Key Takeaways PTCs Q3 EPS expected at $1.05$1.30 with revenue up to $600M, supported by CAD, PLM and AI demand.AI upgrades across PLM, ALM, SLM and CAD are driving product enhancements and customer adoption.PTC expects Q3 free cash flow of $230M-$235M and operating cash flow of $234M-$239M.PTC Inc. (PTC) is scheduled to report third-quarter fiscal 2025 results on July 30, after market close.For the quarter, PTC anticipates revenues between $560 million and $600 million. Non-GAAP EPS is projected in the rang ...

Core Insights - Western Digital Corporation (WDC) is set to release its fourth-quarter fiscal 2025 results on July 30, with earnings estimated at $1.47, reflecting a 2% growth year-over-year [1] - Revenue estimates are pegged at $2.45 billion, indicating a significant decline of 34.8% from the previous year [2] - The company has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 7.3% [2] Revenue and Earnings Expectations - The consensus estimate for revenues stands at $2.45 billion, which is a 34.8% decline from the prior-year quarter [2] - Management projects non-GAAP earnings of $1.45, with a potential variance of +/- 20 cents [1][2] - WDC anticipates sequential revenue growth in Q4, driven by strong demand from cloud service providers [3][4] Market Demand and Product Performance - Continued strong demand from cloud service providers is expected to benefit WDC's fiscal fourth-quarter performance, with cloud revenues reaching $2 billion, up 38% year-over-year [3] - The company has shipped over 800,000 units of its 11-disk drives in the fiscal third quarter, with expectations to exceed 1 million units in the June quarter [4] - Management is focusing on HAMR technology and has secured long-term agreements with two major customers through mid-2026 [4] Strategic Initiatives and Innovations - WDC is investing in generative AI-driven storage deployments, which are anticipated to refresh client and consumer devices, thereby increasing content growth across various platforms [5] - The company has established a separate entity, Sandisk, to further expand its Flash business [5] - Recent developments include a partnership with Ingrasys to engineer a new Top-of-Rack Ethernet Bunch of Flash switch, aimed at meeting the surging data demands of AI workloads [13] Financial Strategies - WDC has launched a $2 billion share buyback program, reflecting a strong capital allocation strategy focused on long-term returns for investors [14] - Management expects operating expenses to rise slightly to $330–$340 million due to increased variable pay, new hires, and R&D investments [11] Challenges and Market Conditions - Ongoing macroeconomic volatility and trade conflicts are likely to impact WDC's performance in the upcoming quarter [6][10] - Despite broader uncertainties, demand from hyperscale customers remains strong amid a constrained supply situation [10]

Core Insights - Nebius Group N.V. (NBIS) is projecting a return to positive adjusted EBITDA in the second half of 2025, driven by increasing revenues, global expansion, and a focus on technological innovation [1][9] - The company reported a significant year-over-year revenue increase of 385% in Q1 2025, reaching $55.3 million, and expects full-year revenues between $500 million and $700 million [4][9] - Nebius is enhancing its AI infrastructure with a $2 billion capital expenditure plan for 2025, up from an earlier estimate of $1.5 billion [3] Company Performance - Nebius is experiencing strong growth in its core AI business, benefiting from a full-stack approach that includes high-performance GPU cloud infrastructure and AI development tools [1] - The company has expanded its global infrastructure with data centers in the United States, Europe, and the Middle East, which is expected to enhance its market share in AI cloud computing [2][9] - Nebius has upgraded its AI cloud infrastructure significantly in Q1 2025, improving reliability and reducing downtime to boost customer retention [2] Competitive Landscape - Nebius competes with major players like CoreWeave, Inc. and Microsoft Corporation, both of which are also experiencing substantial growth in the AI cloud computing sector [6] - CoreWeave reported a 420% year-over-year revenue increase to approximately $981.6 million in Q1 2025, highlighting the competitive nature of the market [7] - Microsoft Corporation's operating income increased by 16% year-over-year, indicating strong performance among competitors [8] Financial Outlook - Despite the anticipated positive adjusted EBITDA in H2 2025, management has indicated that adjusted EBITDA will remain negative for the full year of 2025 due to high capital expenditures and operational costs [5] - Nebius expects EBIT margins to be in the range of 20% to 30% over the medium term, supported by the scaling of its AI cloud business [4] Market Performance - Shares of Nebius have increased by 85.4% year-to-date, outperforming the Internet – Software and Services industry's growth of 28.4% [10] - The company's shares are currently trading at a price/book ratio of 3.83X, lower than the industry's ratio of 4.25 [11]

Core Viewpoint - Nvidia stock has the potential to reach $300 within the next two years, driven by strong revenue growth and a favorable position in the AI market [1][9]. Financial Performance - Nvidia's stock price has increased from approximately $95 to around $174 in just three months, reflecting a nearly 4x increase over the past two years [1]. - The company's revenues grew almost 2x over the last 12 months, with an average annual growth rate of about 69% over the past three years [4]. - Projected revenues could rise from around $131 billion in FY'25 to approximately $334 billion by FY'27, representing over 2.5x growth [4]. Market Trends - The demand for high-performance computing is expected to soar, particularly with the evolution of AI towards Artificial General Intelligence (AGI), which requires significant computational resources [6]. - Nvidia's GPUs are currently the industry standard for powering workloads associated with AGI, positioning the company to benefit from this technological shift [6]. Competitive Landscape - Nvidia has received assurances from the Trump administration to resume sales of its H20 AI chip to China, preserving access to a major AI market [5]. - The company is facing competition in the lower-end market from AMD, which could impact margins [8]. Profitability and Valuation - Nvidia's net margins have improved from about 25% in FY'19 to over 51% in FY'25, driven by better economies of scale and a favorable product mix [8]. - If earnings grow 2.5x, the price-to-earnings (PE) multiple could stabilize around 28x, suggesting a potential stock price of over $300 [9].

A survey by CREATE-Research found that nearly 30% of institutional investors have deployed or are implementing generative AI. https://t.co/Uf1Uc2nAKD ...

Summary of the One Big Beautiful Tech Tax Bill (OBBBA) Conference Call Industry Overview - The conference call focuses on the impact of the One Big Beautiful Bill Act (OBBBA) on the technology sector, particularly large tech companies including Amazon, Apple, Google, Meta, and Microsoft [1][12][14]. Key Points and Arguments 1. **Free Cash Flow (FCF) Enhancement**: The OBBBA is expected to significantly boost near-term FCF for major tech companies by restoring 100% bonus depreciation and allowing immediate R&D expensing. This could result in billions of additional FCF for these companies in the upcoming year, enhancing their flexibility for mergers and acquisitions (M&A), innovation, and shareholder returns [1][12][14]. 2. **Framework for Analysis**: A framework was created to analyze the OBBBA's impact on FCF, allowing for sensitivity testing around cash flow outcomes. The analysis was conducted in collaboration with various teams within the organization [3][6]. 3. **Quarterly Tax Payment Adjustments**: Companies are expected to adjust their estimated quarterly tax payments to reflect the OBBBA's impact, potentially leading to higher FCF guidance and upside surprises [4][5]. 4. **Caution on Cash Flow Multiples**: Investors are advised to be cautious when assigning multiples to the incremental cash flow, as it primarily reflects a timing benefit rather than a structural change in cash flow generation [5][6]. 5. **Impact Variability**: The ultimate impact of the OBBBA will vary based on each company's tax planning strategy and accounting practices, which are not fully visible in GAAP financials [6][12]. 6. **R&D and Capital Expenditure Benefits**: The OBBBA allows retroactive expensing of capitalized R&D, leading to significant reductions in cash taxes and revisions in FCF. Companies like Google, Microsoft, and Apple may benefit from accelerating their R&D deductions, while Amazon and Meta will see more evenly spread benefits over the next 2-3 years [9][14][22]. 7. **Company-Specific Impacts**: - **Amazon**: Expected to see a ~30% (~$15 billion) lift to FCF in 2026 due to high capex levels and R&D intensity. This benefit is anticipated to recur annually, providing flexibility for further investments [23][24]. - **Apple**: Anticipated to gain ~$10 billion in added cash in FY2026, with potential reinvestments in data center infrastructure and other strategic areas, while maintaining its capital allocation strategy [28][31]. - **Google**: Projected to have a $25 billion (31%) uplift in 2025 FCF, driven by its large deferred tax assets. Long-term benefits are expected to be around $4-$6 billion [30][32]. - **Meta**: Expected to see a ~$8-$10 billion tailwind in FCF through 2028, with benefits spread evenly over the next couple of years [33][34]. - **Microsoft**: Estimated to gain ~$10 billion in FCF in the next year, with excess cash potentially used for opportunistic M&A [35][36]. Additional Important Content - **Tax Rate Changes**: The OBBBA modifies the Tax Cuts and Jobs Act (TCJA) provisions, increasing the effective tax rate on foreign-derived income from 13% to 14% starting in 2026, which may lead to more tax savings for qualifying companies [16][17]. - **Long-Term Strategic Flexibility**: The incremental cash flow benefits from the OBBBA are expected to provide companies with more flexibility to invest in AI infrastructure and other strategic initiatives, rather than altering their core investment strategies [22][35]. Conclusion The OBBBA is poised to deliver significant near- and medium-term benefits to major tech companies, enhancing their FCF and providing strategic flexibility for future investments and shareholder returns. The impact will vary by company based on their specific tax strategies and capital expenditures.

Core Viewpoint - Meta Platforms is positioned to potentially join the $2 trillion market cap club, driven by advancements in generative AI and strong financial performance [5][12]. Group 1: Financial Performance and Market Position - Meta currently has a market cap of approximately $1.8 trillion, making it about 11% away from reaching the $2 trillion milestone [5]. - The company experienced a 16% revenue growth in the last quarter, with operating income increasing by 27% year over year [9]. - Meta has $70 billion in cash on its balance sheet and repurchased $13.4 billion worth of its stock in the first quarter, indicating strong cash flow management [10]. Group 2: AI Opportunities - CEO Mark Zuckerberg identified five major opportunities for Meta through AI, including improved advertising, more engaging user experiences, business messaging enhancements, a stand-alone AI chatbot, and device innovations [6][13]. - AI is expected to enhance advertising effectiveness by optimizing ad pricing and creating automated marketing campaigns, potentially increasing the number of advertisers on Meta's platforms [6]. - The expansion of AI capabilities is anticipated to improve user engagement across Meta's apps, leveraging larger data sets for better recommendations [7]. Group 3: Future Growth Potential - The integration of AI is projected to generate strong double-digit revenue growth for Meta in the coming years [9]. - The development of AI agents for WhatsApp for Business could unlock a $100 billion opportunity, enhancing customer service and sales capabilities [13]. - The stock is currently trading at 28 times earnings, with potential for multiple expansion as the company continues to outperform expectations, which could drive the stock to a $2 trillion valuation [11].

Apple's AI lag has needed Laura Martin warning investors to be cautious heading into the print. Remember she downgraded shares to hold back in June. It was captivating everyone's attention.Laura joins us now and I mean it was a good call Laura but the now going into earnings I guess a similar question for you is has that bar now reset low enough that Apple can kind of you know remind people it still puts out a ton of cash. It still makes a lot of money. People still buy iPhones and you know is that good eno ...

Core Viewpoint - Apple Inc. is under increasing pressure from investors due to concerns over its generative AI strategy, which is crucial for growth in the tech sector, with its shares down 14% year-to-date compared to the S&P 500's 8% gain [1][6]. Investment Strategy - The upcoming fiscal third-quarter earnings call on July 31 is critical for Apple to present a substantial generative AI investment roadmap, potentially involving significant capital expenditure increases and a multi-billion dollar acquisition [2][7]. - Analysts suggest that Apple may need to increase its capital expenditure guidance from $12 billion in fiscal 2025 to between $30-$50 billion annually to develop GenAI-ready infrastructure [8]. Competitive Landscape - Alphabet Google has been identified as the fastest adopter of generative AI among major tech companies, embedding it across its product suite, which has resulted in Apple's iOS lagging behind Android [4]. - Apple faces a widening innovation gap, particularly as the iPhone remains its anchor product, which could pose an existential threat if not addressed [4][10]. Talent and Resource Allocation - There are concerns that Apple may struggle to retain top AI talent due to fierce competition from companies like Meta Platforms and OpenAI, especially if it does not provide the necessary tools and freedom for GenAI integration [5][9]. - Analysts predict that Apple will incur higher operating expenses due to the need for additional GenAI engineers and cloud usage costs, as it currently lacks its own cloud business [9][15]. Financial Metrics and Valuation - Apple's stock trades at a forward FY2026 P/E of approximately 27.7x, significantly higher than its historical average of ~17x and the S&P 500's average of ~22x, indicating that a major iPhone upgrade cycle is necessary to justify this premium [12][13]. - Despite trading at a premium, Apple is experiencing the slowest revenue and margin growth among its peers, with competitors reporting 2-3 times faster revenue growth and 3-12 times faster margin expansion [13]. Strategic Disadvantages - Apple is at a structural disadvantage as it can only use generative AI to enhance its own ecosystem, while competitors like Google and Amazon can monetize their AI advancements through external licensing and cloud services [14][15]. - Without a strategic generative AI plan, Apple risks losing its competitive edge and market share, particularly as rivals develop platforms that bypass Apple's ecosystem [16].

Core Insights - ServiceNow is experiencing significant growth, with its stock increasing by 25% over the last year [1] - The latest earnings report showed revenue exceeding $3.2 billion, with earnings surpassing forecasts, leading to a surge in stock price [2] - The company has raised its revenue outlook for the full year, indicating strong future performance [2] Company Performance - The "Now Assist" platform utilizes generative AI to automate workflows across various sectors, leading to a surge in deal volume for AI-powered products [3] - ServiceNow secured nearly 90 agreements worth over $1 million each in the last quarter, with over 500 customers spending more than $5 million annually [3] - The demand for ServiceNow's offerings suggests significant longevity for the stock [3] Market Opportunities - ServiceNow is making strides in the public sector, assisting government agencies with modernization efforts, which presents a vast growth opportunity [4] - The ongoing digital upgrades in local and federal agencies provide a consistent source of recurring revenue [4] Future Outlook - If ServiceNow continues to capitalize on the AI trend and secures major enterprise contracts, the momentum may persist [5] - The company's central role in digital workflows and enterprise AI indicates potential for further expansion, especially if the broader tech rally continues [5]