MarketBeat
03 Oct 2026, 13:40 UTC · 1h ago
3 AI Winners, 3 Very Different Paths to Higher Margins
Impact · against what's priced in
The article provides no new catalysts for LITE or KLAC, as the market has already integrated their current guidance and market projections into the stock prices. Conversely, NTAP faces a negative update as the price's current neutrality regarding margin erosion is challenged by evidence of a lack of structural pricing power.
- NTAP−0.30
Challenges what's priced in
- The price assumes
Whether the 150 basis point sequential drop in product gross margin from higher component costs is a temporary setback or the start of a sustained margin squeeze
The article suggests the margin drop is a result of a 'lack of control' over margins and a susceptibility to external NAND pricing, supporting the bear case that the current margin erosion may be a sustained squeeze rather than a temporary dip.
