Financial Data and Key Metrics Changes - Revenue for the third quarter was $1.7 billion, down 10% sequentially and down 1% year over year [7][15] - Non-GAAP EPS was a loss of $0.30 per share, at the high end of the guidance range [18] - Cash and cash equivalents increased from $1.3 billion to $1.5 billion [18] Business Line Data and Key Metrics Changes - Client revenue was $927 million, down 10% sequentially [16] - Consumer revenue was $571 million, down 5% quarter over quarter [16] - Cloud revenue was $197 million, down 21% sequentially [16] - ASPs were down high single digits, reflecting continued oversupply in the market [8] Market Data and Key Metrics Changes - Analysts estimate cloud CapEx from major hyperscale providers grew over 50% to approximately $240 billion in calendar year 2024, expected to reach approximately $330 billion in 2025, a 40% increase [13] - Bit allocation to enterprise SSD applications increased to 12% this quarter, up from 8% in the same quarter of the prior year [13] Company Strategy and Development Direction - The company aims to create value for customers and shareholders while reaffirming leadership in the NAND market [5] - Focus on capital discipline and driving higher returns on invested capital [6] - Plans to reduce wafer production to align supply with demand and enable sustainable pricing [8] Management's Comments on Operating Environment and Future Outlook - Management sees an undersupplied market through the end of next year, with expectations for pricing to start increasing [26][27] - Positive signs include strengthening transactional markets and encouraging customer engagements [20] - The company expects revenue for the fourth quarter to be between $1.750 billion and $1.850 billion, assuming bit shipments to be flat and ASP to be up mid to high single digits [19] Other Important Information - The company recorded a noncash impairment charge of $1.83 billion, reducing the goodwill balance to $5 billion [18] - The company is beginning to move away from providing explicit guidance on cost per bit due to industry cost reductions from technology migrations [22] Q&A Session Summary Question: Can you discuss supply and demand dynamics? - Management sees an undersupplied market through the end of next year, with expectations for pricing to start increasing [26][27] Question: How is the enterprise SSD market performing? - Demand has been consistent, with expectations for a tripling of enterprise SSD revenue from FY 2024 to FY 2025 [34] Question: What are the expectations for gross margins? - Headwinds include underutilization charges and fab startup costs, but higher ASPs are expected to help gross margins overall [38] Question: How is the company managing capacity and bit growth? - The company is carefully managing capacity to avoid oversupply while ramping up higher layer count and more density per wafer [41] Question: What is the outlook for NAND bit shipments? - The company expects NAND bit volume to grow low double digits this calendar year, with good visibility across various markets [56][58] Question: How does the yen exchange rate impact costs? - The front end is exposed to the yen, but not all costs are yen-denominated, which should be considered in modeling [81]

Group 1: Market Overview - The stock market has recently rebounded as investors assess the impact of tariffs on global trade, yet many stocks remain significantly below their all-time highs [1] - Market drawdowns present opportunities for investors to acquire growth stocks at discounted prices, which can lead to long-term wealth accumulation [2] Group 2: Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the world's largest manufacturer of advanced semiconductors, serving major clients like Apple and Nvidia, and is positioned well in the growing cloud computing and AI markets [3] - TSMC reported trailing-12-month revenue of $97 billion, with its high-performance computing segment accounting for 59% of sales and experiencing 7% quarter-over-quarter growth [4] - The company boasts a 48.5% operating margin due to its dominant market position, allowing it to sell products at premium prices [5] - TSMC's stock is currently down 27.5% from all-time highs, trading at a price-to-earnings ratio of 21, indicating potential for significant growth over the next decade [6] Group 3: Coupang - Coupang, a South Korean e-commerce platform, is trading over 50% below its all-time highs despite strong business growth and increasing profitability [7] - The company achieved a 29% year-over-year growth in gross profit last quarter, with a gross margin of 29%, and has been positive in free cash flow since early 2023 [8] - Coupang's overall revenue reached $30 billion in 2024, with a 136% year-over-year growth in the first quarter, excluding inorganic revenue [10] - With a market cap of $42 billion, Coupang trades at a price-to-sales ratio above 1, suggesting it is undervalued given its growth potential [11] Group 4: Rocket Lab - Rocket Lab has seen its stock decline nearly 29% from all-time highs, despite a 78% year-over-year revenue increase to $436 million in 2024 [13] - The company currently operates the Electron rocket and plans to launch the Neutron, which has a larger payload capacity, potentially increasing revenue per launch [14] - Rocket Lab is developing a robust space systems division and aims to build a satellite constellation, which could significantly enhance its revenue in the long term [15] - With a market cap of $10 billion, Rocket Lab's stock may appear overvalued relative to its current revenue, but successful execution of its product roadmap could lead to substantial future growth [16]