Validea's Leading IT Stocks According to Joel Greenblatt - 8/18/2025
Top Rated IT Stocks: Validea's Earnings Yield Investor model highlights HP Inc., Western Digital Corp., MicroStrategy Inc., Cognizant Technology Solutions Corp., and Leidos Holdings Inc. as top-rated stocks based on Joel Greenblatt's investment strategy.
HP Inc. Overview: HP Inc. received a 100% rating, indicating strong interest due to its fundamentals in personal computing and printing solutions across various segments.
Western Digital Corp. Overview: With a 90% rating, Western Digital specializes in data storage devices and solutions, catering to diverse markets including cloud and consumer sectors.
MicroStrategy and Cognizant Ratings: Both MicroStrategy and Cognizant Technology Solutions scored 80%, focusing on software development and technology services, with MicroStrategy notably investing heavily in Bitcoin.
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Apple Reports Strong Holiday Quarter Driven by iPhone Sales Surge
- Significant Revenue Growth: Apple's fiscal Q1 2026 revenue reached $143.76 billion, a 16% year-over-year increase that exceeded the market expectation of $138.48 billion, indicating a strong product cycle and market demand.
- Strong iPhone Sales: iPhone sales surged 23% year-over-year to $85.27 billion, beating estimates by $7 billion, highlighting the enthusiastic reception of the new iPhone 17, particularly in Greater China.
- Continued Service Revenue Growth: Services revenue grew 13.9% year-over-year to $30.01 billion, slightly slowing but still above internal expectations, showcasing Apple's strong profitability in the services sector.
- Optimistic Future Outlook: Apple expects fiscal Q2 2026 revenue to grow between 13% and 16%, guiding a range of $107.76 billion to $110.62 billion, surpassing market expectations and reflecting the company's confidence in future growth.

TSMC Reports Stellar Q4 Results and Capital Spending Plans
- Significant Revenue Growth: TSMC's Q4 revenue surged 25.5% year-over-year to $33.73 billion, with a gross margin of 62.3%, reflecting strong market demand and profitability, thereby reinforcing its leadership position in the semiconductor industry.
- Capital Expenditure Plans: Management anticipates capital spending between $52 billion and $56 billion in 2026, with approximately 40% of revenue allocated to capital expenditures, indicating strong confidence in future growth and ongoing investment in the AI market.
- Increase in Advanced Process Share: Three-nanometer chips accounted for 28% of total wafer revenue, five-nanometer for 35%, and seven-nanometer for 14%, totaling 77% of revenue from the most advanced processes, highlighting the robust demand driven by AI applications and TSMC's technological edge.
- Geopolitical Risk Management: TSMC is actively expanding into the U.S. and Japan to reduce reliance on Taiwan, enhancing the stability and resilience of its global supply chain, ensuring competitiveness in a rapidly changing market environment.









