Core Insights - Recent earnings reports from major technology companies have raised investor concerns regarding returns on increased artificial intelligence (AI) spending, with mixed results across different firms [1] - Some companies have successfully leveraged growth opportunities from the ongoing AI boom, while others have not impressed investors [1] Company Summaries Apple (AAPL) - Evercore analyst Amit Daryanani maintains a buy rating on Apple with a price target of $330, while TipRanks' AI Analyst has an "outperform" rating with a target of $289 [3] - January App Store revenue increased by 7% year-over-year, but Gaming revenues fell by 3% for the third consecutive month due to tougher comparisons [4] - Other App Store categories saw double-digit growth, with Music up 21%, Other up 21%, Photo and Video up 18%, Social Networking up 11%, and Entertainment up 10% [5] - Services revenue grew by 14% in the December quarter, surpassing App Store growth of 6.5%, with better-than-expected revenue and EPS reported [6] - Daryanani expects continued benefits from faster-growing areas like Apple Pay and iCloud, despite less than 10% growth in App Store revenues [7] MongoDB (MDB) - Bank of America analyst Koji Ikeda reaffirms a buy rating on MongoDB with a price target raised to $500 from $480, while TipRanks' AI Analyst has an "outperform" rating with a target of $380 [8] - Ikeda expresses optimism about MongoDB's Atlas revenue growth, supported by a successful enterprise and product-led growth strategy, as well as an expanding AI product lineup [9] - MongoDB's database is noted for its speed, scalability, and document-based structure, differentiating it from traditional relational databases [10] - Despite a higher valuation compared to peers, Ikeda believes the premium is justified due to MongoDB's 30% Atlas growth versus 11% for competitors [11] Western Digital (WDC) - Western Digital reported better-than-expected fiscal second-quarter results, driven by strong demand for hard drives and flash storage amid the AI wave [13] - Bank of America analyst Wamsi Mohan maintains a buy rating with a price target of $345, while TipRanks' AI Analyst has an "outperform" rating with a target of $285 [13] - The company anticipates the AI and cloud storage market to grow at a CAGR of over 25% through 2030, with HDDs expected to gain market share [14] - Mohan highlights long-term growth targets, aiming for mid-20% CAGR in nearline exabytes and overall revenue growth above 20% CAGR [15] - Western Digital plans capital spending at 4% to 6% of annual revenue and aims for a free cash flow margin exceeding 30% [16]

Market Overview - U.S. stock markets began 2026 positively, with major indexes like the Dow, S&P 500, and Nasdaq Composite rising by 1.7%, 1.4%, and 1% respectively in January, while the Russell 2000 increased by over 5% [2] Investment Opportunities - Five stocks with favorable Zacks Rank and momentum for February include Amphenol Corp. (APH), Seagate Technology Holdings plc (STX), Ulta Beauty Inc. (ULTA), Coeur Mining Inc. (CDE), and KLA Corp. (KLAC), all rated as Zacks Rank 1 (Strong Buy) with a Momentum Score of A [3] Amphenol Corp. (APH) - Amphenol benefits from a diversified business model and holds a 33% market share in AI-powered data center interconnects, with strong demand for high-speed and power interconnect products [5][6] - Increased spending on defense technologies and strong demand across Commercial Air, Industrial, and IT Datacom sectors support top-line growth [6] - Expected revenue and earnings growth rates for the current year are 24.1% and 30.2% respectively, with a 1.2% improvement in earnings estimates over the last week [9] Seagate Technology Holdings plc (STX) - Seagate is experiencing strong demand driven by cloud and AI, with a focus on balancing performance and cost efficiency [10] - High-capacity nearline production is booked through 2026, ensuring strong demand visibility [11] - Expected revenue and earnings growth rates for the current year are 24.6% and 52.6% respectively, with a 6.5% improvement in earnings estimates over the last week [14] Ulta Beauty Inc. (ULTA) - Ulta's retail model combines mass, prestige, and luxury beauty, driving consistent customer engagement [15] - Strong loyalty programs and digital capabilities enhance customer relationships and repeat purchases [16] - Expected revenue and earnings growth rates for the current year are 6.1% and 11.4% respectively, with a slight improvement in earnings estimates [18] Coeur Mining Inc. (CDE) - Coeur Mining is a primary silver and gold producer with operations in the Americas, including key properties in Mexico, Bolivia, Nevada, and Alaska [19] - Expected revenue and earnings growth rates for the current year are 30.2% and over 100% respectively, with a 10.6% improvement in earnings estimates over the last month [20] KLA Corp. (KLAC) - KLA is benefiting from strong demand in the semiconductor industry, particularly in AI infrastructure and advanced packaging [21] - The company’s leadership in process control systems supports revenue growth amid increasing design complexity [22] - Expected revenue and earnings growth rates for the current year are 7.92% and 8.8% respectively, with a 1.2% improvement in earnings estimates over the last week [23]

Core Insights - Western Digital forecasts third-quarter revenue above Wall Street estimates, indicating strong demand for hard drives and flash storage for AI servers driving growth [1] Company Summary - The company is experiencing increased demand for its products, particularly in the AI server market, which is expected to contribute significantly to revenue growth [1]

Company Performance - ASML reported strong revenue of $11.4 billion, exceeding street expectations of $11.1 billion, although adjusted earnings per share of $8.61 missed expectations [5] - The backlog of orders was notably high at $15.7 billion, which is double the analyst expectations, indicating strong future revenue potential [5][6] - Seagate's revenue came in at $2.83 billion, surpassing the expected $2.75 billion, with adjusted earnings per share of $3.11 also exceeding expectations [14] - G Vernova's revenue reached $10.96 billion, exceeding the expected $10.21 billion, driven by a 35% year-over-year growth in electrification [20] Market Trends - The technology sector, particularly companies like Microsoft and Apple, is showing strong performance, contributing to the upward movement of the S&P 500 [3] - Demand for memory chips and data center spending is driving growth in the semiconductor industry, with ASML being a key player in this space [8][16] - The overall market is experiencing a rotation from broadening trades to a more focused market, which is seen as a positive sign for aggressive growth [3] Industry Insights - The AI data center buildout is significantly boosting demand for ASML's products, although sales to China are decelerating due to export restrictions [6][7] - Seagate's business is heavily reliant on data centers, with 87% of shipments related to this sector, indicating a healthy market for hard drives [16] - G Vernova is experiencing strong demand in electrification, with $2 billion in orders signed for data centers, although wind generation is facing challenges due to policy shifts [21][22]

Core Viewpoint - Sandisk stock has experienced a remarkable increase of 1,219% since its IPO, significantly boosting its market capitalization and providing substantial returns to early investors [2][5]. Company Performance - Sandisk's stock was initially priced at $38.50 during its IPO in February 2025 and has surged to $508 by January 28, 2026 [1]. - The company's market capitalization rose from approximately $6.7 billion to over $70 billion due to this stock performance [2]. - An investment of $1,000 at the IPO would have yielded profits of $12,190, illustrating the stock's impressive growth [2]. Recent Trading Activity - As of the latest closing price of $481.43, Sandisk shares increased by 5.52% in the extended session from January 27 to January 28, 2026, resulting in a total value of $12,500 for the initial $1,000 investment, equating to a profit of $11,500 [4]. Company Background - Sandisk, founded in 1988, was acquired by Western Digital in 2016 and spun off again in February 2025, marking its return to the stock market [5]. - The company specializes in flash memory, distinguishing itself from Western Digital's primary hard drive products [6]. Industry Context - The significant rise in Sandisk's stock is attributed to the growing demand for digital infrastructure driven by the ongoing artificial intelligence boom [6]. - Sandisk is currently collaborating with five major hyperscale customers, indicating its strategic positioning within the industry [7].

Seagate Technology Holdings plc (NASDAQ:STX) is one of the stocks in focus as Jim Cramer shared his weekly game plan. Cramer highlighted the stock’s surge due to an increase in demand, as he commented: After the close, we have our first big shortage stock, and that’s Seagate. This maker of storage and memory chips has been making a fortune because no one saw the massive surge in demand from the data center coming except for a handful of companies, including this one. Stock’s up over 25% for the year. You ...

Core Viewpoint - Seagate Technology's stock has experienced significant growth due to the increasing demand for memory devices driven by the artificial intelligence boom, with a price increase of 452% since April of the previous year [1][2]. Company Performance - Seagate Technology manufactures data storage devices, including hard drives and solid-state drives, which are essential for personal computers and data centers [2]. - The company's revenue for the third quarter rose to $2.62 billion, up from $2.16 billion [3]. - Gross margins improved to 39.4% from 32.9%, and net income increased from $305 million to $549 million, with earnings per share rising to $2.43 [4]. Future Expectations - Upcoming earnings are anticipated to show revenue of $2.75 billion, an 18% increase from the same period in 2024 [4]. - Earnings per share is expected to reach $2.84, a 40% increase from $2.03 in Q4'24, with annual revenue projected at $11.12 billion, up 22% year-over-year [5]. - Analysts predict annual revenue could reach $13.2 billion, reflecting an 18.7% year-over-year growth due to the AI boom and ongoing PC refresh [5]. Industry Context - Seagate's performance aligns with other companies in the memory industry, such as Kioxia, Micron, Sandisk, Western Digital, SK Hynix, Samsung, and Toshiba, which have also seen positive results [3]. - The memory industry is currently experiencing a boom, but there are concerns about potential volatility in the future [6]. Technical Analysis - The stock has been in a strong uptrend, forming an ascending channel, and is currently near the upper side of this channel [9]. - The stock remains above the 50-day and 100-day Exponential Moving Averages, with rising Relative Strength Index (RSI) and Percentage Price Oscillator (PPO) [10]. - There is a possibility of a pullback towards $300, but a breakout above the channel could lead to further gains, potentially reaching $400 [10].

Core Insights - The S&P 500 is projected to have a strong performance in 2025, currently up nearly 17%, surpassing the average annual return of about 10% [1] - Five companies in the index have significantly outperformed, each posting gains of over 200% [1] Top Performers - Sandisk (SNDK) is the top performer, with a stock price increase of 587% since its IPO in February, currently trading around $232 [2] - Western Digital (WDC) ranks second, up 283% for the year, focusing on hard drives and having spun off Sandisk earlier this year [4] - Seagate Technology Holdings (STX) is third, with a 226% increase, producing various data storage products [5] - Robinhood Markets (HOOD) is fourth, up about 225%, operating a commission-free trading platform benefiting from increased retail investing [8][9] - Micron Technology (MU) rounds out the top five, up 222%, specializing in high-performance memory and storage solutions, driven by demand from AI workloads [10] Company Profiles - Sandisk, headquartered in Milpitas, California, specializes in NAND flash technology for data storage, currently facing a shortage of such devices [3] - Western Digital, based in San Jose, California, focuses on hard drives and has a market cap of $61 billion [5] - Seagate Technology, located in Fremont, California, also produces various data storage solutions and has a market cap of $61 billion [7] - Robinhood Markets, based in Menlo Park, California, operates an online brokerage platform and has a market cap of $108 billion [10] - Micron Technology, based in Boise, Idaho, manufactures DRAM and NAND storage devices, with a market cap of $323 billion [12]

Group 1 - Seagate Technology Holdings plc (NASDAQ:STX) is recognized for its hard drives, solid-state drives, and storage solutions catering to personal, gaming, and business needs [2] - Jim Cramer highlighted Seagate as a stock that has experienced significant growth due to supply constraints in the data storage market, indicating a strong demand that was previously underestimated [1][2] - Cramer expressed a positive outlook on Seagate, suggesting it could perform exceptionally well in the current market environment, particularly due to its supply-constrained status [2] Group 2 - The data storage sector, including companies like Seagate, Sandisk, and Western Digital, is characterized by a shortage of supply, leading to increased stock prices and growth potential [1] - Despite the potential of Seagate, there are opinions that certain AI stocks may offer greater upside potential with less downside risk, indicating a competitive investment landscape [2]

Core Insights - Seagate's shares increased by over 10% following a strong fiscal Q1 2026 earnings report, with revenue rising 21% year-on-year to $2.63 billion and adjusted EPS reaching $2.61, surpassing Wall Street expectations [1] Group 1: Operational Performance - Seagate delivered a record 182 exabytes of hard-drive capacity in the quarter ending October 3, 2025, with 159 exabytes from nearline drives, highlighting the importance of cloud exposure in revenue growth [3] - The average capacity per drive increased to 14.6 terabytes, marking a 26% year-on-year rise in nearline drive capacity, which supports margin expansion and contributes to the strong EPS results [4] - The company shipped over 1 million Mozaic HAMR drives during the September quarter, indicating a transition from proof-of-concept to commercial production [5] Group 2: Market Position and Future Outlook - Five major cloud service providers have approved Seagate's Mozaic 3+ HAMR platform, with additional qualifications expected to enhance supply visibility and support upgraded guidance [7] - Seagate's advancements in drive density, product qualification, and manufacturing capabilities suggest a pivotal moment for the company, aligning with the increasing demand for AI-driven storage solutions [8] - The current market enthusiasm for Seagate may indicate the beginning of a sustained structural uptrend, driven by next-generation HAMR drives and deeper cloud qualifications [9]