August 21, 2025 04:00 AM GMT IT Hardware | North America How We're Thinking About Enterprise Hardware/Storage into Earnings and Beyond July Q results for enterprise HW should modestly outperform expectations. AI spend is robust in compute/networking, PCs were solid in 2Q but decelerating in 2H, and storage is likely to show 2Q strength, though questions remain LT (DC modernization?). Upgrade HPE to OW; favor HPE/DELL into earnings. Key Takeaways With this report, Erik Woodring is assuming research coverage ...

Key Takeaways SMCI stock tumbled 25.6% after Q4 earnings of $0.41 per share missed expectations.Margins remain under pressure from competition, client delays, and rising production costs.SMCI's AI-focused server expertise and energy-efficient systems support long-term prospects.Super Micro Computer (SMCI) stock has lost 25.6% following its lower-than-expected fourth-quarter fiscal 2025 earnings. Super Micro Computer reported fourth-quarter fiscal 2025 non-GAAP earnings of 41 cents per share, which missed th ...

Core Viewpoint - BofA Securities analyst Wamsi Mohan maintains a Buy rating on Dell Technologies with a price target of $165, anticipating strong AI server momentum ahead of the upcoming fiscal second-quarter earnings [1] Financial Projections - Mohan projects Dell to report revenue of $29.4 billion and EPS of $2.35, both at the high end of guidance, with AI server revenue of $7.3 billion and orders of $5 billion, resulting in a quarter-end backlog of $12.1 billion [2] - For fiscal 2026, Mohan expects full-year AI server sales to reach $20.7 billion, exceeding Dell's current guidance of over $15 billion, with a potential increase to at least $18 billion [3] Revenue Growth and Margins - Mohan models a 36% year-over-year growth in Infrastructure Solutions Group (ISG) revenue, driven by AI server shipments, with ISG margins projected at 9.3% in the second quarter, improving sequentially through fiscal 2026 [4] - The third-quarter revenue guidance is forecasted between $27 billion to $28 billion, with EPS of $2.55 ± 10 cents, and fiscal 2026 EPS expected at $9.50 ± 20 cents on revenue of $103 billion to $107 billion [4] Client Solutions Group Performance - On the Client Solutions Group (CSG) side, revenue is expected to be $13 billion, reflecting a 5% year-over-year increase, driven by an 8% growth in commercial PC sales due to pre-tariff demand pull-ins [5] - Long-term earnings potential is projected to exceed $19 per share by 2030, with a 15% CAGR from 2025 to 2030, primarily driven by AI servers, margin improvements from product mix, and the adoption of AI PCs [5]

J P M O R G A N Asia Pacific Equity Research 08 August 2025 Servers 10 key takeaways from APAC's OCP Summit We attended APAC's OCP (Open Compute Project) Summit in Taipei on Aug 5-6. There was an opening keynote, four parallel breakout sessions, and a product exhibition with 36 companies participating. The key topics were centered around four key pain points of AI server development – 1) power consumption increase (high-voltage power supply); 2) thermal management (liquid cooling); 3) networking (scale up a ...

14 August 2025 | 9:01AM HKT Lenovo (0992.HK): Jun-Q better than expected; PC on both shipment and ASP increase, with AI servers ramping up; Buy Lenovo June-Q revenues increased by 22% YoY, or 10% / 7% higher than our / Bloomberg consensus with solid growth across the board: IDG (Intelligent Devices Group, mainly PC) revenues increased by 18% YoY, or 10% ahead of our estimates; ISG (Infrastructure Solutions Group, mainly general servers and AI servers) revenues increased by 36% YoY, or 11% ahead of our estim ...

Core Insights - Dell Technologies (DELL) shares have increased by 23% year to date, outperforming the broader Zacks Computer and Technology sector's growth of 14.6% and the Zacks Computer - Micro Computers industry's decline of 7.6% [1][10] - The growth is primarily driven by strong demand for AI-related products and an expanding partner network [2][9] Financial Performance - In Q1 FY26, Dell reported record orders of $12.1 billion and a backlog of $14.4 billion, indicating robust demand for AI products [3] - Projected revenues for Q2 FY26 are expected to be between $28.5 billion and $29.5 billion, suggesting a year-over-year growth of 16% [12] - Non-GAAP earnings are anticipated to be $2.25 per share, indicating a 15% growth at the mid-point [13] AI Business Growth - Dell is experiencing significant growth in its AI-related business, particularly in AI servers, driven by digital transformation and interest in generative AI applications [2] - The company has introduced updates to its AI Data Platform, enhancing capabilities for managing AI workflows [6] - New server offerings, including PowerEdge R7725 and R770 featuring NVIDIA RTX PRO 6000 GPUs, are designed to accelerate AI workloads [8] Partner Network Expansion - Dell's expanding partner base includes notable companies such as Lowe's, NVIDIA, Microsoft, and Meta Platforms, contributing to its growth [9][11] - The partnership with Lowe's aims to enhance customer experiences through advanced AI and PC technology [11] Competitive Landscape - Despite its growth, Dell faces stiff competition in the server market from companies like Hewlett-Packard and Super Micro Computers [17] - Hewlett-Packard's server business has seen a 6% year-over-year growth, reaching $4.06 billion, driven by demand for AI-optimized servers [18] Valuation Metrics - Dell shares are considered undervalued, with a forward 12-month price-to-sales ratio of 0.89 compared to the sector average of 6.83 [14]

5 August 2025 | 11:08PM HKT Hon Hai (2317.TW): July revenues +7% YoY; AI Server and Smartphones support double digit % YoY growth in Aug-Oct ; Buy Hon Hai's July revenues increased +7% YoY or +14% MoM to NT$614bn, 6% higher than our estimates (report link). If measured by USD, July revenues went up by 17% YoY/ 15% MoM, per management, reflecting FX impact. On MoM, all four segments are in positive MoM, with PC is the strongest one, driven by major brand customers' promotion season (back to school), followed ...

Super Micro Computer (NASDAQ: SMCI) is set to report its fourth quarter fiscal year 2025 results after the bell on Tuesday, August 5. Ahead of the release, the stock rose 2.81% on Monday to close at $58.23.Analysts expect Super Micro to deliver around $6.13 billion in fourth-quarter revenue and report earnings of $0.75 per share. The company previously projected revenue between $5.6 billion and $6.4 billion, with non-GAAP EPS in the range of $0.40 to $0.50.However, sentiment has grown more bearish ahead of ...

28 July 2025 | 6:49PM HKT Taiwan ODM/Brands: 3-month Preview: Apple supply chain in new product cycle; AI servers in model transition; PC high base We preview 3-month revenues for 10 companies in the AI servers / PCs supply chain, and update our estimates and TPs for Quanta, Wiwynn, Wistron, Gigabyte, ASUS, Inventec, Pegatron and Compal within. As highlighted in our June revenues review, we are positive on: (1) Apple's supply chain on the back of upcoming new models ramp up with two consecutive years of for ...

Foxconn has sold the former GM factory it has owned for three years after failing to stand up any meaningful, large-scale electric vehicle production there. The pivot marks the second major failure of Foxconn to deliver on its promises to help revive U.S. manufacturing. The iPhone-maker once promised to build a giant LCD factory in Wisconsin — a project that Donald Trump called the “eighth wonder of the world” during his first term — and wound up underdelivering to an extreme degree. Foxconn says the buye ...