Latest news with #datacenter
Yahoo
2 days ago
- Business
- Yahoo
The Top 5 Analyst Questions From MACOM's Q1 Earnings Call
MACOM's first quarter saw a positive market response, fueled by robust revenue growth across all core markets, especially data center and telecom. Management credited strong demand for high-speed connectivity solutions and ongoing momentum in defense electronics as key contributors to the quarter's performance. CEO Stephen Daly emphasized that new products and technology upgrades, particularly in optical and radio frequency components, helped the company gain market share. He noted, 'Our growth is driven by our new products gaining market share, as well as positive secular trends in certain segments of our three major end markets.' Is now the time to buy MTSI? Find out in our full research report (it's free). Revenue: $235.9 million vs analyst estimates of $230 million (30.2% year-on-year growth, 2.6% beat) Adjusted EPS: $0.85 vs analyst estimates of $0.84 (in line) Adjusted EBITDA: $66.61 million vs analyst estimates of $67.8 million (28.2% margin, 1.8% miss) Revenue Guidance for Q2 CY2025 is $250 million at the midpoint, above analyst estimates of $236.6 million Adjusted EPS guidance for Q2 CY2025 is $0.89 at the midpoint, above analyst estimates of $0.87 Operating Margin: 14.8%, up from 8.5% in the same quarter last year Inventory Days Outstanding: 181, up from 179 in the previous quarter Market Capitalization: $10.57 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Tore Svanberg (Stifel): Asked if data center growth rates are sustainable and about volatility in that segment. CEO Stephen Daly explained that long-term growth drivers remain, but high volatility is expected, and growth rates may moderate over time. David Williams (Benchmark Company): Questioned the magnitude and development pace of the SATCOM business. Daly said the opportunity is attractive and the company is investing in new products like Opto-Amp to capture market share, but declined to size the market precisely. Karl Ackerman (BNP Paribas): Sought clarity on timing for a large SATCOM contract and potential for expansion. Daly indicated the program is progressing as planned, with revenue ramp expected toward year-end, but would not comment on follow-on opportunities. William Stein (Truist Securities): Inquired whether recent telecom growth was due to end-market demand or inventory normalization. Daly attributed improvements to both market share gains and recovery in supply chain inventory, especially in cable infrastructure and metro long-haul. Srini Pajjuri (Raymond James): Asked about inventory and customer demand in data center. Daly reported no signs of inventory build-up, with customers expediting orders across platforms, but emphasized the company's practice of only providing guidance one quarter ahead due to inherent market volatility. In the coming quarters, the StockStory team will monitor (1) the ramp-up of newly launched optical and photonic products, (2) progress on the Wolfspeed RF fab transfer and its impact on margins, and (3) sustained growth in industrial and defense, particularly in European markets. Continued momentum in design wins and operational execution will also be key signposts for long-term growth. MACOM currently trades at $142.05, up from $113.45 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
5 days ago
- Business
- Bloomberg
Allianz GI, Keppel Join Princeton Digital's $400 Million Loan
Private credit funds Allianz Global Investors and Keppel Credit will come in as lenders for data center operator Princeton Digital Group 's $400 million private credit loan, according to people familiar with the matter. Other lenders in deal are pension fund Ontario Municipal Employees' Retirement System, Sumitomo Mitsui Banking Corp., Standard Chartered Plc and bookrunners Barclays Plc, BNP Paribas and Deutsche Bank AG, said the people familiar, who asked not to be identified discussing private matters. The allocations are set to be finalized next week, they said.
Washington Post
6 days ago
- Business
- Washington Post
Rick Perry's AI plan: a colossal nuclear campus in Trump's image
A company led by former energy secretary and Texas governor Rick Perry has submitted a federal application to build a nuclear power complex on what sponsors say would be the world's largest datacenter campus — a project with a distinctly political veneer. Perry is co-founder of a Fermi America, a Texas company that has said it will soon announce details of its grand vision for a property adjacent to the Pantex nuclear weapons plant near Amarillo. Its confidential application for construction of four 1-gigawatt reactors, obtained by The Washington Post, says the expansive facility will be called the Donald. J. Trump Advanced Energy and Intelligence Campus.
Yahoo
7 days ago
- Business
- Yahoo
Bitdeer Raises $330M Via Convertible Note Sale
Bitcoin miner and ASIC manufacturer Bitdeer Technologies (BTDR) has completed a $330 million private placement of convertible senior notes maturing July 1, 2031. The notes bear interest at 4.875% and feature a conversion price of $15.87 per share — about 44% above BTDR's current $11 trading price. The bond's conversion rate of 62.9921 Class A shares per $1,000 principal means full conversion could yield roughly 20.8 million new shares. To cover this, Bitdeer prepaid Barclays $129.6 million for a call option with a zero strike price on over 10.2 million shares, or 49% of the conversion total. The option allows Bitdeer to settle conversions using shares from Barclays' inventory rather than tying up its own stock. Bitdeer, is using roughly $129.6 million of the proceeds to fund the zero-strike call option, $36.1 million to pay the cash consideration for its concurrent note exchange transactions, and the remaining funds for datacenter expansion, the development of its ASIC manufacturing and working capital. The company is currently working on new ASIC chip designs that could potentially make its mining rigs substantially more efficient than current models. Shares are marginally lower in Wednesday trade. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
- Yahoo
Pure Storage, Inc. (PSTG): A Bull Case Theory
We came across a bullish thesis on Pure Storage, Inc. on High Growth Investing's Substack by Stefan Waldhauser. In this article, we will summarize the bull's thesis on PSTG. Pure Storage, Inc.'s share was trading at $51.58 as of June 20th. PSTG's trailing and forward P/E ratios were 135.74 and 28.90, respectively, according to Yahoo Finance. A futuristic datacenter with servers and high-tech equipment, signifying the company's cutting-edge digital technology. Pure Storage (PSTG) has delivered remarkable returns over the past five years, rising over 400% and recently tripling within 12 months to an all-time high. This sharp appreciation followed strong Q1 FY25 results, with 18% revenue growth, a rebound from a weak prior-year quarter. The company's shift toward subscription-based revenues continues, with recurring revenue reaching $1.4 billion and comprising half of total sales. Profitability has improved significantly, with a 14.5% non-GAAP operating margin and 25% free cash flow margin in Q1. Pure Storage is transitioning from a hardware vendor to a software-like business, demonstrated by its 20% R&D spend, rivaling software peers. While FY25 guidance calls for 10% revenue growth and improved GAAP profitability, the stock's recent surge is also driven by broader tailwinds. The declining relevance of traditional disk storage and the growing cost-efficiency and energy savings of flash storage, bolstered by products like FlashArray E, are accelerating industry-wide adoption. Although Pure has seen limited hyperscaler adoption, discussions with major players like Google and AWS are advancing, and the company hopes to secure a design win this year. However, CEO optimism on this front raises execution risk. Concerns also persist over high stock-based compensation, which has led to nearly 40% shareholder dilution over six years, muting per-share gains. At an EV/FCF of 33 and EV/Sales above 6, the stock appears richly valued. While the author has trimmed exposure after significant gains, Pure remains a long-term holding given its leadership in flash storage and potential to become a dominant player in the global data storage market. Previously, we covered a bullish thesis on Pure Storage, Inc. by Magnus Ofstad in March 2025, which highlighted the company's expanding subscription revenue base, strong margins, and market overreaction to conservative FY26 guidance. The company's stock price has appreciated by approximately 5% since our coverage. This is because the core thesis held, but macro fears capped upside. The thesis still stands as Pure Storage's fundamentals remain intact, and long-term growth drivers are unchanged. Stefan Waldhauser shares a similar view but emphasizes Pure's historical performance, improved profitability, and the strategic shift toward energy-efficient flash storage amidst rising AI demand. Pure Storage, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held PSTG at the end of the first quarter, which was 30 in the previous quarter. While we acknowledge the risk and potential of PSTG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Sign in to access your portfolio
