
IT hardware stocks have dropped following the DeepSeek news.
Despite the plunge, BofA Securities analyst Wamsi Mohan likes stocks such as Corning Inc (NYSE:GLW), Hewlett Packard Enterprise Co (NYSE:HPE), Western Digital Corp (NASDAQ:WDC), Seagate Technology Holdings PLC (NASDAQ:STX), IBM (NYSE:IBM) and Apple Inc. (NASDAQ:AAPL) for various idiosyncratic reasons.
The analyst focused largely on non-AI-themed stocks that have specific catalysts.
Corning: The analyst noted that Corning's key drivers include a cyclical recovery in its optical business, growth in Lumen/BEAD programs, solar opportunities, stable display profitability and its upcoming Investor Day on March 18.
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Hewlett Packard: The company's key drivers are the Juniper Networks, Inc. (NYSE:JNPR) acquisition and synergies, IT spending recovery and cost-cutting initiatives, with AI server exposure not factored into the valuation.
The analyst anticipates Hewlett Packard will experience a pro-forma EPS increase of 8% for 2026, excluding synergies, and 18% with $350 million in cost synergies.
Western Digital: The company's key driver is the upcoming spin-off, which is expected to unlock value between $5-$10 billion.
Seagate Technology: The firm's key drivers include the ramp-up of HAMR, higher gross margins from high-capacity drives, and sustained data center spending.
Apple: The tech behemoth's key drivers include the iPhone SE launch, insourcing the modem for higher margins, WWDC with AI use cases, and iPhone 17 in Sept 2025.
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