Posted by Souljaboiiii > 2024-03-06 18:37 | Report Abuse

Question: Okay. And I'll come back to some of that, but maybe just on the quarter being better, similar on the hard drive side, where are you seeing that gross margin improvement? Is that all price? Or is there other cost element.

Answer: The hard drive business is driven by both better pricing and higher shipments. So we're still in an underutilized state. We expect to be -- still have some utilization this quarter, but we're seeing a little better volume. And of course, when you're -- we have underutilization, we're going to see a margin impact of that. But we're seeing better volume and better pricing in the drive business. And as I think if you roll both of these forward into Q4, we're going to see again, in Q4, we're going to -- our F Q4, which is our June quarter. Again, on the flash business, you're going to see bits flat so we'll see some modest pricing driven improvement there. And then we'll see some modest growth in exabytes and pricing in the drive business. So I would expect some modest sequential growth going into F Q4. Yes. But we're also -- I want to balance it with one thing, we're going to see more variable comp headwinds in outperformance of the business in Q4.

Posted by Souljaboiiii > 2024-03-06 18:38 | Report Abuse

Joe Moore

Yes. Okay. That makes sense. And then you guide one quarter at a time, which I appreciate, but any sense on the durability of the good things that you're seeing beyond the current quarter?

David Goeckeler

Well, if I look at the drive business, we're getting -- we're coming back. We did a lot of work during the downturn where we just structurally remove capacity from the system. So I think the drive industry is an industry that has been going through this client to cloud transition for literally 15 years. And the client business, there's just a lot more unit capacity that in the system that is required in a nearline dominated business. So we've just removed that from the system, I think we've signaled that to our customers. We don't have as much capacity as we had in the past. And in return, they're giving us more visibility into what their ordering looks like throughout the rest of the year. So in the drive business, we came into the fiscal year believing we're going to see sequential growth throughout the fiscal year, certainly, in the first half of the year, first 3 quarters of the year, we're seeing that.

And last earnings call, we extended that to this calendar year. So we feel good about that business in a return to kind of reversion to the mean of the 20%, 20% to 25% through cycle exabyte growth we're getting back to that.

Posted by Souljaboiiii > 2024-03-06 18:40 | Report Abuse

Joe Moore

Yes. Okay. I mean that idea that on the hard drive side, your focus isn't on supply growth. Like what if demand comes back? I mean, it seems like it could be a very good backdrop for drives in the sense of what's your ability to respond to a pickup in demand. And because it's such a complicated supply chain with so many parts, and it's been bad for so long, frankly, that I would think some of your subcomponent suppliers have limited flexibility as well.

David Goeckeler

Yes. Well, remember that in the drive business, even you're coming back to more exabytes, but units, it's still going down, right? So we've sized the business for what we think the number of units we need going forward that will keep the market balanced and that's where we want to stay because every quarter you go forward, the mix moves forward to higher capacity drives, you're adding exabytes through more capacity per unit. But I think the drive business has been persistently oversupplied for what, maybe 15 years, 20 years.

I mean everybody talks about the Thailand flood, it's like more, I mean it's like the only time where we had supplied more demand than supply in the drive business was when we had a flood in Thailand. And I was just there like 3 weeks ago, and they still have the thing on the wall that tells you how high the water went, but I don't think the drive industry should be any different than any other industry in the data center, right? You can't just show up in the quarter, you need something and you get it. And that's the way the business has been run for a very long time because of this persistent oversupply.

And I talked about earlier, we've now the downturn was a brutal downturn it had impact on quite frankly, a lot of people's families that work in those places that we are underemployed. And so we want to set the supply at a certain level. And then when we get visibility and conviction on sustained demand, not demand that just shows up for 1 quarter or 2 quarters or 3 quarters. I mean sustained demand for a long time, then we can start talking about if we put supply back in the system. But we're -- we're not at that point yet. We'll see how quickly we get there. I do think we're -- I do think in the next several quarters, we'll get back to supply-demand balance drive industry for maybe the first time in a long time.

Posted by Souljaboiiii > 2024-03-06 18:47 | Report Abuse

WDC and STX are clearing their inventories, and it will take some time.
I believe if what WDC said the conference is true which the demand is actually recovering, then it is going to take 2-3 quarters until they start to order from their subcomponent suppliers.

Posted by alan26334 > 2024-03-10 19:25 | Report Abuse

share price always response 6 months ahead. If what WDC saying is truth, rebound of dufu share price is near the corner....

Posted by howardmark > 2024-03-12 13:53 | Report Abuse

Dufu is game over. Run before it's too late. www.livescience.com/technology/electronics/new-petabit-scale-optical-disc-can-store-as-much-information-as-15000-dvds

Posted by swissvillage > 2024-03-20 10:52 | Report Abuse

Nvidia Expects to Win Outsized Chunk of Data Center Spending
New Blackwell chip-based products to come late this year
Nvidia warns of potential supply constraints as demand surges
https://www.bloomberg.com/news/articles/2024-03-19/nvidia-ceo-expects-to-win-outsized-chunk-of-data-center-spending

Posted by swissvillage > 2024-03-20 10:56 | Report Abuse

The #1 problem with all of the optical discs is time. You can put them in a UV blocking, static free envelope, place that envelope in a wooden box, put that in a cardboard box, and then leave it in a vault for 7 years. When you open it and place it in a drive, you are looking at a 35% readability.

Posted by swissvillage > 2024-03-20 18:13 | Report Abuse

Why is Malaysia becoming the "center of AI manufacturing"? The aim of NVIDIA CEO Jensen Huang

NVIDIA, having surpassed Google and Amazon in market capitalization, is part of the Magnificent 7, attracting global attention to its investment trends. A significant recent investment by the company is in Malaysia. In December 2023, NVIDIA CEO Jensen Huang visited Malaysia and pointed out the country's potential to become a manufacturing hub in the AI sector. He also reported plans to collaborate with the country's conglomerates on building supercomputers and developing large-scale language models. This article explores why Malaysia is gaining attention in the semiconductor and AI sectors.

Huang highly values Malaysia's potential
With NVIDIA surpassing Google and Amazon in market capitalization, interest in the company's development and investment trends has increased.

One of the recent highlights regarding NVIDIA is the expansion of its investment in Malaysia.

In December 2023, during his visit to Malaysia, NVIDIA CEO Jensen Huang stated the country has the potential to become a "manufacturing hub" in the AI sector. This statement suggested an expansion of investment in Malaysia, drawing significant media attention..

Posted by swissvillage > 2024-03-21 10:36 | Report Abuse

Bridge Data to build its largest data centre in Malaysia
https://www.nst.com.my/business/corporate/2024/02/1019313/bridge-data-build-its-largest-data-centre-malaysia

Posted by Tanleechoo > 2024-03-21 14:11 | Report Abuse

So is it good for dufu .? Or become taufu

Posted by gooman > 2024-03-21 19:13 | Report Abuse

Micron’s Surprise AI Boost Lifts Western Digital, AMD, Seagate, Other Chip Stocks
https://www.barrons.com/articles/micron-stock-western-digital-amd-seagate-cf4087ef?mod=barronsgooglenews

Posted by gooman > 2024-03-21 19:16 | Report Abuse

Micron's earnings were so good that shares in Western Digital, AMD and other chip stocks were on the rise as well Thursday.

Posted by gooman > 2024-03-21 19:17 | Report Abuse

US memory chip maker Micron soars after AI growth boosts revenue forecast
https://www.scmp.com/tech/big-tech/article/3256203/us-memory-chip-maker-micron-soars-after-ai-growth-boosts-revenue-forecast

Posted by tahansan > 2024-03-26 21:33 | Report Abuse

年報第二十四頁, "However, in light of the ongoing short-term market forecasts in the digital storage market, we anticipate that the revenue projection for HDDs in the first half of 2024 will gradually improve as compared to the second half of 2023."
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3433463

Posted by sharkdododo > 2024-03-27 19:20 | Report Abuse

No one pumping in this data center stock yet. Surprise. Better jump in before anyone realised!

Posted by EngineeringProfit > 2024-03-27 20:46 | Report Abuse

Can slowly collect- no rush

Posted by tahansan > 2024-04-05 12:19 | Report Abuse

來了~

Posted by EngineeringProfit > 2024-04-05 13:28 | Report Abuse

Huat ya

Posted by gooman > 2024-04-06 09:04 | Report Abuse

Samsung’s profits surge over 900% in first three months of 2024
https://www.bolnews.com/technology/2024/04/samsungs-profits-surge-over-900-in-first-three-months-of-2024/

Posted by yunjia > 2024-04-07 08:48 | Report Abuse

Gooman, how Samsung helps Dufu?

Posted by Souljaboiiii > 2024-04-07 19:11 | Report Abuse

Memory semiconductor industry is a very tough industry.
Oversupply will cause the memory semiconductors suppliers like Samsung, SK Hynix, Micron and etc to cut price in order to clear the inventories. They will start to layoff employees and reduce the output of the production in order to survive the downcycle. The good news is, once the inventory level in the industry is back to normal, the suppliers will start to increase the price of the products. Hence, their margin will slowly back to "normal".

Posted by Souljaboiiii > 2024-04-07 19:17 | Report Abuse

Actually this memory industry upcycle is predicted since Q3'23. Nothing is so special since everyone in the market already acknowledge the trend.
For instance, you may refer to NAND/HDD suppliers like WDC, STX, and Micron share prices.

The market is inefficient, and our job is to discover the inefficiencies and make money from them.

Posted by witan > 2024-04-08 09:17 | Report Abuse

Samsung results doesn't affect Dufu. But Seagate n Western Digital will affect Dufu earnings as they are mainly HDD manufacturers. Looking at Seagate n WD latest results are still on downtrend, maybe we next to see their next quarterly reports

Posted by James_Bond > 2024-04-08 16:48 | Report Abuse

This is another gem not to miss in keeping with global AI driven big data storage wave! Cheers!

Posted by Souljaboiiii > 2024-04-10 12:41 | Report Abuse

https://www.trendforce.com/news/2024/04/09/news-western-digital-customer-letter-confirms-hdd-supply-shortage-nand-flash-and-hard-drive-prices-continue-to-rise/#:~:text=The%20demand%20for%20large%2Dcapacity,for%20both%20HDD%20and%20SSD.

Posted by Souljaboiiii > 2024-04-10 12:41 | Report Abuse

Next week shoot to the moon.

Posted by Tanleechoo > 2024-04-10 14:19 | Report Abuse

Tqsm for sharing ..

Posted by tahansan > 2024-04-10 17:50 | Report Abuse

@Souljaboiiii, 感谢分享.

Posted by 3101575000 > 2024-04-11 13:24 | Report Abuse

Hopefully can have better profit

Posted by sharkdododo > 2024-04-12 08:08 | Report Abuse

Lot of data storage stock fly. But dufu still consolidating. Big shark accumulating phase. Investors briefing mentioned order picking up in q2.

Posted by tahansan > 2024-04-12 09:25 | Report Abuse

來了!!

Posted by Winnie Foo > 2024-04-12 11:19 | Report Abuse

DUFU WAKE UP LIAO

Posted by James_Bond > 2024-04-12 12:13 | Report Abuse

Go go go Dufu! Cheers!

Posted by EngineeringProfit > 2024-04-12 13:55 | Report Abuse

Huat ar. Can chase after GCB

Posted by James_Bond > 2024-04-12 16:21 | Report Abuse

Collected at 1.70, 1.80, 1.89, 1.98, 2.00, 2.10, 2.20! Cheers!

Posted by BursaMaster121212 > 2024-04-12 19:02 | Report Abuse

Just confirm with the management team

The average selling price is go up and the order book double

Net profit will be easily double also

Posted by Cakes Moon > 2024-04-12 20:07 | Report Abuse

Hoseh ah!!!
RM3 soon!!!

Posted by gooman > 2024-04-13 16:40 | Report Abuse

'FBM KLCI may exceed 1,700 points'
https://www.nst.com.my/business/corporate/2024/03/1025462/%C2%A0fbm-klci-may-exceed-1700-points%C2%A0

Posted by TerrenceLim > 2024-04-13 19:39 | Report Abuse

My sister work in this hard disk company S

She confirm saying the hard disk selling price has go up sky high

Monday I will jump in to buy

Last time I made good profit from DUFU in year 2021..also because of selling price go up and demand go up suddenly

That time I sold at 3.80

Posted by EngineeringProfit > 2024-04-13 19:44 | Report Abuse

I had collected enough. Not averaging up

Posted by EngineeringProfit > 2024-04-13 19:44 | Report Abuse

Go....go....go.....overtake gcb

Posted by Yusofff > 2024-04-13 22:00 | Report Abuse

https://seekingalpha.com/news/4088285-western-digital-plans-to-raise-flash-hard-drive-prices-amid-supply-shortage

Posted by Yusofff > 2024-04-13 22:00 | Report Abuse

hard disk shortage and price increase is real

Posted by 3101575000 > 2024-04-14 10:54 | Report Abuse

Bought 2/2022@2.93
2nd time 19/1/24@1.84
Hold till today still lost,hopefully can make profit soon 😊

Posted by old boy > 2024-04-14 11:14 | Report Abuse

iran attack israel, klia shot cases, monday got cheap tickets?

Posted by Oliver Ooi > 2024-04-14 15:57 | Report Abuse

if yes , then good. time to chip in tech stocks

Posted by c328 > 2024-04-15 21:17 | Report Abuse

Hamieh tours Beirut Airport: Lebanese airspace has reopened and work at the airport is gradually returning to normal.

Posted by James_Bond > 2024-04-16 11:13 | Report Abuse

Lock profit on Dufu first! Cheers!

Posted by James_Bond > 2024-04-16 16:31 | Report Abuse

Watch out: push to sell!