Summary of US Enterprise Hardware and Networking Conference Call Industry Overview - The focus is on the US Enterprise Hardware and Networking sector, particularly in relation to AI infrastructure investments for 2025 and beyond [2][3][11]. Key Companies Mentioned - **Dell Technologies (DELL)**: Rated as a "Buy" with a price target of $158, expected to benefit significantly from the AI server market and projected to achieve at least 10% revenue growth in ISG for 2025 [6][16]. - **TD SYNNEX (SNX)**: Rated as a "Buy" with a price target of $150, anticipated to see 5% growth in billings and return 50% of free cash flow to shareholders [6][16]. - **Arista Networks**: Neutral rating, expected to see conservative revenue growth due to its exposure to hyperscalers [4][8]. - **Celestica**: Neutral rating, also expected to have conservative estimates due to significant exposure to major tech companies [4][8]. - **Cisco**: Mentioned as a vendor benefiting from AI-related investments [3][8]. Core Insights and Arguments - **AI Infrastructure Investments**: Strong investments in AI infrastructure are expected to continue into 2025 and the first half of 2026, with data center capital expenditures projected to increase by approximately 33% in 2025 and 23% in 2026 [3][8]. - **Ethernet Switch Market Growth**: The market for AI back-end ethernet switches is expected to grow from approximately $1 billion in 2024 to $3.4 billion in 2025, driven by increased demand for AI workloads [3][39]. - **Revenue and Earnings Revisions**: Unlike 2024, where AI stocks benefited from both revenue growth and multiple expansions, 2025 is expected to focus more on "beat and raise" quarters due to elevated valuations [4][12]. - **Market Sentiment**: The market is currently pricing in strong investments in AI infrastructure, particularly among hyperscalers, while traditional tech companies are experiencing more modest valuations [8][12]. Financial Projections - **Dell**: Projected free cash flow growth of 15% in 2025 and low double digits in 2026, with shares trading at 12% of CY26E free cash flow [6][16]. - **TD SYNNEX**: Expected to achieve roughly 10% EPS growth, with its AI infrastructure business projected to grow to several billion dollars in revenue [6][16]. - **CDW**: Revenue and EPS estimates have been trimmed due to macroeconomic headwinds, with a new price target of $220 [5][7]. Potential Risks - **Valuation Concerns**: Elevated valuations of AI-exposed companies may limit further multiple expansions, making stock selection critical for 2025 [12][30]. - **Consumer Demand for AI Products**: Limited consumer interest in generative AI features for smartphones, particularly for Apple, may hinder growth expectations [8][46]. Other Important Insights - **AI Back-End vs. Front-End Investments**: The distinction between back-end and front-end AI investments is crucial, with back-end spending expected to grow significantly while front-end investments are also anticipated to increase [41][42]. - **Market Dynamics**: The market has shifted focus to secondary AI-related companies, with significant price appreciation observed in companies like Nvidia and Dell, while traditional tech companies face de-rating risks [22][23]. This summary encapsulates the key points from the conference call, highlighting the expected trends, financial projections, and potential risks within the US Enterprise Hardware and Networking sector as it relates to AI investments.

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **Hardware & Networking** industry, with specific attention to companies like **Apple**, **Dell**, **Cisco**, and various optical and networking firms. Core Insights and Arguments 1. **Apple's Stock Resilience**: Apple is expected to show resilience in its stock performance throughout 2025, particularly during the iPhone 17 cycle, as investors anticipate the benefits of the AI cycle. The premium earnings multiple is likely to remain intact until clearer signs of Edge AI proliferation emerge, benefiting consumer devices like smartphones and PCs [2][3]. 2. **Edge AI as a Major Investment Theme**: Edge AI is projected to remain a core investment theme by the end of 2025, contrasting with the uncertain sentiment surrounding AI infrastructure for hyperscalers. The demand for AI applications at the Edge is still in its infancy, presenting significant opportunities for development [3][4]. 3. **Efficiency and Cost Savings from AI**: The benefits of AI investments for enterprises are expected to be primarily measured in terms of efficiency and cost savings rather than direct revenue increases by the end of 2025 [3][4]. 4. **Hardware Companies' Favorable Environment**: The enterprise AI infrastructure environment is anticipated to become more favorable for hardware companies by the end of 2025, with a gradual shift towards on-premises infrastructure, benefiting companies like Dell and Cisco [4][5]. 5. **Investor Sentiment Challenges for AI-Levered Suppliers**: Companies heavily invested in AI may face challenges in investor sentiment during the first half of the year due to uncertainty regarding revenue momentum. Confirmation of momentum is expected to come with improved supply and guidance from companies in the second quarter [5][7]. 6. **Tighter Share Price Performance Dispersion**: A tighter dispersion of share price performance is expected in 2025 compared to 2024, as investors seek value in lagging stocks amidst a recovery in demand drivers [6][7]. 7. **Consolidation in Cyclical Markets**: There is an expectation of consolidation among equipment suppliers in cyclical markets such as Telco, Enterprise, and Cable/MSO, driven by a cyclical recovery in customer spending [8][9]. 8. **Favorable Outlook for Contract Manufacturers**: Contract manufacturers are likely to be viewed more favorably by investors compared to OEMs due to their leverage to AI-led growth and lower associated risks [9][10]. 9. **Tariff Headwinds Less Impactful**: Concerns regarding tariff-related headwinds are expected to be less impactful than previously feared, with companies under coverage likely to end the year with higher earnings multiples [10][11]. 10. **Challenges in Autonomous and Electric Vehicle Technologies**: The commercial success of autonomous and electric vehicle technologies remains uncertain, with potential challenges arising from a lowered growth outlook and uncertain vehicle model launch roadmaps [11][12]. Additional Important Points - The report emphasizes the importance of monitoring guidance from optical and networking companies like Coherent, Lumentum, and Arista as key indicators for investor sentiment and market performance [7][8]. - The overall sentiment in the hardware and networking sector is cautious but optimistic, with a focus on the evolving landscape of AI and its implications for various companies within the industry [3][4][5].

Core Viewpoint - Chinese President Xi Jinping emphasized the importance of adhering to the "one country, two systems" policy during the celebration of Macao's 25th anniversary since its return to China, highlighting the region's significant achievements and transformation under this framework [1][2]. Economic Development - Macao's GDP in 2023 has increased to seven times the figure from 1999, with its per capita GDP ranking among the highest globally [1]. - The region is recognized as one of the safest places in the world, with free education from kindergarten to senior high and an average life expectancy of 83.1 years [1]. Social Transformation - Xi noted that Macao residents enjoy more rights and freedoms than ever before, marking a significant social development since the region's return to China [1]. - The city is transitioning from being primarily a "casino city" to a diversified economy, enhancing its role as a world tourism and leisure center [1]. Governance and Future Prospects - The new government of Macao is urged to leverage the advantages of "one country, two systems" to promote high-quality development and improve governance efficiency [1]. - Xi expressed expectations for the government to diversify the local economy and maintain social harmony and stability [1]. Regional Cooperation - The Guangdong-Macao In-Depth Cooperation Zone in Hengqin is highlighted as a model for enriching the "one country, two systems" practice, aiming to reduce Macao's dependence on the gaming sector [1]. - The Greater Bay Area, encompassing 80 million people, presents significant potential for Macao's development [1].

Core Viewpoint - Morgan Stanley has adjusted the target price for Palo Alto Networks from $446 to $223 while maintaining an "Overweight" rating [1] Group 1: Analyst Ratings and Target Prices - The average rating for Palo Alto Networks is "Overweight" with an average target price of $419.49 according to FactSet data [2] - Wolfe Research has raised its target price for Palo Alto Networks to $440 while maintaining an "Outperform" rating [2] - Argus Research has also increased its target price to $443, maintaining a "Buy" rating [2] - HSBC has downgraded its rating to "Underweight" with a target price of $291 [3] Group 2: Market Dynamics - The increasing discount for CrowdStrike and Palo Alto Networks has added pricing pressure in the cybersecurity sector, which may be a reason for the adjustments in target prices by institutions [3]

Core Points - South Korea's parliament passed an impeachment motion against President Yoon Suk-yeol with 204 votes in favor, meeting the two-thirds threshold required for impeachment [1] - The political turmoil began with President Yoon declaring emergency martial law on December 3, citing the need to eradicate anti-state forces [1] - Following the declaration, the National Assembly quickly moved to lift the martial law on December 4, deeming it invalid [1] Timeline of Events - On December 5, opposition parties initiated an impeachment motion against President Yoon due to his martial law declaration [1] - The initial impeachment motion failed on December 7, as most lawmakers from the ruling People Power Party did not support it [1] - On December 8, President Yoon was booked as a suspect for treason related to his martial law declaration [1] - The National Assembly called for Yoon's arrest on December 10, following investigations into the martial law declaration [1] - On December 12, the parliament passed bills to appoint independent counsels to investigate Yoon's alleged insurrection and scandals involving his wife [1] - The second impeachment motion was reported on December 13, leading to the successful impeachment vote on December 14 [1] - With the impeachment passed, the constitutional court will deliberate within 180 days, during which Yoon's powers will be suspended and Prime Minister Han Duck-soo will act as president [1]

Core Viewpoint - Macao has emerged as a successful model of the "one country, two systems" policy, demonstrating significant economic growth and improved living standards since its return to China in 1999 [1][5][32] Governance and Political System - Macao's governance under the "one country, two systems" policy has allowed it to maintain a capitalist system while benefiting from strong support from the central government [4][17] - The political system in Macao is characterized by an efficient structure where the chief executive leads, and there are mutual checks and balances among the administrative, legislative, and judiciary powers [13][15] - The local legislature operates through competitive elections, and legislators can directly question the chief executive, showcasing a level of political engagement comparable to Western democracies [14][15] Economic Growth - Since 1999, Macao's per capita GDP has more than quadrupled to approximately 70,000 U.S. dollars in 2023, reflecting rapid economic growth [20] - The government has invested significantly in public welfare, improving housing, healthcare, and education, contributing to a safer environment with low crime rates [21][22] - Macao is diversifying its economy beyond gaming, with growth in sectors such as traditional Chinese medicine, finance, and tourism [24] Cultural Diversity and Inclusiveness - Macao is home to a rich tapestry of cultural and ethnic groups, fostering an environment of inclusiveness and cross-cultural exchanges [28][30] - The city has preserved its historical and cultural heritage while adapting to modern influences, making it a unique blend of East and West [29][30] Future Development - Macao is poised to play a more active role in the Guangdong-Hong Kong-Macao Greater Bay Area development and aims to strengthen its position as a platform for cooperation with Portuguese-speaking countries [25][26][27] - The ongoing evolution of the "one country, two systems" policy in Macao is seen as a new beginning, with potential for further growth and development [32][33]

Core Viewpoint - China is set to upgrade its 5G network to 5G-A standards and promote research and development in 6G technologies, aiming to enhance data infrastructure and facilitate efficient data flow across regions [1] Group 1: Data Infrastructure Development - Draft guidelines have been released for constructing data infrastructure, focusing on upgrading to 5G-A and expanding international communication channels [1] - The plan includes establishing a satellite internet system that integrates space and ground facilities [1] - The guidelines aim to provide a low-cost, efficient, and reliable data delivery environment for both centralized and decentralized transactions [1] Group 2: Technological Advancements - China will encourage exploration of new technological infrastructures, including blockchain and privacy-preserving computing [1] - The country plans to optimize network billing methods and reduce data transmission costs between eastern and western regions [1] - The 5G-A network will achieve peak data rates of 10 gigabits per second for downloads and 1 gigabit per second for uploads, with millisecond-level latency [1] Group 3: Regional Deployment - The deployment of international communication gateways will be balanced across eastern, central, and western regions [1] - Cities like Beijing and Shanghai have already begun offering 5G-A network services in select districts [1]

Summary of Accelink's Optical Networking Call Industry Overview - **Industry**: Optical Networking - **Company**: Accelink Technologies, a major transceiver manufacturer focusing on the Chinese domestic market Key Points 1. **Supply Constraints**: EML (Electro-absorption Modulated Laser) supplies will remain tight into 2025, impacting transceiver shipments [2][4] 2. **Demand Dynamics**: The demand for transceivers in China is strong, particularly for 400G products, which are a generation behind the mainstream products in North America [1][4] 3. **Shipment Lag**: Current shipments are lagging behind demand due to component supply constraints, leading to a portion of the demand in 2024 being pushed into 2025 [1][4] 4. **Production Capacity**: Accelink has established a new facility with equipment installed in July 2024, aiming for a production capacity of a few hundred thousand units per month, but is hindered by component supply issues [3] 5. **Market Competition**: Competition in the Chinese transceiver market is expected to intensify as suppliers expand their capacities, which may lead to pricing declines [4][6] 6. **Product Demand**: The construction of 400G long-haul optical networks by Chinese telecom operators is expected to increase demand for Accelink's products, including fiber amplifiers and coherent transceivers [7] 7. **Peer Comparison**: Accelink's insights on demand strength and EML supply tightness align with those of HG Tech, a close peer, but the intensifying competition poses a risk [8] Additional Insights - **Future Outlook**: Accelink anticipates that the demand for transceivers will continue to grow into 2025, despite current shipment challenges [4] - **Investment Implications**: The findings suggest potential investment opportunities in companies like HG Tech, which are also involved in the optical transceiver market [8][9] This summary encapsulates the critical insights from the call regarding Accelink's position in the optical networking industry, highlighting both opportunities and risks associated with supply constraints and competitive dynamics.

Election Dynamics in Wisconsin - Door County, Wisconsin, is a "super swing county" with a population of approximately 30,000, aligning with the national outcome in the last seven presidential elections [1] - In 2016, Trump won Door County by more than 500 votes, while in 2020, Biden won by less than 300 votes [1] - The county has a strong foundation in agriculture and manufacturing, notably shipbuilding, as well as a thriving tourism and catering sector [1] Voter Perspectives - Voters in Door County hold widely divergent views on issues such as the economy, immigration, and abortion rights [1] - Republican voters believe the Biden-Harris administration's policies have caused inflation, while Democratic voters argue that the Trump administration's fiscal stimulus also contributed to inflation [1] - A recent Pew Research Center survey revealed that 90% of Harris supporters believe illegal immigrants primarily take jobs Americans are unwilling to do, compared to 59% of Trump supporters [1] Economic Concerns - The cost of producing 100 pounds (45kg) of milk has increased by 5 USD, with the breakeven point rising to 22 USD, according to a small farm owner [1] - Republican voters are concerned about the Biden-Harris administration's immigration policies, which they believe could lower labor costs for larger farms and create competitive pressure for small family farms [1] Campaign Strategies - Both Trump and Harris are campaigning across key swing states, including Wisconsin, highlighting the state's importance in the upcoming election [1][2] - As of Thursday, Harris' average support rate leads Trump by 0.2 percentage points in Wisconsin, with similar narrow gaps in Michigan and Pennsylvania [1][2] Political Division - Voters emphasize personal likability and trustworthiness over policy issues in their voting decisions [1] - The election is described as turbulent and filled with anger, with concerns about exacerbating public divisions regardless of the outcome [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-40292 two (Exact name of registrant as specified in its charter) Cayman Islands 98-1577238 (State or other jurisdiction of incorporation or organi ...