Technology

Report by Rosenblatt Securities

The post-results sell-off reflects an expectations miss vs. Seagate’s exceptional print rather than any deterioration in fundamentals. WDC’s June-quarter exabyte shortfall was modest and largely tied to the move towards 40TB ePMR, while STX is benefiting from a richer HAMR mix and higher guided margins. Rosenblatt accepts the margin gap could widen before it narrows but still sees WDC exiting FY28 near 64% gross margin. Importantly, Nearline price/TB growth accelerated to 17% Y/Y and management effectively endorsed sustained high-teens pricing growth through FY27. Product transitions across 40TB ePMR, ultraSMR and 44TB HAMR remain the key catalyst, expected to reaccelerate exabyte growth towards the high-20% range in 2H27. TP $800, while Rosenblatt sees $375-400 as a “back-up-the-truck” level.

Report by Vermilion Research

The Vermilion team remain bullish on the S&P 500 (SPX), Nasdaq 100 (QQQ), and Russell 2000 (IWM). Market dynamics continue to improve ever since the major bullish false breakdowns at 6480-6520 on the SPX, 24,000 on Nasdaq futures (NQ), and $245 on the IWM, with all of them now breaking out to all-time highs and holding above bullish gaps from April 17. Everything that the team sees suggests bulls remain firmly in control, so the team want to be buying any pullbacks for the foreseeable future to the 20-day MA or 21-day EMA. The team discussed adding exposure to growth, and primarily technology, as growth has taken over as leadership relative to value. RS on the cap-weighted XLK is now breaking above its 2025 highs and they are upgrading Technology to overweight. The team have remained overweight semiconductors (SMH, NVIDIA Corp, Taiwan Semiconductor Manufacturing Co Ltd, Ciena Corp, etc.) and memory (SanDisk Corp, Western Digital Corp, Seagate Technology Holdings PLC, Micron Technology Inc) ever since last June, and these remain their favourite areas within Tech.

Technology

Report by Propitious Research

Improving global market positioning whilst still trading at a discount to peers - SK Hynix trades on a 7.2x forward PE ratio despite commanding a strong position in the DRAM market and gaining significant market share in NAND over the last year (surpassing Western Digital, whilst Micron and Intel have also lagged). Following the completion of the first phase of its Intel NAND acquisition, SK Hynix should be the #2 manufacturer globally, edging out Kioxia (in which SK Hynix owns a 15% stake). Given the strong pricing environment Wium Malan believes consensus forecasts look very conservative.