[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Jukan [@Jukanlosreve](/creator/twitter/Jukanlosreve) on x 22.6K followers Created: 2025-07-24 01:47:39 UTC Pre-Quarterly Report Investor Feedback for Communications and Servers: Networking and AI Servers Still Favored Citi (A. Malik, 2025/07/20) Citi summarized investor feedback from New York exchanges, indicating overall cautious sentiment, particularly more pessimistic towards hardware OEMs, while AI-related networking equipment and servers continue to attract capital, with some popular individual stocks facing issues of being over-owned. Hardware OEM Sentiment Bearish, AI Networking and Components Relatively Favored Investors are concerned about the macroeconomic environment and the impact of the "Section XXX investigation," putting overall pressure on hardware OEM stocks. In contrast, AI networking (e.g., ANET/COHR) has regained favor due to the expansion of the Ethernet and 1.6T optical module markets, and component and interconnect companies also have relative appeal. Networking Equipment: Ethernet TAM Expansion, Second-Tier Buyers Gaining Attention The scale-out application of Ethernet in data centers continues to expand, while Tomahawk X and Ultra chips bring new controversies regarding scale-up. Market attention is shifting to new rounds of buyers such as Oracle and AI service providers. Citi is more optimistic about ANET and NVDA's performance in the second half of the year. AI Servers: Broad AI Adoption Expands to New Cloud and Sovereign Users, SMCI Faces Margin Pressure AI server manufacturers (e.g., DELL) will benefit from expanding customer bases, but SMCI faces greater margin pressure, especially given its stock price has risen XX% year-to-date. Citi believes that compliant products (such as AI servers) will continue to be exempt from Section XXX tariffs. Consumer Electronics and Storage: Short-Term Improvement but Lacks Sustainability, NTAP/PSTG Divergence PC manufacturers like HPQ benefited from strong sell-in in 2Q, but poor demand visibility may suppress stock performance. AAPL's potential foldable phone sparks anticipation, but Google TAC regulatory risks raise concerns. In storage, PSTG continues to benefit from its partnership with Meta, but new customer announcements are unlikely at the September event, and investors are more reserved about NTAP's revenue acceleration. Structural Opportunities Emerge in Component Sector, Crowded Trades Require Attention to Pullback Risks Improved HDD fundamentals are good for WDC's short-term performance to outperform STX. For connector companies, earnings expectations for APH, TEL, GLW, etc., may be revised upwards, but APH may face adjustment pressure due to being over-owned, while TEL is expected to benefit from stable industrial and automotive demand. XXXXX engagements  **Related Topics** [hardware](/topic/hardware) [Sentiment](/topic/sentiment) [exchanges](/topic/exchanges) [coins ai](/topic/coins-ai) [investment](/topic/investment) [Post Link](https://x.com/Jukanlosreve/status/1948198361250796009)
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Jukan @Jukanlosreve on x 22.6K followers
Created: 2025-07-24 01:47:39 UTC
Pre-Quarterly Report Investor Feedback for Communications and Servers: Networking and AI Servers Still Favored Citi (A. Malik, 2025/07/20)
Citi summarized investor feedback from New York exchanges, indicating overall cautious sentiment, particularly more pessimistic towards hardware OEMs, while AI-related networking equipment and servers continue to attract capital, with some popular individual stocks facing issues of being over-owned.
Hardware OEM Sentiment Bearish, AI Networking and Components Relatively Favored Investors are concerned about the macroeconomic environment and the impact of the "Section XXX investigation," putting overall pressure on hardware OEM stocks. In contrast, AI networking (e.g., ANET/COHR) has regained favor due to the expansion of the Ethernet and 1.6T optical module markets, and component and interconnect companies also have relative appeal.
Networking Equipment: Ethernet TAM Expansion, Second-Tier Buyers Gaining Attention The scale-out application of Ethernet in data centers continues to expand, while Tomahawk X and Ultra chips bring new controversies regarding scale-up. Market attention is shifting to new rounds of buyers such as Oracle and AI service providers. Citi is more optimistic about ANET and NVDA's performance in the second half of the year.
AI Servers: Broad AI Adoption Expands to New Cloud and Sovereign Users, SMCI Faces Margin Pressure AI server manufacturers (e.g., DELL) will benefit from expanding customer bases, but SMCI faces greater margin pressure, especially given its stock price has risen XX% year-to-date. Citi believes that compliant products (such as AI servers) will continue to be exempt from Section XXX tariffs.
Consumer Electronics and Storage: Short-Term Improvement but Lacks Sustainability, NTAP/PSTG Divergence PC manufacturers like HPQ benefited from strong sell-in in 2Q, but poor demand visibility may suppress stock performance. AAPL's potential foldable phone sparks anticipation, but Google TAC regulatory risks raise concerns. In storage, PSTG continues to benefit from its partnership with Meta, but new customer announcements are unlikely at the September event, and investors are more reserved about NTAP's revenue acceleration.
Structural Opportunities Emerge in Component Sector, Crowded Trades Require Attention to Pullback Risks Improved HDD fundamentals are good for WDC's short-term performance to outperform STX. For connector companies, earnings expectations for APH, TEL, GLW, etc., may be revised upwards, but APH may face adjustment pressure due to being over-owned, while TEL is expected to benefit from stable industrial and automotive demand.
XXXXX engagements
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