectivity [4][16][18] This summary encapsulates the critical insights and data from the conference call, highlighting the strategic directions of key players in the Greater China Technology Hardware industry and the associated market dynamics.

Summary of the Conference Call on Greater China Technology Hardware Industry Overview - **Industry**: Greater China Technology Hardware - **Date**: August 18, 2025 - **Analysts Involved**: Sharon Shih, Howard Kao, Duan Liu, Yang Liu, Eddy Wang, CFA Core Insights and Arguments - **Market Performance**: The industry view is rated as "In-Line" by Morgan Stanley, indicating expectations of performance in line with the broader market benchmark [2][46]. - **Hon Hai (Foxconn)**: - Price target set at NT$250, with a current rating of "Overweight" [5]. - Monthly shipment data shows significant growth, with August 2025 shipments reaching 3,000 units, representing a 69% supply share [8]. - Revenue projections indicate a steady increase across product segments, with a notable rise in cloud and networking revenues [9]. - **FII (Foxconn Industrial Internet)**: - Price target set at Rmb52.50, with a strong revenue guidance for Q3 2025, expecting over 15% YoY growth in Telecom & Networking Equipment and over 100% YoY growth in Cloud Equipment [10][11]. - Cloud server revenue is projected to contribute over 75% of total server revenue, indicating a strong market position [10]. Additional Important Information - **Shipment Estimates**: - Hon Hai's GB200/300 rack output for 2025 has been raised by approximately 4,000 to a total of 34,000 units [14]. - The notebook build estimate for Q3 2025 has been increased by 6% to 33.6 million units, reflecting a slight quarter-over-quarter increase [24]. - **Valuation Methodology**: - Hon Hai's valuation is based on a residual income model with a cost of equity of 8.5%, a medium-term growth rate of 13%, and a terminal growth rate of 3% [25]. - FII's valuation is derived from a multi-stage residual income model, with a medium-term growth rate of 16% and a terminal growth rate of 5% [26]. - **Risks**: - Upside risks include better-than-expected iPhone sell-through and faster progress in AI server business [27]. - Downside risks involve geopolitical developments and lower-than-expected demand in 5G and data centers [27]. Conclusion The conference call highlighted a positive outlook for the Greater China Technology Hardware sector, particularly for key players like Hon Hai and FII, with significant growth projections and strategic insights into market dynamics. The analysts emphasized the importance of monitoring shipment data and revenue contributions from emerging technologies such as cloud computing and AI.

新浪科技讯 8月15日下午消息，今日举办的2025戴尔科技峰会上，戴尔科技展示了公司从数据中心和多 云到终端体验革新的一体化技术图景，戴尔科技集团全球资深副总裁吴冬梅指出："当今企业面临的不 是生存问题，而是一场全新的'进化'。要想在不确定中保持稳健、在变动中抓住增长，就必须持续构建 企业的'创新韧性'。" 据吴冬梅介绍，戴尔科技正依托领先的技术实力与深厚的本地洞察，帮助企业打造可随时扩展、敏捷交 付，并能驱动持续创新的数字底座，把不确定性转化为增长的新动能。 责任编辑：刘万里 SF014 聚焦企业转型的核心路径，戴尔科技正以"现代化架构与多云智联"及"智能化技术底座"帮企业加速架构 升级，提升运营韧性与创新效率。同时，戴尔科技也展示了其"现代化智能终端"的技术能力，为企业重 构现代化生产力提供创新方案。 戴尔科技集团大中华区信息基础架构解决方案事业部总经理陈洁强调："在数智化变革深刻重塑企业运 营底座的当下，现代化IT架构已成为企业面向未来的战略支点。戴尔科技聚焦算力升级、存力破局、数 据智能三大关键维度，帮助企业打造现代化架构，实现数据价值的持续转化，从容应对快速演进的技术 与市场格局。" 戴尔科技集团大 ...

Summary of Foxconn Industrial Internet Co. Ltd. Earnings Call Company Overview - **Company**: Foxconn Industrial Internet Co. Ltd. - **Industry**: Greater China Technology Hardware - **Market Cap**: US$95,655 million - **Stock Rating**: Overweight - **Price Target**: Rmb33.00 - **Current Price**: Rmb36.59 Key Financial Results - **2Q25 Operating Profit**: Rmb8,687 million, a 24% beat to estimates, up 32% QoQ and 78% YoY [1] - **Operating Margin**: Expanded by 0.2 percentage points QoQ and 1 percentage point YoY to 4.3% [1] - **Revenue**: Rmb200 billion, 7% below estimates [1] - **Net Profit**: Rmb6,883 million, or EPS of Rmb0.35, 1% higher than expectations [1] Revenue Growth Areas - **Cloud Equipment Revenue**: Increased by over 50% YoY in 2Q25, with AI server revenue growing over 60% YoY [2] - **CSP Customer Revenue**: Grew by over 150% YoY [2] - **Telecom and Networking Equipment**: Shipments increased significantly, with 800G network switch revenue in 2Q25 being three times that of the full year 2024 [3] - **Precision Component Business**: Grew by 17% YoY in 1H25, driven by AI smartphone demand [3] Future Outlook - **Management Expectations**: Anticipates continued growth in shipment volume for GB200 server rack projects due to improved integration yields [2] - **Margin Trend and Business Outlook**: Awaiting management comments on margin trends and business outlook for 2H25/2026 [6] Valuation and Risks - **Valuation Methodology**: Based on a multi-stage residual income (RI) valuation model with a 10% cost of equity and a medium-term growth rate of 14% [9][10] - **Upside Risks**: Faster project wins in IIoT solutions, lower competition, and stronger macro outlook [10] - **Downside Risks**: Slow project wins, increased competition, and weaker macro outlook [10] Additional Information - **Fiscal Year Ending**: December 2024 - **Projected EPS**: Rmb1.17 for FY24, increasing to Rmb2.19 by FY27 [4] - **EBITDA Projections**: Expected to grow from Rmb33,432 million in FY24 to Rmb56,244 million by FY27 [4] This summary encapsulates the key points from the earnings call, highlighting the financial performance, growth areas, future outlook, and valuation risks associated with Foxconn Industrial Internet Co. Ltd.

Summary of Conference Call Notes Industry Overview - **Industry**: Greater China Technology Hardware - **Analysts**: Howard Kao, Sharon Shih, Irene Yen from Morgan Stanley Taiwan Limited Key Points 1. **Decline in Rack Shipments**: GB200 NVL72 rack shipments fell to approximately 2,000 units in July from about 2,500 units in June across major ODMs (Hon Hai, Quanta, and Wistron) [1][2] 2. **Reason for Decline**: The decline in shipments is attributed to a production shift at Wistron, moving compute tray production from Taiwan to Mexico. This is part of Wistron's capacity adjustment strategy to enhance production flexibility in response to potential unfavorable tariff announcements [2] 3. **Impact of Production Shift**: The transition to the Mexico plant is causing near-term production shortfalls. However, it is expected that once the transition is complete, production will increase, and the compute trays produced in Mexico will be compliant with USMCA regulations for the US market [2] 4. **Upcoming Earnings Call**: Quanta's 2Q25 earnings call is scheduled for August 12, 2025, at 3 PM HKT [3] Additional Insights - **Industry View**: The overall industry view remains in-line, indicating that the performance of the technology hardware sector is expected to align with broader market trends [4] - **Analyst Certification**: Analysts Howard Kao and Sharon Shih certify that their views on the companies discussed are accurately expressed and have not received compensation for specific recommendations [11] - **Investment Banking Relationships**: Morgan Stanley has investment banking relationships with several companies in the technology hardware sector, which may influence research objectivity [5][13][15] Important Disclosures - **Conflict of Interest**: Investors should be aware of potential conflicts of interest due to Morgan Stanley's business relationships with companies covered in the research [5][12] - **Stock Ratings**: The report includes stock ratings for various companies within the industry, with a distribution of ratings indicating a mix of Overweight, Equal-weight, and Underweight classifications [21][25] Conclusion The conference call highlighted a significant decline in rack shipments due to production shifts, with expectations for recovery post-transition. The industry outlook remains stable, and upcoming earnings calls will provide further insights into company performance. Investors should consider the potential conflicts of interest when interpreting the research findings.

Group 1 - The stock price of Songjing Technology (01079) fell by 10.38% on August 7, reaching HKD 0.19 per share with a trading volume of HKD 3.9695 million [1] - Songjing Technology Holdings Limited is a global technology company engaged in the design and manufacturing of image display adapters and power supplies, as well as the development of high-performance personal computer components and innovative peripheral technology products [1] - The company has over 300 employees across 13 locations worldwide, with sales, marketing, and technical support centers in North America, Europe, and Asia, and distributors in over 50 countries [1] Group 2 - As of the mid-2024 financial report, Songjing Technology reported total revenue of HKD 130 million and a net loss of HKD 6.3221 million [2]

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: Greater China Technology Hardware and Semiconductor Production Equipment in Japan - **Industry View**: - Greater China Technology Hardware: In-Line [1] - Semiconductor Production Equipment: Attractive [1] Core Insights and Arguments - **Delta Electronics (2308.TW)**: - **Bull Case**: The bull case has now become the base case for Delta, indicating strong confidence in future performance [11] - **AI Server Power Supply**: - Projected revenue from AI server power supply is expected to grow significantly, with a YoY increase of 188% in 2024 and continuing growth through 2027 [11] - Contribution to total revenue is projected to rise from 2.3% in 2023 to 12.6% by 2027 [11] - **Cooling Revenue**: - AI server cooling revenue is expected to see substantial growth, with a YoY increase of 233% in 2024 and 865% in 2025 [12] - Cooling fans and liquid cooling systems are key components driving this revenue [12] - **AVC (3017.TW)**: - **AI Server Cooling Contribution**: - Significant growth in AI server-related revenue, projected to increase from US$25 million in 2023 to US$1.293 billion by 2027 [15] - Gross margin for AI server-related revenue is expected to remain stable at around 35% [15] - **Market Position**: AVC is positioned to capture a significant share of the AI server market, with a projected 40% supply share for cold plates [15] Additional Important Insights - **Semiconductor Equipment Market**: - **Lasertec**: Downgraded to Underweight due to a plateau in the mask SPE market, with indications of capex cuts from advanced logic makers [19] - **SCREEN Holdings**: Forecasts flat WFE market at ~$110 billion for 2025, with stronger sales to foundries and memory makers [20] - **Advantest**: Reported a 90.1% YoY increase in sales for 1Q, raising guidance for the fiscal year [21] - **Tokyo Electron**: Cut guidance for fiscal year 2026 due to capex plan revisions and changes in NAND investment plans [22] Conclusion - The conference call highlighted a positive outlook for AI server-related products in the Greater China Technology Hardware sector, with significant growth expected in both power supply and cooling solutions. The Semiconductor Production Equipment market is facing challenges, particularly in advanced lithography, but certain companies are still showing strong performance and growth potential.