FirstLook

Research evidence excerpt

FirstLook

• Everpure Dynamics: While strong demand strengthens topline expectations, NAND-related cost pressures are a key

concern that could temper margins.

• HPQ's Nuanced Setup: Expect modest upside to EPS on the back of pricing actions, although higher memory costs

may challenge margin stability.

• NTAP Focus on FY27: Barring significant public sector drag, NTAP's long-term outlook hinges on effective margin

management amid increased memory costs.

Additional Key Insights:

• AI Demand: Enterprise AI remains a key growth driver across multiple segments, supporting expectations for growth

despite mixed macro signals.

• Market Dynamics: High memory pricing remains a wildcard influencing the ability to maintain profitability amidst

changing supply conditions.

IT Hardware & Networking Amit Daryanani (415-800-0185)

Technology amit.daryanani@evercoreisi.com

IT Hardware/Networking - Thoughts From 27E – (AAPL, APH, ANET, HDDs & FFIV!)

Investor sentiment is noticeably bullish in the IT hardware and networking space, though there's some frustration regarding the

performance of memory-related names compared to their industrious counterparts. Key areas of focus emerged from recent

investor meetings, with strong interest in upcoming tech rollouts and pricing trends across various segments.

Interest Shifts in AAPL: While long-only investors are increasingly engaged with AAPL as it prepares for WWDC, hedge funds

seem less committed. Anticipation surrounds the potential impact of Siri 2.0, particularly concerning new personalized features.

Valuation Concerns Around APH: Recent valuation pullbacks at APH have shocked some investors, particularly hedge funds

who are net short. Long-only investors are examining fiber portfolios more closely, though there remains skepticism about