2026-01-29 02:43Summary of Earnings Call Company and Industry - Companies Mentioned: STX (Seagate Technology), ASML, TXN (Texas Instruments), QRVO (Qorvo) - Industry: Technology, specifically focusing on data storage, semiconductors, and electronics Key Points and Arguments STX (Seagate Technology) - Earnings Performance: - Revenue of $2.83 billion, up 22% year-over-year, compared to a previous quarter's growth of 21% and market expectations of $2.74 billion, which was approximately 18% growth [7][6] - EPS of $3.11, exceeding market expectations of $2.83; Non-GAAP gross margin at 42.2% vs. expected 40.8% [7] - Market Commentary: - Management described an "exceptionally strong" data center environment, expecting demand to offset typical seasonal declines [9] - Nearline capacity fully allocated through CY26, with plans to accept orders for 1H27 [12] - Pricing Trends: - Revenue per TB remains stable with a modest increase in $/TB expected to continue, indicating a potential shift in pricing dynamics [12] - Growth Drivers: - Incremental storage-server demand linked to AI workloads, with data centers remaining the core driver of growth [9] TXN (Texas Instruments) - Earnings Performance: - Q4 revenue of $4.423 billion, up 10.4% year-over-year, aligning with market expectations [24][26] - Q1 guidance midpoint of $4.50 billion, indicating a 2% quarter-over-quarter increase and 10.6% year-over-year growth [24] - Market Commentary: - Management expressed optimism about industrial recovery and data center strength, with improving orders and backlog [23] - Data center business expected to grow approximately 70% year-over-year [26] - Pricing Trends: - Management anticipates low single-digit price declines (~2-3%) in 2026, emphasizing the impact of annual negotiations [26] QRVO (Qorvo) - Earnings Performance: - Q4 revenue and EPS were better than expected, but Q1 guidance was approximately 12% below market expectations [32][35] - Market Commentary: - Management attributed revenue gaps to weakness in Android and planned exits from lower-margin models [35] - Concerns about the sustainability of profitability amidst declining Android sales and competition [41] - Growth Drivers: - Focus on transitioning to higher-quality, more durable programs, with expectations of gross margins above 50% despite revenue declines [42] ASML - Earnings Performance: - Stock price increased by 5% due to bookings of €13 billion, significantly exceeding expectations [45] - Market Commentary: - Management highlighted strong progress with customers and revenue guidance implying 4-20% year-over-year growth for 2026 [46] - Growth Drivers: - Continued demand in semiconductor capital expenditures, with a focus on high-volume manufacturing tools [46] Additional Important Insights - Market Sentiment: - The overall sentiment in the technology sector appears positive, driven by strong earnings reports and optimistic guidance from key players [1][2] - Investment Considerations: - The discussions around pricing stability and growth in data center demand suggest potential investment opportunities in companies like STX and TXN, while QRVO faces challenges that may impact its valuation [18][22][42]