Youtube·2025-12-11 21:41Core Insights - Analysts express a positive outlook despite a slight decline in shares, with J.P. Morgan suggesting the company may be conservative in its full-year 2026 guidance, projecting $9.6 billion after finishing FY 25 at $7 billion [1] Group 1: Financial Performance and Guidance - The company has a significant backlog entering FY 26, amounting to $11.5 billion, driven by strength across its portfolio [3] - The FY 26 guidance assumes a challenging environment in China, with a 20% decline in business due to headwinds, and the company has de-risked this from its forecast [7] Group 2: Market Trends and Opportunities - There is a notable shift among hyperscalers towards multiple alternatives for building and optimizing their technology stacks, including purchasing merchant chips and developing custom solutions [4] - The company sees opportunities in providing essential mass for silicon design and system integration, particularly following a $2 billion investment endorsement from NVIDIA [5][6] Group 3: Strategic Partnerships and Investments - NVIDIA's investment is viewed as a significant endorsement of the company's strategy to deliver engineering solutions from silicon to systems, emphasizing the importance of physical simulation in product development [6] - Jensen from NVIDIA highlights the potential for mutual financial gain and alignment of roadmaps to accelerate investments [8]