+1(212)902-8618 | michael.ng@gs.com Goldman Sachs & Co. LLC Katherine Murphy +1(212)902-1151 | katherine.a.campagna@gs.com Goldman Sachs & Co. LLC 8 January 2026 | 7:00PM EST Equity Research Americas Technology: Hardware: CES 2026 investor meetings (DELL/HPQ/PENG) key takeaways We attended CES 2026 in Las Vegas and hosted investor meetings on January 7-8 with DELL, HPQ, and PENG. Key takeaways include: (1) While industry PC demand may be challenged from higher pricing, DELL expects it will be able to delive ...

Summary of Hon Hai Precision (2317.TW) Conference Call Company Overview - **Company**: Hon Hai Precision (also known as Foxconn) - **Ticker**: 2317.TW - **Date of Report**: January 5, 2026 Key Financial Highlights - **December 2025 Revenues**: NT$862.9 billion, representing a **2% month-over-month** and **32% year-over-year** increase - **4Q25 Revenues**: NT$2.6 trillion, showing a **26% quarter-over-quarter** and **22% year-over-year** growth, exceeding consensus by approximately **8%** and management's guidance from November 2025 [1] - **1Q26 Revenue Forecast**: Expected to decline by **23% quarter-over-quarter** but still show a **22% year-over-year** increase, aligning with consensus expectations due to seasonal softness in consumer electronics [1] Growth Drivers - **Key Growth Segment**: Cloud and networking products accounted for over **40%** of total revenues in 4Q25, driven by the ramp-up of GB200/300 rack production [1] - **iPhone 17 Sales**: Stronger-than-expected sell-through of iPhone 17 contributed positively to revenue growth [1] - **AI Servers**: Management indicates that revenues from AI servers are on a sequential uptrend and are expected to be a significant growth driver in 2026 [1] Market Position and Valuation - **Industry Leadership**: Hon Hai is well-positioned to capitalize on AI server product cycles across multiple platforms, supported by its scale, logistics capabilities, and vertical integration [1] - **Valuation**: Current valuation is considered attractive, with a target price set at NT$320, based on an **18x** 2026E EPS, reflecting a strong sales growth and profit margin outlook [2][13] Investment Ratings - **Current Rating**: Buy - **Expected Total Return**: **39.8%**, including a **3.3%** expected dividend yield [2] Risks - **Downside Risks**: Potential risks that could hinder stock performance include: 1. Slower-than-expected demand for iPhones 2. Increased competition from peers 3. Weaker execution on new business initiatives 4. Adverse impacts from COVID-19 or other macroeconomic factors [14] Additional Insights - **Market Capitalization**: NT$3,274.61 billion (approximately US$104.37 billion) [2] - **Earnings Summary**: - 2023A Net Profit: NT$142.1 billion, EPS: NT$10.25 - 2024A Net Profit: NT$152.7 billion, EPS: NT$11.01 - 2025E Net Profit: NT$205.2 billion, EPS: NT$14.77 - 2026E Net Profit: NT$247.3 billion, EPS: NT$17.80 - 2027E Net Profit: NT$284.1 billion, EPS: NT$20.46 [4] This summary encapsulates the key points from the conference call regarding Hon Hai Precision, highlighting its financial performance, growth drivers, market position, investment outlook, and associated risks.

Vi e w p o i n t | See Appendix A-1 for Analyst Certification, Important Disclosures and Research Analyst Affiliations. 02 Jan 2026 10:21:57 ET │ 14 pages North America Hardware & Storage Key Focus Items At CES: Hardware Demand Amidst Rising Component Prices; AI Demand Momentum CITI'S TAKE As we approach CES 2026, the hardware landscape continues to exhibit positive demand in datacenter infrastructure, driven by AI-related workloads, alongside more a more muted environment in devices markets given spending ...

Core Insights - Dell Technologies is experiencing significant growth driven by increasing demand for cloud infrastructure, particularly within its Infrastructure Solutions Group (ISG) [1] Group 1: Financial Performance - ISG revenues grew 24% year over year to $14.10 billion in Q3 FY26, marking seven consecutive quarters of double-digit growth [1][9] - The company booked $12.3 billion in AI server orders in Q3 FY26, with year-to-date orders reaching $30 billion [2] - Dell ended Q3 FY26 with a record backlog of $18.4 billion in AI server orders, indicating strong demand for its AI solutions [2][9] - The Zacks Consensus Estimate for fiscal 2026 earnings is $9.89 per share, reflecting a 21.50% year-over-year growth [12] Group 2: Product and Market Position - Dell's AI server business is a key contributor to its cloud infrastructure growth, supported by a diverse customer base including Neoclouds and Tier 2 cloud service providers [2] - The company is enhancing its cloud infrastructure offerings through its Dell-IP storage portfolio, which includes products like PowerStore, PowerMax, and PowerFlex [3] - Dell announced a new supply deal for NVIDIA GB300 GPUs and data center equipment to support an AI cloud collaboration with Microsoft [4] Group 3: Competitive Landscape - Dell Technologies faces strong competition in the cloud market from major players like Microsoft and Alphabet [4] - Microsoft reported $49.1 billion in cloud revenues for Q1 FY26, a 26% increase, while Alphabet's Google Cloud saw a 46% sequential increase in backlog [5][6] Group 4: Valuation and Stock Performance - Dell's shares have gained 4% over the past six months, underperforming the broader Zacks Computer & Technology sector, which returned 19.7% [7] - The forward 12-month Price/Sales ratio for Dell is 0.68X, significantly lower than the sector average of 6.60X, indicating that Dell shares are undervalued [10]

Hewlett Packard Enterprise (NYSE: HPE stock) tumbled 9% on Friday after the company revealed that its blockbuster AI server story is hitting speed bumps. The development came as HPE reported its Q4 ea... ...

Dell Technologies (NYSE:DELL) 2025 Conference December 02, 2025 01:35 PM ET Company ParticipantsJeff Clarke - Vice Chairman and COOConference Call ParticipantsDavid Vogt - AnalystDavid VogtRight, I think we're live. So thanks for everyone joining. Welcome back to the UBS Tech Conference. I'm David Vogt. I'm one of the Tech Analysts here at UBS, and we're excited to have with us today Dell Technologies, Jeff Clarke, Vice Chairman, Chief Operating Officer. Before we get into the hard-hitting questions, I need ...

Dell provided investors with what they wanted to hear regarding guidance.Dell Technologies (DELL +6.91%) stock has been declining over the last month as investors have become skeptical of the artificial intelligence (AI) sector. The AI server provider mostly dispelled those fears with its earnings announcement last night, however. Shares jumped in response. As of 11:25 a.m. ET, Dell stock had rallied 5.8% even after its fiscal 2026 third-quarter revenue slightly missed analyst estimates. That's because the ...

Core Insights - OpenAI is partnering with Foxconn to design and build AI data center components in the U.S., marking a significant step in its infrastructure development plans [1][2] - The partnership aims to accelerate infrastructure deployment and secure long-term U.S. capacity, with OpenAI gaining early access to evaluate and potentially purchase systems produced by Foxconn [2][3] - OpenAI plans to co-develop multiple generations of AI servers and manufacture core components at Foxconn's U.S. facilities, which are located in several states including Wisconsin, Ohio, Texas, Virginia, and Indiana [3] Financial Commitments - OpenAI has announced spending commitments of approximately $1.4 trillion, raising concerns about its ability to generate sufficient profit to justify these investments [4] - The company anticipates reaching $20 billion in annualized revenue by the end of this year and hundreds of billions by 2030 [4] Previous Partnerships - OpenAI has a pending $100 billion agreement with Nvidia for phased investments as it builds out its infrastructure, along with cloud partnerships with major companies like Microsoft, Google, and Amazon [5] - The collaboration with Foxconn adds a manufacturing layer that localizes OpenAI's supply chain and may expedite deployment [6] Foxconn's Role - Foxconn is recognized for assembling Apple's iPhones and has expanded into AI and automotive manufacturing, building server racks tailored for AI workloads [6] - The company has a controversial history in the U.S., including a failed project in Wisconsin that was intended for flat-panel displays, which is now being repurposed for an AI data center by Microsoft [7]

Core Viewpoint - FIT's 3Q25 revenue and net profit growth of 13% and 9% YoY is in line with expectations, driven by AI server momentum and automobility synergy, with a record-high gross profit margin (GPM) of 23.5% [1][2] Group 1: Financial Performance - 3Q25 revenue and net profit growth of 13% and 9% YoY, supported by strong AI product demand (+33% YoY) and automobility business (+116% YoY), while smartphone and consumer segments faced declines (-20% and flat YoY) [2] - Record-high GPM of 23.5%, an increase from 17.8% in 2Q25 and 21.7% in 3Q24, attributed to higher revenue contributions from AI server and automobile businesses [2] Group 2: Future Outlook - Management reiterated a positive 2025 outlook with high-single-digit revenue growth and GPM around 20%, detailing expectations for 4Q25 and FY25E [3] - Cloud/datacenter expected to deliver high-20% to 30%+ YoY growth in 4Q/FY25E due to new AI server rack ramp-up and general server upgrades [3] - Automobility projected to grow mid-double-digit to 40% YoY in 4Q/FY25E, while consumer interconnects are expected to remain flat YoY [3] Group 3: Long-term Guidance - Management provided updates on AI product launches, including advanced connectors and cooling solutions, indicating robust AI demand and a strong product pipeline [4] - Guidance for FY27-28E includes mid-20% YoY revenue growth and a cloud/datacenter sales mix of low/mid/high-20% in FY26/27/28E, enhancing long-term profitability [4]

Core Viewpoint - Super Micro Computer Inc (NASDAQ: SMCI) experienced a nearly 8.0% decline in stock price following a downward revision of its Q1 revenue forecast, attributed to delays in customer delivery schedules for significant AI deals [1] Group 1 - The company revised its Q1 revenue forecast downward due to delays in customer delivery schedules [1] - The delays are specifically related to major AI deals, indicating potential challenges in the AI server market [1] - The stock market reaction reflects investor concern over the company's ability to meet revenue expectations in the face of these delays [1]