Dutch Semiconductor Firm Besi Reports Lower Quarterly Bookings Amid Waning Demand for Computing and Mobile Devices

Semiconductor company BE Semiconductor Industries reported a 3% drop in quarterly bookings due to weak demand in mainstream computing and mobile sectors. Despite this, the company lifted its long-term targets, expecting higher demand for its advanced solutions. BE Semiconductor's shares climbed after the announcement.

The technology sector has been experiencing robust growth in the second quarter of 2025, driven by strong adoption of Artificial Intelligence (AI) and machine learning technologies, as well as Generative AI (GenAI). This growth has been fueled by the ongoing digitalization wave, with significant investments in cloud computing, 5G, the Internet of Things, wearables, headsets supporting augmented and virtual reality technologies, drones, robotics, cybersecurity, blockchain, and quantum computing [1].

Several technology companies are poised to report their earnings results over the next couple of weeks. Four companies stand out: Meta Platforms (META), Lam Research (LRCX), Flex (FLEX), and Seagate Technology (STX). These companies are expected to beat earnings estimates this season due to their strong positions in the technology sector and their ability to capitalize on the AI boom.

Meta Platforms, based in Menlo Park, California, has an Earnings ESP of +1.83% and a Zacks Rank of 1. The company's focus on integrating AI into its platforms, such as Facebook, WhatsApp, Instagram, Messenger, and Threads, is expected to boost second-quarter 2025 ad revenues, which are pegged at $43.94 billion, suggesting 14.6% year-over-year growth. The Zacks Consensus Estimate for earnings has increased to $5.80 per share, indicating 12.4% growth over the figure reported in the year-ago quarter [1].

Lam Research, based in Fremont, California, has an Earnings ESP of +2.71% and a Zacks Rank of 2. The company benefits from ongoing shifts in semiconductor demand, particularly around AI and data center chips. Lam Research's Systems revenues accounted for 64.3% in the third quarter of fiscal 2025, with the consensus mark pegged at $3.22 billion, indicating 48.5% year-over-year growth. The Zacks Consensus Estimate for earnings has been steady at $1.20 per share [1].

Flex, based in Singapore, is set to report first-quarter fiscal 2026 results on July 24. The company has an Earnings ESP of +2.77% and a Zacks Rank of 2. Flex's to-be-reported quarter is expected to reflect an expanding IP portfolio, recent design wins, acquisitions, and strong demand in data center, networking, and automotive power electronics markets. The Zacks Consensus Estimate for Agility Solutions is pegged at $3.52 billion, indicating 4.5% year-over-year growth. The consensus estimate for fiscal first-quarter earnings has been steady at 63 cents per share [1].

Seagate Technology, based in Dublin, Ireland, is scheduled to report its fourth-quarter fiscal 2025 results on July 29. The company has an Earnings ESP of +2.34% and a Zacks Rank of 2. Continued momentum in mass capacity revenues, driven by robust nearline cloud demand, is expected to propel Seagate's growth trajectory. The Zacks Consensus Estimate for Mass Capacity revenues is pegged at $2 billion, suggesting 39.6% year-over-year growth. The consensus mark for earnings has inched up to $2.46 per share [1].

Investors should keep an eye on these companies' earnings reports, as they are expected to provide insights into the technology sector's performance and the broader impact of AI technologies on the industry.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/STX/pressreleases/33592044/4-technology-stocks-poised-to-beat-earnings-estimates-in-q2/