Core Viewpoint - Nvidia reported strong earnings, exceeding analyst projections but falling short of the highest expectations, leading to investor disappointment [1][2]. Financial Performance - Fiscal first quarter sales are projected to be approximately $78 billion, surpassing the average analyst projection of 72.8% but just below the highest estimate of $80 billion [2]. - In the fourth quarter, revenue increased by 73%, reaching just over $68 billion, with profit at $1.62 per share, which was better than analyst expectations [3]. - The data center unit remains the primary revenue driver, while the gaming division showed some weakness, with revenue falling short of projections at around $4 billion compared to over $60 billion from the data unit [4]. Market Dynamics - The relationship between Nvidia's stock and market expectations has evolved over the past four quarters, indicating changing investor sentiment [5]. - The China market remains uncertain for Nvidia, with no significant assumptions made regarding data center revenue from this region in their first quarter sales outlook [6][7]. - Nvidia has received approval to initiate small-scale sales of 200 chips to China, but the overall impact remains uncertain due to potential regulatory responses from Beijing [7].

Pope said the acquisition is forecast to be accretive in the first year and supports long-term EPS and dividend growth expectations of 5% to 7%. She added that PGE expects to be “squarely above the midpoint” of that long-term range, citing factors including financing plans, cost management and integration opportunities.The company said it is partnering with Manulife Investment Management and its affiliate John Hancock, which will hold a 49% minority stake in the Washington business, with PGE owning 51% and ...

Core Insights - Advanced Energy Industries' shares increased by over 16% following a strong fourth-quarter earnings report that exceeded expectations and showed margin expansion despite factory closures in China [1] - The company reported significant growth in key markets, particularly data centers and semiconductors, which together accounted for nearly 80% of its revenue in the fourth quarter [2] Financial Performance - The fourth-quarter earnings report highlighted a 4% quarter-over-quarter growth in data center solutions and a remarkable 101% year-over-year increase, driven by ongoing investments in data centers to support AI applications [3] - Semiconductor solutions experienced an 8% quarter-over-quarter growth, indicating a recovery in momentum despite a 7% year-over-year decline [4] Future Outlook - CEO Steve Kelley expressed optimism about data center customer wins entering volume production in 2025 and anticipated a revenue growth of over 30% in 2026 due to advancements in 800V HDC data centers expected to launch in 2027 [5] - Although no specific growth guidance for semiconductor solutions in 2026 was provided, management noted that the positive momentum from the fourth quarter is expected to continue into the current quarter and the second half of the year [6]

Core Insights - Software stocks have stabilized after a recent decline, but experts express caution regarding future optimism in the sector [1] - UBS downgraded the U.S. technology sector to neutral, highlighting uncertainty in the software industry and anticipated moderation in AI infrastructure spending [1][7] AI Infrastructure Spending - UBS indicates that spending on AI infrastructure, which has surged over fourfold in the past three years, may be approaching its peak [2] - Major tech companies like Microsoft, Alphabet, Amazon, Meta, and Oracle are projected to report capital expenditures of up to $700 billion this year, raising concerns about their ability to recoup these investments [2] Market Dynamics - The AI boom has been a key driver of the bull market over the past three years, leading to questions about the sustainability of stock momentum without continuous investment from Big Tech [3] - UBS anticipates a slowdown in capital expenditure growth, which could alter investor perceptions positively for some companies but negatively for others in the enabling layer, including chip manufacturers like Nvidia, Broadcom, and Micron [4] Software Industry Concerns - Ongoing uncertainty regarding AI's impact on the software industry is expected to continue affecting the tech sector, as evidenced by the recent "SaaSpocalypse" triggered by AI startup Anthropic's new tools [5] - Increased competition within the software industry complicates investor confidence in growth rates and profitability, with UBS analysts predicting that this uncertainty will persist [6] Potential for Recovery - Jefferies analysts suggest that the anticipated slowdown in AI spending could serve as a catalyst for a rebound in software stocks, countering the negative effects of the recent downturn [6][7]

Core Viewpoint - CMS Energy is optimistic about its regulatory outcomes and growth prospects, particularly in renewable energy and large-load opportunities, while maintaining a focus on customer affordability and long-term investments [4][6][19]. Regulatory Developments - The company anticipates a favorable outcome from its pending electric rate case, expecting a return on equity (ROE) of 9.9% or better, supported by constructive positions from the Michigan Public Service Commission [1][6]. - CMS Energy received approval for a 20-year renewable energy plan, representing approximately $14 billion in customer investment opportunities over the next decade [2][6]. Financial Performance and Guidance - CMS Energy reported adjusted earnings per share (EPS) of $3.61 for 2025, exceeding guidance and reflecting over 8% growth from 2024 [8]. - The company raised its 2026 adjusted EPS guidance to a range of $3.83 to $3.90, indicating 6% to 8% growth from 2025 results [6][8]. Capital Investment Plan - The five-year utility capital investment plan has been expanded to $24 billion, up $4 billion, supporting approximately 10.5% rate base growth through 2030 [6][11]. - Major drivers of the updated plan include an integrated resource plan to be filed in mid-2026, which will address capacity needs and incorporate renewable energy sources [11]. Large-Load Opportunities - The company's large-load pipeline, particularly for data centers, is expanding, with potential projects requiring $2.5 billion to $5 billion of investment per additional gigawatt [5][14]. - The Large Load Tariff has been approved to facilitate data center growth while ensuring existing customers are not burdened with the costs [3][12]. Customer Affordability and Cost Savings - CMS Energy emphasizes customer affordability, noting that utility bills represent about 3% of total expenses, down 150 basis points from a decade ago [19]. - The company achieved over $100 million in savings in 2025 through efficiency efforts and estimates that energy waste reduction programs will save customers about $1.2 billion [20]. Financing Strategy - In 2025, CMS Energy invested $3.8 billion, funded through operating cash flow, bond and equity financings, while maintaining investment-grade credit metrics [21]. - For 2026, the company plans to issue over $1.7 billion at the utility level and approximately $700 million of equity at the parent level [21]. Dividend Policy - CMS Energy aims to continue dividend growth, targeting a payout ratio of about 60% in 2026 and approximately 55% over time [22].

Financial Data and Key Metrics Changes - Revenue for the full year 2025 was $30.9 billion, up 10% year-over-year, with a 9% increase on a constant currency basis [17] - Non-GAAP diluted EPS for the full year increased 4% to $11.02 [17] - Fourth quarter revenue increased 20% year-over-year to $8.7 billion, exceeding guidance [18] - Non-GAAP diluted EPS for the fourth quarter increased 48% to $4.39, above guidance [20] Business Line Data and Key Metrics Changes - Global Components revenue increased 8% year-over-year, while ECS revenue increased 18% [17] - Global Components sales in the fourth quarter were $5.9 billion, up 6% sequentially [21] - ECS sales in the fourth quarter increased to $2.9 billion, up 16% year-over-year [25] Market Data and Key Metrics Changes - Demand trends improved across core markets such as transportation, industrial, and aerospace and defense [21] - Backlog in ECS grew by over 75% year-over-year, reaching an all-time high [25] - Inventory management improved, with inventory turns reflecting disciplined working capital management [27] Company Strategy and Development Direction - The company focuses on expanding higher-margin value-added services, which now account for roughly 30% of total operating income [9] - Arrow aims to deepen customer engagement and improve returns through strategic outsourcing and recurring revenue models [12] - The company is committed to a disciplined capital allocation strategy, including share repurchases and investments in organic growth opportunities [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about gradual recovery in 2026, with demand levels improving in many markets [30] - Visibility beyond 90 days remains cloudy, but backlogs are extending, indicating positive momentum [76] - The company is focused on executing with discipline while managing costs and working capital carefully [32] Other Important Information - The company repurchased $50 million in stock during the fourth quarter and has returned approximately $3.6 billion to shareholders since 2020 [14] - The search for a permanent CEO is ongoing, with the board evaluating candidates [34] Q&A Session Summary Question: Can you comment on billing linearity through the quarter? - Management indicated that there was nothing unusual in billing or booking patterns during the fourth quarter, with all regions performing ahead of normal seasonality [41][42] Question: What drove strong sales in the Americas and ECS segment revenue growth in EMEA? - Management noted healthy demand in key verticals such as transportation and aerospace, with gradual improvements in the Western regions [54][56] Question: Can you discuss the strength in hardware categories and value-added services? - Hardware comprises 25% of ECS revenue, with growth driven by networking and security segments, while value-added services are being extended across multiple vertical markets [59][60] Question: How should working capital investment be viewed in relation to interest expense? - Management acknowledged that interest expense was lower than expected due to timing of cash flows and a favorable debt position, with expectations of increased working capital usage in the first quarter [71][72] Question: Will Western markets see above seasonal results in the recovery cycle? - Management confirmed that they expect above seasonal performance in Q1 across all regions, although visibility remains limited [78]

Financial Data and Key Metrics Changes - Revenue for full year 2025 was $30.9 billion, up 10% year-over-year, or up 9% on a constant currency basis [15] - Non-GAAP diluted EPS for the full year increased 4% to $11.02 [15] - Fourth quarter sales increased $1.5 billion year-over-year to $8.7 billion, up 20% versus the prior year, or up 16% on a constant currency basis [16] - Non-GAAP diluted EPS for the fourth quarter increased 48% to $4.39, driven by favorable sales results and a higher mix of value-added services [18] Business Line Data and Key Metrics Changes - Global Components revenue increased 8% year-over-year, while ECS revenue increased 18% year-over-year [15] - Global Components sales in the fourth quarter were $5.9 billion, up 6% versus the prior quarter [18] - Global ECS sales increased approximately $400 million year-over-year to $2.9 billion, up 16% versus the prior year [23] Market Data and Key Metrics Changes - Demand trends improved sequentially across regions, with healthy activity levels in transportation, industrial, and aerospace and defense markets [19] - Book-to-bill ratios improved in all three regions and are above parity, indicating a strengthening market environment [19] - Backlog growth was strong, finishing 2025 at an all-time high with over 75% year-over-year growth in ECS [23] Company Strategy and Development Direction - The company is focused on executing a strategy that emphasizes higher-margin value-added services, which now account for roughly 30% of total operating income [8][12] - The investment thesis includes a diversified business model that provides financial flexibility and resilience through cycles [9][10] - The company aims to expand its addressable market by moving beyond traditional distribution to become a go-to-market partner for suppliers [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a gradual recovery in 2026, with demand levels improving in many markets [28] - The company is focused on managing costs and working capital carefully while aligning investment levels with demand [30] - Visibility beyond 90 days remains cloudy, but backlogs are extending, indicating positive momentum [72] Other Important Information - The company repurchased $50 million in stock during the fourth quarter and has returned approximately $3.6 billion to shareholders since 2020 [12] - The board is actively searching for a permanent CEO, with updates to be provided once the process is complete [31] Q&A Session Summary Question: Can you comment on billing linearity through the quarter? - Management indicated that there was nothing unusual in billing or booking patterns during the fourth quarter, with all regions performing ahead of normal seasonality [39][40] Question: What drove strong sales in the Americas and EMEA regions? - Management noted healthy demand in key vertical segments such as transportation and aerospace, with gradual improvements in the Western regions [51][52] Question: Can you elaborate on the strength in ECS hardware and value-added services? - ECS hardware primarily includes storage, compute, and networking, with the highest growth in networking and security [56] - Value-added services are being extended across multiple vertical markets, contributing significantly to operating income [58][60] Question: How should we think about working capital investment and interest expense? - Management acknowledged that working capital investment typically increases during growth periods, impacting interest expense forecasts [66][68] Question: Will Western markets see above seasonal results in the recovery cycle? - Management stated that visibility is improving, and they expect above seasonal performance in Q1 across all regions [72][74]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $7.1 billion, an increase of 8% year-over-year, with adjusted operating margin at 6.5%, marking a record for the company [4][10] - Adjusted EPS rose 13% year-over-year to $0.87, reflecting strong execution [4][10] - Adjusted gross profit was $690 million, with adjusted gross margin improving to 9.8%, up 50 basis points year-over-year [10] Business Line Data and Key Metrics Changes - Reliability Solutions revenue reached $3.2 billion, up 10% year-over-year, with adjusted operating margin at 7.2%, up 50 basis points [11] - Agility Solutions revenue totaled $3.8 billion, up 6% year-over-year, with adjusted operating margin remaining at 6.3% [11][12] - Strong growth in data center-related markets was noted, while consumer-related markets showed softness [11][36] Market Data and Key Metrics Changes - The data center market is experiencing strong growth driven by AI workloads, with Flex positioned to support this demand through integrated solutions [5][6] - Health Solutions and core industrial markets are also seeing robust demand, particularly in medical devices and warehouse automation [7][8] Company Strategy and Development Direction - The company is focused on expanding its global footprint and investing in advanced technologies to manage complexities across industries [8] - Flex aims to be a strategic enabler for brands, helping them navigate complexities and improve performance [9] - The company is shifting towards higher-value, more complex product categories to drive margin improvement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of data centers and the overall business, with expectations for continued strong performance [20][21] - The company anticipates further investments in compute capacity due to upcoming AI programs, while maintaining a balanced approach to power and compute investments [20][21] - Management highlighted the importance of speed, flexibility, and resilience in adapting to market changes [8] Other Important Information - The company expects full-year revenue to be between $27.2 billion and $27.5 billion, with adjusted EPS guidance of $3.21 to $3.27 per share [15] - Cash flow for the quarter was $275 million, with a commitment to maintaining an investment-grade balance sheet [13][14] Q&A Session Summary Question: Opportunities in Data Center Growth - Management noted strong growth in both power and compute segments, with a focus on investments in both areas [20][21] Question: Operating Margin Ceiling - Management indicated that margins are expected to continue improving, with a focus on higher-margin segments [24][25][26] Question: Differentiation Between Embedded and Critical Power - Both segments are experiencing strong growth, with embedded power benefiting from technology shifts [32][33] Question: Agility Solutions Revenue Guidance - Management clarified that growth in agility is strong, driven by data center-related infrastructure, despite softness in consumer markets [36] Question: Impact of Amazon Warrant Deal - Management stated that the Amazon warrant deal is not expected to materially impact FY 2026 results [40][41] Question: Reliability Segment Margins - Strong margins in the reliability segment are attributed to mix impacts and growth in power and core industrial businesses [42][43] Question: U.S. Manufacturing Trends - Management refuted claims of U.S. manufacturing retreat, citing ongoing investments and customer demand [55][56] Question: Automotive Market Trends - Stabilization in the automotive sector is noted, with growth driven by investments in compute platforms rather than unit volume [60][61] Question: Effects of Rising Memory Prices - Management indicated that memory price increases are not significantly affecting demand in consumer markets, as procurement is handled by customers [63][64]

By Jeffrey Dastin SAN FRANCISCO, Feb 3 (Reuters) - Intel CEO Lip-Bu Tan on Tuesday said the company plans to build graphics processing units (GPUs), the category of chip ​popularized by Nvidia. "I just hired the chief GPU architect, and he's very good. ‌I'm very delighted he joined me," Tan said, claiming that it took some persuading. Qualcomm executive Eric Demmers last ‌month went to Intel, a move first reported by industry publication CRN and later confirmed by Demmers on LinkedIn. In an interview ...

Core Viewpoint - IES Holdings (IESC) is approaching a breakout in its stock performance ahead of earnings, with shares recently rising above a key buy point of 482.35 before closing at 475.04, indicating strong market interest in the company [1]. Group 1: Stock Performance - IES Holdings briefly broke out on Tuesday, surpassing its buy point of 482.35 [1]. - The stock closed at 475.04 after a slight dip on Wednesday, remaining close to the breakout level [1]. - IES Holdings has shown a rising price performance, achieving a Relative Strength Rating (RS Rating) upgrade to 92 [1]. Group 2: Technical Ratings - The company has seen its RS Rating jump to 93, indicating improving technical performance [1]. - IES Holdings has reached an 80-plus RS Rating benchmark, reflecting strong market momentum [1]. - The composite rating for IES Holdings has risen to 97, showcasing its overall strength in the market [1].