Global Research ab 28 January 2026 Positivo Memory cost pressure is sector-wide but manageable, diversification cushions margins; Feedback from LAIC 2026 We hosted Positivo Tecnologia at the LAIC Conference and discussed the sharp increase in memory (RAM/SSD) costs, the challenges of passing prices through across retail, corporate and government channels, and how the company's increasingly diversified mix—services, servers and recurring solutions—helps absorb margin pressure. The conversation also covered e ...

Spring, Texas-based Hewlett Packard Enterprise Company (HPE) delivers solutions that allow customers to capture, analyze, and act upon data seamlessly. Valued at $29 billion by market cap, the company provides servers, advanced storage products, high-performance computing, AI-driven platforms, and more. Shares of this global technology leader have underperformed the broader market over the past year. HPE has gained 1.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15%. ...

Group 1 - Dell Technologies Inc. has seen its stock decline over 30% from its high nearly three months ago, raising concerns about its margins due to rising component costs from suppliers like Micron [1] - The company is a significant buyer of storage systems and components, which are currently in tight supply, leading to increased prices that could impact Dell's profitability [1] - Despite the potential for further stock decline, there is confidence in the leadership of Michael Dell, suggesting that the stock may stabilize around the 110-115 range, and it remains up for the year [2] Group 2 - While Dell is recognized as a potential investment, there are other AI stocks that are perceived to offer greater upside potential and lower downside risk [3]

Core Viewpoint - Super Micro Computer (SMCI) stock has experienced significant volatility, with a current price reflecting a 51% correction from its 52-week high of $66.44, primarily due to a revenue miss in Q1 [1] Financial Performance - For Q1 FY26, SMCI reported revenue of $5 billion and expects full-year revenue of $36 billion [3] - The company has guided for Q2 revenue between $10 billion and $11 billion, which exceeds analyst consensus by over $2 billion [5] Market Sentiment - Despite the bearish sentiment, SMCI stock is considered attractively valued and could be a candidate for a short squeeze in 2026 [2] - SMCI is currently the third-most-shorted stock by hedge funds, indicating strong negative sentiment in the market [1] Operational Insights - SMCI has a strong global presence, operating in over 100 countries, and is pursuing aggressive expansion with new facilities in the U.S., Taiwan, the Netherlands, Malaysia, and the Middle East [3][6] - The company aims to scale production to 6,000 racks per month by the end of fiscal 2026 [6] Recent Stock Performance - Following a significant earnings miss in Q1 and cash used in operations of $918 million, SMCI stock has corrected by 45% over the last six months, presenting a potential accumulation opportunity [4]

Core Insights - Celestica, Inc. (CLS) reported quarterly revenues of $3.19 billion, reflecting a year-over-year increase of 27.8%, surpassing management's guidance and the Zacks Consensus Estimate by $170 million [1][8] Group 1: Company Performance - The growth in revenue was driven by strong demand in the Connectivity and Cable Solution portfolio, which saw net sales surge 43.2% year over year to $2.41 billion, primarily due to the demand for 800G and 400G switching products [3][8] - Celestica's management is optimistic about future revenue growth, projecting revenues between $3.325 billion and $3.575 billion for the next quarter, indicating a potential 36% year-over-year growth [4][8] - The company's shares have increased by 215.6% over the past year, significantly outperforming the industry growth of 93.7% [7] Group 2: Market Opportunities - The global data center networking market is valued at $38.49 billion in 2024, with a projected compound annual growth rate of 17.2% from 2025 to 2033, presenting a substantial growth opportunity for Celestica [4] - Celestica is actively collaborating with industry leaders like AMD and Broadcom to enhance its product offerings in the expanding AI infrastructure market [2] Group 3: Competitive Landscape - Competitors such as Jabil, Inc. and Flex Ltd. are also performing well, with Jabil reporting revenues of $8.3 billion, up from $6.96 billion year over year, and Flex generating $6.8 billion, up 4% year over year [5][6] - Jabil's growth was driven by demand in Capital Equipment and AI-related Cloud and Data Center Infrastructure, while Flex's diversified portfolio across multiple industries remains a key strength [5][6] Group 4: Valuation and Earnings Estimates - Celestica trades at a forward price-to-earnings ratio of 37.68, higher than the industry average of 24.13 [9] - Earnings estimates for 2025 have increased by 6.3% to $5.90, and for 2026, they have risen by 20.9% to $8.20 over the past 60 days [10]

Core Insights - Hewlett Packard Enterprise Company (HPE) is a technology firm recognized for its servers and computer hardware, and it has diversified into cloud and AI computing [1] Group 1: Company Overview - HPE has expanded its business model beyond traditional hardware to include cloud and AI solutions, reflecting a broader trend in the technology sector [1] Group 2: Investment Focus - The article emphasizes a focus on income investing through various financial instruments, including common shares, preferred shares, and bonds, indicating a strategic approach to investment [1]

Core Viewpoint - Hewlett Packard Enterprise Company (NYSE:HPE) has shown strong financial performance in fiscal Q4 2025, but faced some challenges in revenue guidance for the upcoming quarter, leading to its removal from Evercore ISI's "Tactical Outperform" list while maintaining a long-term positive outlook [2][3]. Financial Performance - HPE reported record fiscal Q4 2025 earnings with revenue of $9.7 billion, reflecting a 14% year-over-year increase [3]. - Non-GAAP operating profit increased by 26%, indicating strong profitability [3]. - Free cash flow for the quarter was $1.9 billion, exceeding expectations, which supports the company's solid fiscal performance [4]. Future Outlook - Based on the positive momentum, HPE raised its fiscal 2026 non-GAAP diluted EPS guidance and increased the midpoint of its free cash flow outlook [5]. - The company plans to sell its remaining 19% stake in H3C for approximately $1.4 billion, with the deal expected to close in the first half of 2026 [5]. - Proceeds from the sale are intended to help reduce net leverage to around 2x by the end of fiscal 2027 [5]. Strategic Moves - HPE has completed the acquisition of Juniper Networks, which is expected to enhance its position in the networking sector and create a new industry leader [6]. - Integration efforts are progressing well, with positive feedback from employees, customers, and partners [6]. Company Overview - HPE is a global IT company focused on edge-to-cloud solutions, offering a portfolio that includes servers, storage, networking, software, and services to support business operations [7].

Core Insights - Hewlett Packard Enterprise Company (NYSE:HPE) is recognized as one of the 11 Best Low Priced Dividend Stocks to Buy according to analysts [1] - Argus has raised its price target for HPE from $25 to $30 while maintaining a Buy rating, citing temporary softness in server sales and potential growth in the AI market [2] - HPE reported Q4 2025 revenues of $9.7 billion, a 14% increase year-over-year, with an annualized revenue run rate of $3.2 billion, reflecting a 63% increase from the previous year [3] Financial Performance - The company demonstrated improved cash generation with operating cash flow rising to $2.5 billion and free cash flow reaching $1.9 billion [4] - HPE returned $271 million to shareholders through dividends and buybacks [4] Strategic Developments - HPE and Nvidia launched a new AI factory lab in Grenoble, France, aimed at helping customers test and validate performance on EU-based infrastructure [5] - The partnership expanded AI factory offerings to include HPE Junior Networking on-ramp and data center interconnection solutions [5] Company Overview - HPE is a global IT provider known for its servers, storage systems, networking solutions, hybrid-cloud offerings, and consulting services [6]

Core Viewpoint - The AI bull market is experiencing a resurgence, with new stocks leading the rally instead of traditional giants like NVIDIA and Microsoft [1][2]. Group 1: Alphabet Inc. - Alphabet Inc. (NASDAQ: GOOG) is positioned as a leader in the AI race, with a market cap of $3.8 trillion and significant advancements in AI technology, including the Gemini V3 upgrade and Waymo's driverless car service [3]. - Analysts from JP Morgan and Scotiabank have raised their price targets for Alphabet to $336 and $340, respectively, reflecting strong earnings performance in 2025 [3]. - Despite a recent four-day decline, GOOG shares show strong upside potential, trading above the 50-day and 200-day simple moving averages (SMAs) since July [6]. Group 2: TTM Technologies Inc. - TTM Technologies (NASDAQ: TTMI) is a key player in the AI sector, focusing on high-density printed circuit boards (PCBs) essential for AI systems, with a market cap nearing $7 billion and $2.7 billion in sales over the last year [7]. - The company reported a 22% year-over-year increase in quarterly revenue, driven by AI data center sales, and has a backlog in aerospace and defense approaching $1.5 billion [7]. - TTMI shares have surged nearly 170% year-to-date, with strong technical indicators suggesting continued upward momentum [9]. Group 3: Celestica Inc. - Celestica (NYSE: CLS) has seen significant growth due to demand for its products in AI data centers, achieving record quarterly EPS of $1.58 and revenue of $3.16 billion in Q3 2025 [10]. - The company's market cap has reached $35 billion, with annual sales projected to exceed $11 billion, and Citigroup has upgraded the stock to Buy with a price target of $375 [10]. - CLS shares are above both the 50-day and 200-day SMAs, indicating a strong uptrend, although recent momentum has shown signs of weakening [12]. Group 4: Amphenol Corp. - Amphenol (NYSE: APH) is a major supplier in the AI data center industry, providing essential components like connectors and cables, with a market cap of $173 billion [13]. - The company reported record revenue of $6.19 billion and EPS of $0.93 in Q3, surpassing analyst expectations by 12% and 17% respectively [13]. - APH shares have doubled year-to-date, with technical indicators suggesting continued strength despite recent volatility [16].

Core Insights - Major tech companies, including Amazon, Alphabet, and Microsoft, have committed nearly $3 trillion to AI infrastructure over the past two years, with Microsoft planning $80 billion in capex for fiscal 2025, Alphabet raising its 2025 guidance to $75 billion, and Amazon's AWS projected to exceed $100 billion annually by 2026 [1][2] Group 1: Investment Commitments - Amazon, Alphabet, and Microsoft are investing heavily in AI infrastructure to secure market dominance [1] - Microsoft plans to allocate $80 billion for capital expenditures in fiscal 2025, primarily for data centers [1] - Alphabet has increased its 2025 investment guidance to $75 billion, while Amazon's AWS is on track for over $100 billion in annual revenue by 2026 [1] Group 2: Market Sentiment and Analyst Projections - Wall Street responds positively to upward revisions in earnings, driving stock prices to all-time highs [2] - Analysts are projecting 20% to 30% growth in cloud and AI revenue over the next five years [2] Group 3: Accounting Practices and Concerns - Michael Burry criticizes the AI hype, suggesting that companies are under-depreciating their assets, particularly GPUs and servers [3][4] - Burry highlights that the industry could be understating depreciation by $176 billion from 2026 to 2028, potentially inflating earnings by about 20% [6] - The practice of extending the useful life of assets reduces annual depreciation expenses, artificially boosting near-term earnings [6][5] Group 4: Timing of Asset Utilization - The timing of these accounting practices is strategic, as many chips will not reach the latter part of their assumed useful lives until 2026 to 2027, coinciding with the peak of the current hype cycle [7]