Key Takeaways Micron Q3 gross margin rose to 39%, beating guidance by 250 basis points on stronger pricing and volumes. DRAM and NAND demand, tight supply, and low inventories drove sequential margin expansion. MU guides Q4 gross margin to 42%, citing favorable pricing and high-value memory product demand.Micron Technology (MU) posted a strong rebound in profitability in the third quarter of fiscal 2025. The company reported a gross margin of 39%. This represents an increase of 110 basis points from the p ...

Industry Overview - The Zacks Computer-Storage Devices industry is expected to experience robust growth due to factors such as digital transformation, edge computing, AI workloads, and enterprise cloud adoption [1] - The increasing demand for secure storage solutions driven by rising cyberattacks will further enhance the need for sophisticated data storage [1] - Major players in the industry include Western Digital Corporation (WDC), NetApp, Inc. (NTAP), and Teradata Corporation (TDC) [1] Trends Impacting the Industry - The rapid proliferation of AI is reshaping the tech landscape, leading to increased demand for high-speed, high-capacity, and low-latency storage solutions [3] - Traditional storage architectures are being replaced by NVMe-based SSDs and software-defined storage to meet the data throughput required by AI applications [3] - Cloud storage technologies are evolving, with companies leveraging AI and machine learning to optimize storage solutions and manage increasing data complexity [4] Market Conditions - Worldwide IT spending is projected to reach $5.61 trillion in 2025, reflecting a 9.8% increase from 2024, with the Devices segment expected to grow by 10.4% [5] - Despite positive IT spending forecasts, escalating trade tensions and macroeconomic uncertainties pose challenges to the industry [5] - The Zacks Computer-Storage Devices industry has underperformed the S&P 500, declining 32.4% over the past year compared to the S&P 500's gain of 9.7% [10] Company Highlights - **Western Digital (WDC)**: Focused on cloud end-markets, WDC is addressing supply chain challenges and expects strong data center demand to drive sales. The company has secured long-term deals through mid-2026 [17][18] - **Teradata (TDC)**: TDC's innovations in AI and hybrid cloud are gaining traction, with partnerships with major cloud service providers enhancing its offerings. The company has launched the Enterprise Vector Store to support AI applications [21][22] - **NetApp (NTAP)**: NTAP is experiencing increased demand for its all-flash arrays and expects to capture more market share. The company reported five-fold year-over-year growth in its AI business for the fiscal fourth quarter of 2025 [27][29]

Core Viewpoint - Seagate Technology Holdings plc (NASDAQ: STX) is recognized as a leading supplier of hard disk drives (HDDs), which are essential for data storage in large-scale data centers, holding nearly 90% of the data in these facilities [1] Group 1: Company Overview - Seagate is a major player in the HDD market, with its products being critical for data storage solutions [1] - The company benefits from the fact that over 80% of data in large-scale data centers is stored on HDDs, highlighting the importance of its technology in the industry [1]