Core Insights - Emerging market ETFs are experiencing renewed interest, with two of the ten largest U.S.-listed ETF inflow winners being broad EM funds [1] - Low-cost passive strategies dominate ETF flows, but democracy-focused ETFs have outperformed traditional benchmarks [1] Emerging Trends in Emerging Markets - Investors are familiar with flagship broad emerging market ETFs like iShares Core MSCI Emerging Markets ETF (IEMG) and iShares MSCI Emerging Markets ETF (EEM), but there are over 100 products available [1] - A subset of emerging market ETFs incorporates human rights criteria, referred to as democracy-focused ETFs, which have generally outperformed core benchmarks [1] - In 2025, three out of five democracy-focused ETFs returned over 50%, while IEMG and EEM returned around 30% [1] - Year-to-date in 2026, four out of five democracy-focused ETFs are returning high teens to low double digits, compared to low teens for broader emerging market ETFs [1] - Higher allocations to countries like South Korea and Taiwan contribute to the stronger performance of democracy-focused ETFs [1] Opportunities in Democracy-Focused Emerging Market ETFs - The National Security Emerging Markets Index ETF (NSI) excludes companies that are national security threats or human rights violators, maintaining broad emerging market exposure [1] - The First Trust Emerging Market Democracies ETF (EMDM) tracks companies in emerging markets that meet minimum political rights and civil liberties standards [1] - The First Trust Emerging Markets Human Flourishing ETF (FTHF) focuses on companies in emerging markets with high Human Dignity Scores based on freedom metrics [1] - The OneAscent Emerging Markets ETF (OAEM) uses value-based screening to identify impactful investments while excluding harmful companies [1] - The Freedom 100 Emerging Markets ETF (FRDM) employs a freedom-weighting process to favor countries with stronger civil and economic institutions, avoiding exposure to China [1] Bottom Line - International equities, particularly emerging markets, are regaining attention, with a wider array of ETFs available to enhance international allocations beyond core holdings [1]

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GUY: OPENAI IS RAISING MONEY IN SAMSUNG'S RISING PRICES WITH HIKES BACK ON THE AGENDA ARE THE FED. SURPRISE SURPRISE. CRUDE IS CLIMBING AS THE RISK OF ANOTHER GOAL FOR GROWS.TOM: ENTHUSIASM ON SAMSUNG REFLECTED IN THE KOSPI, UP MORE THAN 3% SO FAR AND THE SESSION. THE CHIP STORY IS OF IMPACT WITH THE FUNDING RACE COMING THROUGH FROM OPENAI. EUROPEAN FUTURES TODAY CURRENTLY FLAT AFTER ANOTHER RECORD HIGH YESTERDAY.BRENT CRUDE UP .2 PERCENT ABOVE $70 A BARREL AROUND CONCERNS ABOUT THE MIDDLE EAST AND IRAN. TH ...

It's not a game in Shanghai, Shenzhen, and here in Hong Kong, you're watching the Chinese show. I'm not about rulers with David English. Good morning.Let's get to your top stories today. Asian stocks rising with Korea leading these gains after a tech led rebound and strong economic numbers boosting Wall Street. Investors also weighing the latest Fed minutes with officials indicating a shift away from agreeing on further rate cuts.Putting the central bank on a collision course with President Trump. Also ahea ...

SHERY: SHERY: THIS IS "THE ASIA TRADE." THIS IS "THE ASIA TRADE." AVRIL: AVRIL: ASIAN STOCKS SET FOR GAINS ASIAN STOCKS SET FOR GAINS AZTEC DRIVES A WALL STREET AZTEC DRIVES A WALL STREET REBOUND WITH JITTERS AROUND A REBOUND WITH JITTERS AROUND A DISRUPTION EASING. DISRUPTION EASING. OIL CLIMBS ON U.S.-IRAN OIL CLIMBS ON U.S.-IRAN TENSIONS.TENSIONS. THE LATEST FED MINUTES SHOW A THE LATEST FED MINUTES SHOW A FED SHIFTING FURTHER AWAY FROM FED SHIFTING FURTHER AWAY FROM FURTHER RATE CUTS, PUTTING THE FURTHE ...

Core Insights - The market has overlooked significant developments in AI technology application, with many businesses still exploring how to implement these technologies effectively [2] - There is a notable disconnect between Wall Street's perception of AI's success and the actual challenges faced by companies in implementing AI solutions [4][5] - The costs associated with AI development are substantial, with companies currently operating at a loss while trying to establish their AI models [10][12] Group 1: AI Implementation and Market Perception - Companies face internal constraints and political challenges when implementing AI in the workplace, which complicates the process [1] - Investors are uncertain about the impact of rapidly advancing AI models from companies like Anthropic, Google, and OpenAI, leading to declines in software-focused ETFs [8][9] - The market has shown a tendency to misjudge the timeline and feasibility of AI's widespread adoption, as evidenced by historical trends in other industries [3] Group 2: Financial Performance and Investment Opportunities - Major tech companies like Microsoft, Amazon, and Tesla have seen stock declines due to the high costs of their AI initiatives, with year-to-date losses of -15%, -9.6%, and -6.13% respectively [7] - The SPDR S&P Software & Services ETF has fallen more than 17.9% year-to-date, while the iShares Expanded Tech-Software Sector ETF is down 20.1% [8] - South Korean companies Samsung and SK Hynix are positioned as key players in the AI-capable flash memory market, with significant production capabilities compared to U.S.-based Micron Technology [17][18] Group 3: Valuation and Market Dynamics - The "Korea Discount" affects the valuation of South Korean companies, which are seen as undervalued despite their importance in the AI sector [20][21] - Increased foreign investment is helping to improve the P/E ratios of South Korean firms, although the market still trades at a discount compared to U.S. equities [22][23] - Investing in South Korean ETFs, such as the Franklin FTSE South Korea ETF and iShares MSCI South Korea ETF, provides exposure to leading companies in the AI space while mitigating risks associated with direct stock purchases [24][25][26]

Core Insights - The article emphasizes the importance of thorough testing and expert reviews in helping consumers navigate the complex tech product market [1][2][3] Group 1: Testing Methodology - The Reviews team employs a combination of objective measurements and real-world usage to evaluate tech products, ensuring that assessments reflect actual performance [3][15] - Testing methodologies are developed in-house and are consistent across different tech categories, focusing on hands-on use and clear criteria [7][15] - The team revisits and updates buying guides regularly to reflect the latest product releases and market changes, ensuring recommendations remain relevant [4][19] Group 2: Evaluation Criteria - Key elements evaluated in tech products include general performance, ease of setup, design quality, software experience, compatibility, and overall value [5][9] - Each product is compared against its competitors in the same category to assess its value proposition and performance [17][18] Group 3: Editorial Standards - The Reviews team maintains editorial independence, ensuring that recommendations are not influenced by brand payments or pre-publication reviews [6][7] - The team adheres to established journalistic standards focused on accuracy, fairness, and transparency in their reviews [7] Group 4: Product Categories - The team covers a wide range of tech products, including TVs, soundbars, headphones, smartwatches, fitness trackers, and smartphones, evaluating each category based on specific parameters [8][10][11][12][13][14]

Group 1: Nvidia's Stake in Arm - Nvidia sold its stake in Arm, which it had held since 2023, amounting to 1.1 million shares valued at $155.8 million as of the end of Q3 2024 [2] - Nvidia's initial investment in Arm was part of a group of strategic investors that collectively purchased $735 million of Arm shares during its IPO in 2023 [3] - The acquisition bid by Nvidia for Arm, valued at $40 billion, fell through in 2022 due to regulatory challenges [3] Group 2: Arm's Market Performance - Arm's market capitalization is approximately $135 billion, with a reported 26% year-on-year sales increase to $1.24 billion in its fiscal third quarter [4][6] - Analysts at Morgan Stanley noted Arm's earnings report indicated "AI project momentum" and high operational expenditures, suggesting long-term demand [6] - Despite a slight beat on guidance, Arm's shares dropped in after-hours trading following the earnings announcement, although the stock is up 16% year-to-date [6] Group 3: Ongoing Relationship Between Nvidia and Arm - Nvidia retains a 20-year license with Arm, with CEO Jensen Huang affirming continued support as a licensee [5] - Nvidia's Grace CPUs, which are based on Arm technology, highlight the ongoing collaboration between the two companies [5]

Financial Data and Key Metrics Changes - Cadence reported a 14% revenue growth for the fourth quarter and a 45% operating margin for the year, finishing 2025 with a record backlog of $7.8 billion [5][16] - Total revenue for Q4 was $1.44 billion and $5.297 billion for the year, with GAAP operating margin at 32.2% for the quarter and 28.2% for the year [16][17] - Non-GAAP operating margin was 45.8% for the quarter and 44.6% for the year, with GAAP EPS at $1.42 for the quarter and $4.06 for the year [17] Business Line Data and Key Metrics Changes - The core EDA business grew by 13% in 2025, with the recurring software business re-accelerating to double-digit growth in Q4 [10] - The IP business saw nearly 25% revenue growth in 2025, reflecting strong demand in AI, HPC, and automotive verticals [12][13] - The System Design and Analysis (SDA) business delivered 13% revenue growth in 2025, with a strategic shift towards annual subscription arrangements impacting year-over-year comparisons [51] Market Data and Key Metrics Changes - The semiconductor industry is projected to reach $1 trillion this year, indicating a healthier environment for Cadence's solutions [61] - China accounted for 12%-13% of revenue in 2024 and 2025, with expectations to maintain this range in 2026 [31] Company Strategy and Development Direction - Cadence is focusing on AI-driven solutions, with the launch of ChipStack AI Super Agent aimed at automating chip design and verification, providing up to 10x productivity improvements [7][8] - The company is expanding partnerships with leading foundries, including TSMC and Intel, to enhance AI flows and support next-generation designs [9] - The strategy includes a strong emphasis on agentic AI workflows, which are expected to increase the usage of Cadence's tools rather than displace them [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for Cadence's engineering software, emphasizing that AI tools are increasing the usage of their products [27] - The outlook for 2026 includes expected revenue in the range of $5.9 billion to $6 billion, with a GAAP operating margin of 31.75%-32.75% and non-GAAP EPS in the range of $8.05-$8.15 [19][20] Other Important Information - The company plans to use approximately 50% of its free cash flow for share repurchases in 2026 [19] - Cadence's AI-driven EDA, SDA, and IP portfolio positions the company well to capture significant opportunities in the evolving market landscape [15] Q&A Session Summary Question: Disruption in AI affecting demand for EDA or IP tools - Management clarified that there has been no discussion from customers about reducing the usage of Cadence's tools; instead, AI tools are increasing the usage of their software [24][27] Question: Key contributors to recurring revenue improvements - Management noted that strong backlog and broad portfolio proliferation across EDA, IP, hardware, and SDA are driving recurring revenue growth [30][32] Question: Verification and emulation hardware cycle - Management indicated that demand for hardware systems remains strong, with expectations for continued growth in this segment [34][36] Question: Benefits from AI workflows - Management highlighted significant productivity improvements from AI, with customers reporting up to 10x productivity gains in certain areas [43][44] Question: Transition to one-year license terms for SDA - Management acknowledged that the shift to annual subscriptions impacted SDA revenue growth but remains optimistic about its strategic trajectory [51] Question: COT chip proliferation among hyperscalers - Management confirmed that the trend of hyperscalers designing their own chips is accelerating, with expectations for increased EDA consumption [56][59]

Financial Data and Key Metrics Changes - Cadence reported a 14% revenue growth for the fourth quarter and a 45% operating margin for the year 2025, with total revenue reaching $1.44 billion for the quarter and $5.297 billion for the year [5][16] - The company achieved a GAAP operating margin of 32.2% for the quarter and 28.2% for the year, while the non-GAAP operating margin was 45.8% for the quarter and 44.6% for the year [17] - GAAP EPS was $1.42 for the quarter and $4.06 for the year, with non-GAAP EPS at $1.99 for the quarter and $7.14 for the year [17] Business Line Data and Key Metrics Changes - The core EDA business grew by 13% in 2025, with the recurring software business re-accelerating to double-digit growth in Q4 [10] - The IP business saw nearly 25% revenue growth in 2025, reflecting the strength of the expanding IP portfolio [12] - The hardware business had over 30 new customers and significantly higher repeat demand from AI and hyperscalers, with expectations for another record year in 2026 [10] Market Data and Key Metrics Changes - The company finished 2025 with a record backlog of $7.8 billion, indicating strong demand across all business lines [5][16] - China accounted for 12%-13% of revenue in 2025, with expectations to maintain this range in 2026 [31] - The semiconductor industry is projected to reach $1 trillion in revenue, indicating a robust market environment for Cadence [62] Company Strategy and Development Direction - Cadence is focusing on AI-driven solutions, with the launch of ChipStack AI Super Agent, which automates chip design and verification, providing up to 10x productivity improvement [7] - The company is expanding its partnerships with leading foundries, including TSMC and Intel, to enhance its AI capabilities [9] - Cadence aims to capture opportunities in the emerging physical AI market, particularly in autonomous driving and robotics [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for Cadence's engineering software, emphasizing that AI tools are increasing the usage of their software rather than displacing it [27] - The outlook for 2026 includes expected revenue in the range of $5.9 billion to $6 billion, with GAAP EPS projected between $4.95 and $5.05 [19] - Management noted that the design activity is accelerating across both semiconductor and system companies, indicating a healthier environment for 2026 compared to the previous year [62] Other Important Information - The company plans to use approximately 50% of its free cash flow for share repurchases in 2026 [19] - Cadence's AI workflows are expected to enhance productivity significantly, with customers reporting improvements of up to 10x in certain areas [43] Q&A Session Summary Question: Disruption in AI affecting EDA demand - Management indicated that there has been no discussion among customers about reducing the usage of EDA tools due to AI; instead, AI is increasing the usage of Cadence's tools [27] Question: Recurring revenue outlook for 2026 - Management highlighted that 67% of 2026 revenue is expected to come from beginning backlog, providing strong visibility into recurring revenue growth [32] Question: Verification and emulation hardware cycle - Management expects continued strong demand for hardware systems, which are essential for designing complex chips, and anticipates that this trend will continue [35] Question: Benefits of AI workflows - Management reported significant productivity improvements from AI workflows, with customers achieving up to 4x productivity gains in certain tasks [43] Question: Transition to one-year license terms for SDA - Management acknowledged that the transition to annual subscription arrangements has impacted SDA revenue growth but remains optimistic about its strategic trajectory [51]