Latest news with #hyperscalecloud
Yahoo
30-07-2025
- Business
- Yahoo
Cantor upgrades Seagate despite soft outlook on rising cloud demand
-- Cantor Fitzgerald upgraded Seagate Technology to Overweight from Neutral, saying the hard drive maker remains well-positioned to benefit from rising cloud storage demand even as the company issued a slightly weaker-than-expected forecast for the current quarter. Seagate projected September-quarter revenue of $2.50 billion and adjusted earnings of $2.30 per share, both slightly below consensus estimates of $2.53 billion and $2.36, respectively. Cantor said the miss was due to the slower growth in its enterprise business, which is tied to technology transitions like the ramp-up of HAMR drives, and to dilution from Seagate's higher stock price and convertible notes. Still, the brokerage pointed to several positives. Gross margin guidance of 38.8% for the quarter topped consensus of 37.2%, and Seagate plans to resume share buybacks, aided by declining net leverage, now at 1.8 times. Cantor also highlighted strong demand from hyperscale cloud providers and ongoing visibility into orders extending into the second half of 2026. The firm raised its 2026 earnings forecast to $11 per share from $10.60, versus a consensus of $10.45, with a potential upside scenario of $12. For fiscal 2028, Cantor sees earnings reaching $16.00 if Seagate hits its revenue targets. Despite Seagate shares gaining 77% year-to-date, Cantor said there is further room for upside, recently lifting its price target to $175. The firm sees the broader re-rating of the hard disk drive industry still in its early stages, noting the stock could approach $250 over the next few years if trends hold. Shares fell following the guidance miss, but Cantor said a pullback would be an entry point for investors. Related articles Cantor upgrades Seagate despite soft outlook on rising cloud demand Clients buying into summer rally, bracing for later pullback, says BofA's Hartnett Surge of 50% since our AI selection, this chip giant still has great potential Sign in to access your portfolio
Globe and Mail
28-07-2025
- Business
- Globe and Mail
Western Digital's Q4 Earnings Ahead: Key Trends Investors Should Watch
Western Digital Corporation ( WDC ) is slated to release fourth-quarter fiscal 2025 results on July 30, after the closing bell. The Zacks Consensus Estimate for earnings has remained unchanged over the past 60 days at $1.47, suggesting a growth of 2% from the prior-year quarter. Management projects non-GAAP earnings of $1.45 (+/- 20 cents). The consensus estimate for revenues is currently pegged at $2.45 billion, suggesting a 34.8% decline from the prior-year quarter's figure. The company expects non-GAAP revenues of $2.45 billion (+/- $150 million). The company's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 7.3%. Shares of WDC have gained 3.6% over the past year against a 12.6% decline in the Zacks Computer-Storage Devices industry. Primary Catalysts & Risks for WDC's Q4 Earnings Western Digital's fiscal fourth-quarter performance is likely to have benefited from continued strong demand from cloud service providers, fueling nearline HDD and NAND capacity purchases. In the fiscal third quarter, cloud accounted for 87% of total revenues, reaching $2 billion, up 38% year over year. Broad investments from hyperscale cloud/data center customers remain a tailwind. Its 11-disk drives, offering up to 26TB (CMR) and 32TB (Ultra SMR), are rapidly ramping up, with more than 800,000 units shipped in the fiscal third quarter, and more than 1 million expected for the June quarter. Management is working closely on HAMR technology with two hyperscale customers and continues to receive positive and encouraging feedback on its drives. Long-term agreements are now in place with two major customers through mid-2026. Considering these factors, WDC anticipates sequential revenue growth in the fiscal fourth quarter, driven by strong data center demand. Management expects the rise of generative AI-driven storage deployments to lead to a client and consumer device refresh cycle and increase content growth in smartphones, gaming, PCs and consumer devices over the long term. Growing AI adoption is likely to boost storage demand across both HDD and Flash at the edge and core, creating many business opportunities. To expand its Flash business further, the company has established a separate entity, Sandisk. However, the ongoing macroeconomic volatility and uncertainty caused by the damaging impact of levying tariffs and escalating global trade conflicts are likely to weigh on its performance in the to-be-reported quarter by creating further cloud demand fluctuations in areas such as the enterprise segment and parts of its distribution and retail business. To address these changing macroeconomic and geopolitical challenges, Western Digital has outlined strategies. In the short term, it has assembled cross-functional teams to minimize disruptions and reduce the impact of tariffs on customers and operations. At the same time, management is adopting a disciplined approach by evaluating the long-term effects of supply chain adjustments to stay agile, resilient and prepared for the future. Despite broader uncertainties, demand from hyperscale customers remains strong amid a constrained supply situation. Also, rising expenditures are likely to weigh on its margins. For the fiscal fourth quarter, WDC expects operating expenses to rise slightly sequentially to $330–$340 million due to higher variable pay, new hires post–flash business spinoff and more R&D investments. Key Recent Developments In May 2025, Western Digital drove a new era of storage innovation by advancing infrastructure solutions tailored for AI/ML, software-defined storage and disaggregated storage. With a focus on hyperscale cloud service providers, enterprises and Storage-as-a-Service vendors, the company's Platforms Business delivers both high-capacity JBODs (Just a Bunch of Disks) and high-performance EBOF (Ethernet Bunch of Flash) NVMe-oF solutions to power intensive data workloads. Western Digital teamed up with Ingrasys, a subsidiary of Foxconn Technology Group, to transform the way storage and networking are deployed at scale. The initiative aims to engineer a Top-of-Rack (TOR) Ethernet Bunch of Flash (EBOF) switch with embedded storage—a new frontier in fabric-attached, disaggregated infrastructure designed to meet the surging data demands of AI and high-performance workloads. Western Digital boosted shareholder value by launching a new $2 billion share buyback program in May, highlighting its strong capital allocation strategy focused on long-term returns for investors. WDC's Earnings Whispers Our proven model does not conclusively predict an earnings beat for Western Digital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. Western Digital presently has an Earnings ESP of 0.00% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Stocks With the Favorable Combination Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle. Emerson Electric Co. ( EMR ), expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.46% and a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here. The consensus estimate for Emerson Electric's earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%. Illinois Tool Works Inc. ( ITW ), slated to release second-quarter 2025 results on July 30, has an Earnings ESP of +1.19% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for Illinois Tool Works' second-quarter 2025 earnings is pegged at $2.56 per share, suggesting a year-over-year rise of 0.8%. ITW has a trailing four-quarter average surprise of 3%. QUALCOMM Incorporated ( QCOM ) has an Earnings ESP of +0.60% and a Zacks Rank #3. It is scheduled to report quarterly figures on July 30. The Zacks Consensus Estimate for QCOM's to-be-reported quarter's earnings and revenues is pegged at $2.68 per share and $10.36 billion, respectively. QCOM has a trailing four-quarter average surprise of 6.4%. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illinois Tool Works Inc. (ITW): Free Stock Analysis Report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Emerson Electric Co. (EMR): Free Stock Analysis Report Western Digital Corporation (WDC): Free Stock Analysis Report
Zawya
01-07-2025
- Business
- Zawya
Du launches the National Hypercloud to offer sovereign cloud services in UAE for government entities
du is the first local hyperscale cloud provider in the country to offer secure, scalable and sovereign cloud in partnership with Oracle in Dubai and Northern Emirates. Dubai, UAE: du, the leading telecom and digital services provider, today announced a significant expansion of its cloud services portfolio with the launch of its sovereign cloud platform, the "du Tech National Hypercloud'. As the UAE's first hyperscale cloud provider, du's cloud platform will meet the unique needs of the UAE governments and large organizations seeking both the agility of the public cloud and the assurance of data sovereignty and tailored security. The launch is in line with du's committed efforts to create an infrastructure that is sovereign, secure, and scalable to serve public entities and meet the growing demand for digital transformation in the UAE. With a rich suite of 150+ of Oracle Cloud Infrastructure (OCI) services spanning infrastructure, platform and applications with embedded AI capabilities, the du Tech National Hypercloud supports rapid innovation within a sovereign AI environment at scale. Jasim AlAwadi, Chief ICT Officer at du said: 'We are excited to debut our National Hypercloud platform, fostering digital innovation and success for our customers while honouring the importance of national data control. Our infrastructure serves as a bastion of sovereignty and security, while also enabling financial savviness and technological advancement necessary for the UAE's pursuit of becoming a pioneering AI-utilizing nation.' Hosted within du Tech's state-of-the-art liquid-cooled data centres, the platform promises operational excellence, offering the latest hardware and GPUs without the financial strain of capital expenditure. 'Our homegrown National Hypercloud ensures that the UAE's digital assets remain within the country's borders, offering our customers a resilient and dynamic platform that is meticulously designed with their specific needs in mind. We are committed to reinforcing the government's digital initiatives by offering a powerful foundation for AI and cloud technologies,' added AlAwadi. Customers can expect performance, efficiency, and the freedom to innovate within a secure and compliant sovereign cloud ecosystem. This will significantly impact how the public sector operates, providing a tailored environment for rapid cloud adoption, managing data with enhanced control over security and locality, and ultimately aligning with the nation's strategy for digital sovereignty. 'Governments want to leverage the benefits of cloud and innovate with AI at scale, within a sovereign environment. Achieving this requires flexible deployment models. Oracle Cloud Infrastructure (OCI) provides the same set of services across a range of distributed models to address this challenge', said Miguel Vega, senior vice president - Database Platform & Cloud Infrastructure, Middle East, Turkey, and Africa region, Oracle. 'With the deployment of Oracle Alloy, du has introduced National Hypercloud, a capability that will help meet the sovereign requirements of government organisations in the UAE whilst supporting alignment with the local regulatory requirements.' The introduction of the du Tech National Hypercloud empowers du to leverage the expansive business potential, scalability, and pace of cloud innovations, positioning itself as a leader in the cloud and managed services domain. This move aligns with the UAE Strategy for Artificial Intelligence, aiming to enable UAE government customers to develop AI-driven services that propel the nation towards its ambitious digital future. About du du adds life to life with a comprehensive portfolio of mobile, fixed, broadband, entertainment services, and fintech solutions. Through a digital-first approach powered by ultra-reliable fiber and 5G technology, du delivers bespoke solutions leveraging cloud computing, AI-driven analytics, advanced cybersecurity, and IoT integration. As a trusted digital telco enabler spearheading the UAE's digital transformation, we collaborate with a dynamic partner ecosystem to propel industries and society toward operational excellence, shaping a more connected and digitally advanced future across the region.
