Georgios Fatouros
๐Ÿ“Š ๐—ช๐——๐—– ๐—ค๐Ÿฎ๐—™๐Ÿฎ๐Ÿฌ๐Ÿฎ๐Ÿฒ ๐—˜๐—ฎ๐—ฟ๐—ป๐—ถ๐—ป๐—ด๐˜€: ๐—”๐—œ ๐—ก๐—ฒ๐—ฒ๐—ฑ๐˜€ ๐——๐—ฎ๐˜๐—ฎ, ๐——๐—ฎ๐˜๐—ฎ ๐—ก๐—ฒ๐—ฒ๐—ฑ๐˜€ ๐—ฆ๐˜๐—ผ๐—ฟ๐—ฎ๐—ด๐—ฒ, ๐—ช๐——๐—– ๐——๐—ฒ๐—น๐—ถ๐˜ƒ๐—ฒ๐—ฟ๐˜€ One of this monthโ€™s portfolio picks $WDC (Western Digital Corporation) reported earnings. The stock stayed flat after the release. And honestly, thatโ€™s a good outcome. Why? Because we were already up ~๐Ÿฐ๐Ÿฏ% ๐™ž๐™ฃ ๐™ก๐™š๐™จ๐™จ ๐™ฉ๐™๐™–๐™ฃ ๐™ค๐™ฃ๐™š ๐™ข๐™ค๐™ฃ๐™ฉ๐™ going into earnings. In that context, a flat reaction means: - no profit-taking panic - no thesis break - no disappointment signal from the market Now to the fundamentals, because they matter more than daily moves: - ๐™๐™š๐™ซ๐™š๐™ฃ๐™ช๐™š $๐Ÿฏ.๐Ÿฌ๐˜ฝ, +25% YoY, above guidance - ๐™€๐™‹๐™Ž $๐Ÿฎ.๐Ÿญ๐Ÿฏ, +78% YoY - ๐™‚๐™ง๐™ค๐™จ๐™จ ๐™ข๐™–๐™ง๐™œ๐™ž๐™ฃ ๐Ÿฐ๐Ÿฒ.๐Ÿญ%, guiding to **47โ€“48%** next quarter - ๐˜พ๐™ก๐™ค๐™ช๐™™ ๐™–๐™ฉ ๐Ÿด๐Ÿต% ๐™ค๐™› ๐™ง๐™š๐™ซ๐™š๐™ฃ๐™ช๐™š, driven by hyperscale demand - $๐Ÿฒ๐Ÿฑ๐Ÿฏ๐™ˆ ๐™›๐™ง๐™š๐™š ๐™˜๐™–๐™จ๐™ ๐™›๐™ก๐™ค๐™ฌ in a single quarter - Ongoing ๐™—๐™ช๐™ฎ๐™—๐™–๐™˜๐™ ๐™จ + ๐™™๐™ž๐™ซ๐™ž๐™™๐™š๐™ฃ๐™™, capital discipline intact What really matters is ๐˜„๐—ต๐—ฒ๐—ฟ๐—ฒ the growth is coming from. Management was very clear: ๐—”๐—œ ๐—ถ๐˜€ ๐—ฑ๐—ฟ๐—ถ๐˜ƒ๐—ถ๐—ป๐—ด ๐—ฑ๐—ฎ๐˜๐—ฎ ๐—ฐ๐—ฟ๐—ฒ๐—ฎ๐˜๐—ถ๐—ผ๐—ป, and data creation drives storage demand, especially for AI inference workloads, hyperscale cloud and high-capacity, cost-efficient HDDs. Ultra SMR is ๐—ป๐—ผ๐˜„ ๐—ผ๐˜ƒ๐—ฒ๐—ฟ ๐Ÿฑ๐Ÿฌ% ๐—ผ๐—ณ ๐—ป๐—ฒ๐—ฎ๐—ฟ๐—น๐—ถ๐—ป๐—ฒ ๐—บ๐—ถ๐˜…, margins are expanding, and long-term agreements ๐—ฒ๐˜…๐˜๐—ฒ๐—ป๐—ฑ ๐—ถ๐—ป๐˜๐—ผ ๐Ÿฎ๐Ÿฌ๐Ÿฎ๐Ÿณโ€“๐Ÿฎ๐Ÿฌ๐Ÿฎ๐Ÿด. AI capex is undeniably the main market driver. But as Iโ€™ve mentioned in older posts, the bottlenecks for AI scaling sit in supportive layers like storage and memory, not only GPUs. Our AI system picked this up back in Augโ€“Sept, and the results speak for themselves ~๐Ÿญ๐Ÿฒ% ๐—ฌ๐—ง๐——, ~๐Ÿฏ๐Ÿฑ% ๐—ผ๐˜ƒ๐—ฒ๐—ฟ ๐Ÿฒ๐—  ๐˜€๐—ผ ๐—ณ๐—ฎ๐—ฟ. But the hardest part isnโ€™t picking stocks. Itโ€™s staying invested when the process is temporarily uncomfortable. Thatโ€™s where the edge usually comes from. โ€” George
Not investment advice. The author may have financial interests in the mentioned instruments.
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