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Lumentum, KLA, and NetApp see margin boosts from AI buildout
The margin gains cited by MarketBeat Ratings come via three different mechanisms, including improved volume and productivity, first-mover advantages, and pass-through pricing on NAND memory cost changes.
MarketBeat Ratings highlights three semiconductor and technology companies, Lumentum Holdings, KLA Corp., and NetApp, as beneficiaries of AI buildout demand that has supported margin expansion.
The outlet says the companies have achieved higher margins through different paths: increasing volume and improving productivity, maintaining margins via first-mover advantage and reduced competitive pressure, or passing higher costs on to customers.
MarketBeat Ratings also notes that bottlenecks in crucial components and energy have altered previously predictable price cycles, which can change how sustainable margin improvements are.
It characterizes Lumentum’s revenue drivers as lasers and optical parts used to move data between AI chips, and frames the trend as a shift away from traditional data conduits such as copper wire.
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