The earnings report of the two firms re-affirms the golden age of technology. Macom Technology (NASDAQ:MTSI) posted strong numbers, as did Western Digital (NASDAQ:WDC) in the last week.
MTSI reported revenue growing by 24.7% to $148.5 million. It lost $9 million (13 cents a share), an improvement from last year. Strong sales of its high-performance product portfolio will lift margins. The stock is up sharply, so investors may want to wait for a dip before buying.
Hard disk supplier Western Digital posted earnings of 20 cents a share. Revenue fell by 7% to $3.9 billion. Sales of second-generation enterprise SSDs and energy-assisted hard drives lifted sales. Strong demand for storage will reverse the decline in WDC’s Data Center Devices and Solutions segment.
Thanks to the pandemic driving PC sales, demand for WDC’s NVMe-based client SSDs led to a record level of Exabyte shipments.
Samsung included a positive outlook when it reported a quarterly operating profit strength. The company forecast strong demand for data center and mobile. This bodes well for WDC’s business. Samsung’s expectations of a recovery in the DRAM chip market in 1H is a positive development for Micron (NASDAQ:MU).
If the technology sector loses steam, investors who missed out on the rise in these three stocks will have another chance. Even if they do not dip, these stocks are attractive at current levels.
Tech Insider
