These 3 Q1 Earnings Winners Will Go Higher

Key Points

• Three tech stocks that emerged as winners in the recent earnings season may also have the potential to soar higher in the future.
• Micron and Seagate both liaise with the fast-growing data center space.
• Amphenol's electronic and fiber optic connectors have applications in AI and many other industries.

Emerging from the first earnings season of 2025, a picture of a cooling market has become increasingly clear. Companies across sectors signaled caution in their forward guidance, with 59% of S&P 500 companies issuing negative earnings per share (EPS) guidance for the current year as of March 7, 2025. As a result, the projected earnings growth rate for the S&P 500 for the first quarter of the year is 7.3%, 3.1% below the five-year average.

With concerns about tariffs a major theme on earnings calls regardless of sector, investors may have a hard time finding companies that are especially optimistic about their upcoming performance. Fortunately, though, some diamonds in the rough do exist.

A number of tech firms not only posted better-than-expected earnings in the latest round of reports but also offered signs of potential continued upward growth in the near term.

Micron's Computer Memory Products Come Roaring Back

Micron Technology Inc. NASDAQ: MU reported first-quarter 2025 earnings in December 2024 and established a lofty revenue growth goal for companies to follow. The firm's revenue surged by more than 84% year-over-year (YoY) as the company notched $1.9 billion in net income compared with a net loss in the prior-year period. As a part of the cyclical computer memory industry, Micron had most recently underperformed expectations—this quarterly report signaled a massive return to profitability and an upward trajectory overall.

Micron's data center business is a key segment to watch going forward, as this portion of the company's operations represented more than half of total revenue for the first time in the last quarter. More broadly, the data center business is growing rapidly—the global data center market is expected to expand at a compound annual growth rate (CAGR) of more than 11% through 2034, reaching an estimated $365 billion by that time. The continued adoption of AI should suit Micron well, as the company's HBM3E memory technology is likely to draw significant demand among AI users.

Notably, Micron shares fell in December after the last earnings report and remain down, having dropped by 7.5% overall in the year leading to March 7, 2025. However, analysts remain largely in favor of the company, with 24 out of 27 offering a Buy rating. Micron has a consensus price target of $134.96, more than 47% above current price levels.

Seagate Stakes a Claim to a Growing Position in the Data Storage Market

Another company in the tech space with better-than-expected earnings is Seagate Technology Holdings plc NASDAQ: STX, a provider of various data storage products and services. The company posted an impressive record of sequential growth in quarterly revenue, non-GAAP EPS, and gross margin in each quarter of the calendar year 2024. In the latest quarter, revenue surged by nearly 50% YoY to $2.3 billion. The company also posted a net income of $336 million compared to a net loss in the prior-year quarter. 

Seagate is bulking up its cloud storage offerings as demand for its services improves. This should position it to capitalize on growing AI demand, like Micron above. Analysts are broadly optimistic about Seagate's potential in the near term. Like Micron, shares of the company have been down slightly in the last 12 months. STX stock returned 6.3% during that time, but 13 out of 19 analysts viewed it as a buy.

The consensus price target for the stock is $122.56, with multiple analysts increasing their targets following the latest earnings report. Based on March 7 price levels, STX stock has an upside potential of nearly 40%.

Strong Earnings and 30% Sales Growth Driven by AI and Diverse Market Demand

Amphenol Corp. NYSE: APH builds electrical and fiber optic connectors for numerous applications, including AI. Sales for the latest quarter were $4.3 billion, 30% higher than the prior-year quarter, and adjusted diluted EPS of 55 cents per share was up 34% YoY and came in a nickel above analyst predictions. Forward guidance was optimistic as well.

While Amphenol benefits from AI adoption rates, its broad customer base ensures that it capitalizes on increased demand from mobile networks, commercial air, mobile devices, broadband and defense. That may be why eight of 13 analysts rate APH shares a Buy. The company has a 28% upside potential as of March 7, based on a consensus price target of $80.68.

The company's 13% 12-month gains have not helped to make it less expensive—APH still trades at a forward P/E ratio of 26.3. However, investors who are bullish on AI and seeking a broadly diversified company might consider Amphenol's outperformance last quarter as a launchpad for future success.