Timothy Breen, CEO, Niels Anderskouv, President and Chief Operating Officer, and Sam Franklin, CFO. A short while ago, we released GLOBALFOUNDRIES Inc.'s fourth quarter and full year 2025 financial results, which are available on our website at investors.gf.com, along with today's company slide presentation. This call is being recorded, and a replay will be made available on our investor relations webpage. During this call, we will present both IFRS and non-IFRS financial measures. The most directly compara ...

Financial Data and Key Metrics Changes - GlobalFoundries reported fourth quarter revenue of $1.83 billion, an 8% sequential increase and flat year-over-year [28] - Full year revenue reached approximately $6.791 billion, up 1% year-over-year [28] - Gross profit for the fourth quarter was $530 million, translating to a gross margin of approximately 29%, up 300 basis points sequentially and 360 basis points year-over-year [34] - Full year gross margin was 26.1%, an increase of 80 basis points year-over-year [34] - Net income for the fourth quarter was approximately $310 million, resulting in diluted earnings of $0.55 per share [35] Business Line Data and Key Metrics Changes - Smart mobile devices accounted for approximately 36% of fourth quarter revenue, with a 13% sequential decline and 11% year-over-year decrease [29] - Automotive represented approximately 23% of fourth quarter revenue, with a 40% sequential increase and 3% year-over-year growth [31] - Home and industrial IoT made up approximately 17% of fourth quarter revenue, with a 17% sequential increase but a 15% year-over-year decline [31] - Communications infrastructure and data center contributed approximately 12% of fourth quarter revenue, with a 29% sequential increase and 32% year-over-year growth [32] Market Data and Key Metrics Changes - Automotive revenue grew approximately 17% year-over-year to a record $1.4 billion [31] - Communications infrastructure and data center revenue grew 29% year-over-year, driven by strong momentum in optical networking and silicon photonics [32] - Satellite communications revenue exceeded $100 million in 2025, marking significant growth [32] Company Strategy and Development Direction - GlobalFoundries is focusing on three core pillars: technology differentiation, deep customer partnerships, and leveraging a diversified geographical footprint [7] - The company aims to reach a $1 billion run-rate revenue for silicon photonics by the end of 2028, driven by strong customer demand and recent acquisitions [15] - Significant investments include $16 billion in the U.S. and EUR 1.1 billion in the Dresden facility to expand manufacturing capabilities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term potential, citing record design win momentum and a clear path towards a richer mix of business [25] - The company is well-positioned to capitalize on megatrends such as AI data centers and the need for resilient semiconductor supply chains [11] - Management expects to achieve over 30% year-on-year revenue growth in communications infrastructure and data center for 2026 [25] Other Important Information - The board of directors authorized a share repurchase of up to $500 million, reflecting confidence in the company's financial position [37] - The company expects total revenue for the first quarter of 2026 to be $1.625 billion, with gross margin around 27% [38] Q&A Session Summary Question: Strategy for silicon photonics and differentiation - Management highlighted the strong demand for silicon photonics as a critical enabler for AI data centers, supported by acquisitions like AMF and InfiniLink [47][49] Question: Strategy with quantum computing - Management expressed excitement about quantum computing, emphasizing partnerships across various modalities to build scalable systems [52][54] Question: Supply side tightness and CapEx - Management noted strong demand in differentiated technology areas and emphasized capital efficiency in investments [58][60] Question: Margin structure and OpEx intensity - Management discussed the positive impact of a diversified portfolio on margins and the expected increase in OpEx due to strategic investments [63][66] Question: Synergies between recent acquisitions - Management confirmed synergies between photonics-oriented acquisitions and the broader portfolio, enhancing customer engagement and technology offerings [72][74]

Core Insights - GLOBALFOUNDRIES Inc. (GF) reported strong preliminary financial results for Q4 and FY2025, with revenue, gross margin, operating margin, and earnings per share exceeding guidance expectations [4][6][15] Key Fourth Quarter Financial Highlights - Q4 2025 revenue reached $1.830 billion, with a gross margin of 27.8% and a Non-IFRS gross margin of 29.0% - Operating margin was 13.9%, while Non-IFRS operating margin stood at 18.3% - Net income for Q4 was $200 million, with Non-IFRS net income at $310 million - Diluted earnings per share (EPS) was $0.36, and Non-IFRS diluted EPS was $0.55 [6][11][12] Key Full Year 2025 Financial Highlights - Total revenue for FY2025 was $6.791 billion, reflecting a 1% increase from FY2024 - Gross profit for the year was $1.690 billion, with a gross margin of 24.9% and a Non-IFRS gross margin of 26.1% - Operating profit was $797 million, a significant improvement from a loss in FY2024, resulting in an operating margin of 11.7% - Net income for the year was $888 million, compared to a loss in the previous year, with a diluted EPS of $1.59 [15][16] Recent Business Highlights - GF announced a share repurchase authorization of up to $500 million, allowing for discretionary stock buybacks over the next 12 months [4] - The company entered into an agreement to acquire Synopsys' ARC Processor IP Solutions business, enhancing its capabilities in physical AI applications [7] - GF also acquired Advanced Micro Foundry and Infinilink, strengthening its position in silicon photonics and high-speed connectivity chips [12][8]

Funding Announcement - Cadastral has raised $9.5 million in funding from notable investors including Navitas, JLL Spark Global Ventures, AvalonBay, Equity Residential, and 1Sharpe [2][3] Company Overview - Cadastral is an AI-native software company focused on providing vertically specific intelligence for the commercial real estate (CRE) industry [2] - Founded in 2023 and headquartered in New York, Cadastral aims to democratize access to AI agents and tools for real estate and private equity professionals globally [3] Product Development - The raised capital will be utilized to accelerate product development and enhance go-to-market strategies [2] - Cadastral is developing an 'AI analyst in a box' solution tailored for real estate, private equity, and private credit sectors [2]

Group 1 - Laird Superfood has agreed to acquire Navitas for $38.5 million, enhancing its portfolio in the organic food and beverage sector [1][2] - The acquisition will be financed through Nexus Capital Management's investment of $50 million in Series A stock of Laird Superfood [1][2] - Nexus will hold over 53.5% of Laird Superfood's issued stock post-acquisition, with five representatives on the board [3] Group 2 - Laird Superfood reported net sales of $36.5 million in the first nine months of the year, reflecting a 15% increase year-over-year [4] - The company experienced a net loss of $1.5 million, compared to a loss of $1.4 million in the same period of the previous year [4]

Group 1 - Laird Superfoods is acquiring Navitas for $38.5 million, nearly double Laird's market capitalization, to strengthen its position in the superfoods and wellness market [3][7] - The acquisition is expected to enhance supply chain synergies and expand Laird's reach in e-commerce and retail, aligning with its mission of providing functional wellness products [4][5] - Laird's recent quarter saw a 10% increase in net sales year-over-year, despite a loss of $1 million in sales during the same period [5] Group 2 - The deal will close in the first quarter of 2026 and will expand Laird's product portfolio to include Navitas' organic offerings such as acai powder and hemp bites [7] - Funding for the acquisition will come from the sale of $50 million in Series A convertible preferred stock to Nexus Capital Management [7]

Group 1 - The resumption of direct flights between India and China marks a significant step towards improving bilateral relations, although challenges remain regarding visa and investment restrictions [1][2][4] - Prior to the 2020 conflict, air traffic between the two countries was robust, with nearly 890,000 passengers in 2019, and an additional 1.2 million using third-country transfers [4] - Despite the resumption of direct flights, the number of Indian students in China has drastically decreased from 200,000 in 2019 to only 5,000 in 2024 due to tightened visa policies [6] Group 2 - Indian companies are facing challenges due to government-imposed visa restrictions, which hinder their ability to bring in Chinese technicians for equipment maintenance and installation [5][6] - There is a growing sentiment among Indian analysts that Chinese investment could help reduce India's $99.2 billion trade deficit and boost local manufacturing [6] - The relationship between India and China is influenced by broader geopolitical dynamics, particularly the evolving ties between India and the United States [5][6]

Core Insights - Gallium Nitride (GaN) has emerged as one of the most disruptive semiconductor technologies in the past decade, with a projected market size of $3 billion by 2030 [2] - The consumer and mobile sectors are expected to account for over 50% of the power GaN device market by 2030, driven by rapid charger adoption [2] - The automotive market is anticipated to be the next wave of expansion, with a projected compound annual growth rate (CAGR) of up to 73% from 2024 to 2030 [2] - Data centers are seeking energy-efficient solutions, with NVIDIA collaborating with wide bandgap chip manufacturers to integrate SiC and GaN technologies into their HVDC power systems [3] - The power GaN ecosystem is entering a decisive phase of consolidation and expansion, highlighted by significant acquisitions such as Infineon's $830 million acquisition of GaN Systems [6] Market Trends - The automotive and mobility sectors are expected to see significant growth, with GaN devices being widely used in LiDAR systems and on-board chargers [2] - The telecommunications market is projected to grow at an impressive CAGR of 53% from 2024 to 2030, driven by the adoption of GaN technology [3] - Innoscience is expected to maintain market leadership with a projected market share of 30% in 2024, supported by design orders in various sectors [6] Company Developments - Renesas Electronics, through its subsidiary Transphorm, is expected to achieve GaN revenue exceeding $100 million by 2026 [9] - Infineon is solidifying its position in the GaN space through its CoolGaN™ products and the acquisition of GaN Systems, while also collaborating with NVIDIA on a pilot production line [9] - Navitas is expanding its business from consumer markets to high-power markets, leveraging its GaNSafe technology [9] - EPC is innovating with a broad e-mode product portfolio, reinforcing its position as a key low-voltage GaN supplier [10] Competitive Landscape - Foundries are playing a crucial role in the GaN ecosystem, with companies like Polar Semi and PSMC entering the competition [10] - GlobalFoundries, X-FAB, and Vanguard are expanding their GaN product offerings, while Samsung is preparing to launch GaN products in 2026 [10] - Onsemi is expected to enter the GaN market soon, supported by its strong position in silicon and SiC [10]

Core Insights - The investor adopts a contrarian investment style, focusing on high-risk, illiquid options and shares, with a balanced portfolio of approximately 50% in each [1] - The investment strategy emphasizes buying stocks that have recently experienced sell-offs due to non-recurrent events, particularly when insiders are purchasing shares at lower prices [1] - Fundamental analysis is employed to assess the health of companies, including leverage and financial ratios compared to sector and industry averages [1] - Technical analysis is utilized to determine optimal entry and exit points, using multicolor lines for support and resistance levels on weekly charts [1] Investment Strategy - The investor's timeframe for holding positions ranges from 3 to 24 months [1] - A professional background check is conducted on insiders who purchase shares post-sell-off to gauge credibility and potential for future performance [1] - The approach includes screening through thousands of stocks, primarily in the US, but also considering international opportunities [1]

Core Viewpoint - Nvita's semiconductor shares have surged nearly 50% this week, reaching over three and a half year highs, primarily due to progress in developing new power chips for AI infrastructure in collaboration with Nvidia [1][5]. Company Overview - Nvita is a small-cap company with a market capitalization of around $2 billion, which has recently shown significant performance, particularly in the context of the Russell 2000 index [2]. - The company specializes in silicon carbide technologies, focusing on power generation solutions, integrated circuits, system controllers, and digital isolators to enhance efficiency and performance in AI-driven data centers [3][12]. Financial Performance - The stock has increased over 400% since May of the previous year, when it was trading around $2 per share, following the announcement of a $2.6 billion partnership with Nvidia [4][5]. - Nvita's sales last year were approximately $68 million, indicating a substantial potential revenue increase with the new partnership [6]. Market Context - The current market environment favors small-cap companies securing significant deals, with Nvita's partnership being a prime example of this trend [6][10]. - The company has faced structural challenges regarding profitability due to high capital expenditures aimed at improving technologies to meet Nvidia's requirements, resulting in flat to declining gross margins [7]. Industry Dynamics - Nvita's stock is sensitive to news related to China, given its exposure to commercial contracts in the region, which is affected by the fragile US-China relations [8][10]. - The broader market trend shows a rising interest in power efficiency technologies, with related companies, including battery backup firms, also experiencing stock price increases [11][12].