KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Key Takeaways
Seagate (STX) and SK Hynix (000660 KS) both delivered strong quarterly results, underscoring persistent strength in the global memory and storage cycle.
AI infrastructure demand continues to be the single largest driver of profitability across HDD, DRAM, and NAND segments.
Analysts see sustained pricing power and supply discipline carrying into 2026, extending the current semiconductor supercycle.
Seagate (STX US): Solid Quarter Validates HDD Rebound
Fiscal Q1 FY26 (September Quarter)
| Metric | Result | YoY Change | Consensus |
|---|---|---|---|
| Revenue | US$2.63B | +21% | US$2.55B |
| Non-GAAP Net Income | US$583M | +73% | — |
| EPS | US$2.61 | +69% | US$2.39 |
| Gross Margin | 40.1% | Flat QoQ | — |
Outlook (Q2 FY26):
Revenue guide of ~US$2.7B (+16% YoY) — slightly ahead of consensus.
Non-GAAP operating margin expected to rise to ~30%, supported by pricing gains and cost efficiencies.
Strategic Highlights:
Seagate’s HAMR (Heat-Assisted Magnetic Recording) drives continue ramping, with five major cloud hyperscalers now qualified.
Over 1 million HAMR units shipped in the latest quarter; capacity crossover expected by 2H 2026.
Management reiterated plans to maintain ~25% exabyte growth through disciplined unit control and product mix optimization.
💬 “Seagate remains a key beneficiary of high-capacity storage demand,” said Goldman Sachs, citing improving supply-demand dynamics and share gains in nearline HDD.
💡 SK Hynix (000660 KS): Record-Breaking Quarter on HBM Strength
SK Hynix delivered one of its strongest quarters in history, cementing its leadership in AI memory solutions such as HBM3E and DDR5 server DRAM.
| Metric | Q3 2025 Result | YoY Change | Notes |
|---|---|---|---|
| Revenue | ₩24.45T (≈US$17.1B) | +39% | New record |
| Operating Profit | ₩11.38T (≈US$8B) | +62% | Margin expansion |
| Net Profit | ₩12.6T | +70%+ | Historical high |
| Gross Margin | 57% | — | Driven by HBM/DDR5 mix |
Following the results, SK Hynix shares surged ~5%, extending their YTD rally to +218%.
Key Drivers:
Demand boom for AI data center memory, notably HBM3E.
Completed 2026 HBM supply contracts with major customers.
Preparing to launch HBM4 in Q4 2025, with full-scale shipments in 2026.
Outlook:
DRAM bit growth expected to exceed 20% YoY in 2026.
HBM supply to remain tight until 2027, supporting pricing.
NAND to see mid-teens growth, though profitability lags DRAM.
CapEx in 2026 to increase YoY to expand HBM and DDR5 capacity.
📈 Sector View: Memory and Storage in Synchronized Upswing
The latest results from Seagate, SK Hynix, and earlier from Micron (MU) confirm that the global memory recovery remains intact.
AI demand continues to drive DRAM and HBM orders.
Storage manufacturers like Seagate and Western Digital benefit from hyperscaler restocking cycles.
Supply discipline across NAND and HDD markets keeps pricing firm.
Analysts anticipate further earnings revisions heading into 1H 2026.
Moomoo’s analysis highlights that DRAM fundamentals remain stronger than NAND, suggesting selective sector exposure — favoring HBM and enterprise-grade memory suppliers.
📊 Stocks to Watch
| Company | Ticker | Sector Focus | View |
|---|---|---|---|
| SK Hynix | 000660.KS | DRAM / HBM | Bullish – Strong AI-driven margin cycle |
| Seagate | STX.US | HDD | Positive – HAMR ramp and hyperscale demand |
| Western Digital | WDC.US | HDD / NAND | Neutral+ – Watching integration progress |
| Micron | MU.US | DRAM / NAND | Positive – Benefiting from AI server buildout |
| Samsung Electronics | 005930.KS | Memory | Stable – Pricing leader, lower volatility |
Investor Takeaway
The memory and storage rally shows no signs of slowing.
With AI infrastructure spending still accelerating into 2026, both Seagate’s disciplined HDD approach and SK Hynix’s leadership in advanced DRAM and HBM point to continued earnings momentum.
Bottom Line:
Expect sustained profit cycles into 2026–27.
DRAM > NAND in pricing strength and margin trajectory.
AI-driven CapEx remains the defining growth catalyst across the semiconductor value chain.
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