Market & Rate Cut Expectations - The market anticipates a rate cut in September, with a high probability (96% chance of a 25 basis point cut and a 4% chance of a 50 basis point cut) factored into expectations [2][3] - PPI is expected to align with expectations, similar to CPI, and is unlikely to alter the prevailing narrative of a rate cut [2][3] - The market is primarily focused on the Federal Reserve's actions in September and the potential for a new trade agreement [6] Geopolitical Risk - The meeting between Vladimir Putin and President Trump in Alaska is not expected to pose a direct market risk, despite potential geopolitical and precedent risks [4][5] AI Infrastructure - The discussion highlights the ongoing AI revolution and the investment opportunities within AI infrastructure [6][7] - Companies are announcing tens of billions of dollars of investment into AI infrastructure [9] - AECOM is identified as a potential beneficiary of AI infrastructure spending, providing engineering, consulting, and construction services to data centers [8][9][10] Municipal Bonds - Municipal bonds have faced price struggles year-to-date due to issuers pulling forward new issuance [10][11] - Reduced issuance for the remainder of the year, coupled with consistent demand, is expected to drive prices higher [11] - Tax-free income from municipal bonds is attractive to high net worth investors, making them a favored investment [12] - Investors focused on income potential should prioritize the coupon from bond ETFs and consider buying individual bonds for a dependable income stream and principal protection [13][14]

We have earnings. Cisco results are out. Christina Parts Neville is back with the numbers.Hi, Christina. >> Hi. So, Cisco posting a top and bottom line beat with earnings per share of 99 cents on revenues of 14.67% billion within the quarter.Networking revenue actually grew 12%. They're seeing gross margins, adjusted operating margins falling in line with estimates. The company did uh see growth across all geographies.As for their Q1 revenue guide, that midpoint coming in a little bit higher than street est ...

Welcome back. Take a look at shares of Core Weave. The AI infrastructure provider falling this morning.Larger than expected net loss in Q2 and a miss on fullear revenue guidance did weigh on the stock. Our next guest just raised his target on the stock. He was at 60 goes to 105.That was a 75% increase. And he joins us with his re his reaction. Wells Fargo software analyst Michael Turan's with us.Michael, appreciate the time this morning. Welcome back. >> Thanks very much.Appreciate you having me, Carl. Were ...

Financial Data and Key Metrics Changes - Fourth quarter revenue was $480.7 million, exceeding the high end of revised guidance, with non-GAAP EPS of $0.88 [16] - Fiscal year 2025 net revenue was $1.65 billion, up 21% from fiscal year 2024 [19] - Non-GAAP gross margin for the fourth quarter was 37.8%, up 260 basis points sequentially and 1,000 basis points year over year [17] - Non-GAAP operating margin for the fourth quarter was 15%, up 420 basis points sequentially and over 2,000 basis points year on year [17] Business Line Data and Key Metrics Changes - Cloud and networking segment revenue for Q4 was $424.1 million, increasing 16% sequentially and 67% year over year [20] - Industrial tech segment revenue was $56.6 million, down 6% sequentially but up 6% year over year [21] - Cloud and networking segment profit was 23.6%, up 360 basis points sequentially and 1,350 basis points year over year [21] Market Data and Key Metrics Changes - The company expects to surpass $600 million in quarterly revenue by June 2026 or earlier, driven by strong demand in cloud and AI applications [6][7] - Cloud revenue is growing over 20% annually, with expectations for continued strength in components and cloud modules [6][37] Company Strategy and Development Direction - The company is focusing on three significant growth areas: cloud modules, optical circuit switching (OCS), and co-packaged optics (CPO) [10] - The company is positioned to capture significant value from the AI infrastructure market, with technologies projected to become multibillion-dollar markets within five years [6] - The company is expanding its manufacturing capacity to meet high demand, particularly in the cloud and networking segment [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained growth driven by the rapid adoption of AI, highlighting the effectiveness of their strategy and operational resilience [14] - The company anticipates a breakout year for laser chip sales in 2026, with demand expected to outpace supply [9] - Management noted that the tariff situation is fluid but does not expect material changes to business operations due to tariffs [53][56] Other Important Information - The company invested $59 million in CapEx during Q4, primarily focused on manufacturing capacity to support cloud customers [20] - The company is transitioning from three-inch to four-inch wafers to increase capacity [102] Q&A Session Summary Question: Update on OCS award and revenue trajectory - Management indicated that the OCS revenue is ramping better than expected, with significant revenue anticipated in early 2026 and a more meaningful inflection point in the second half of 2026 [29][30] Question: CPO opportunity and competitive landscape - Management feels confident in maintaining a competitive edge in the CPO market due to unique power levels and reliability of their lasers [32] Question: Contributions to the $600 million revenue target - Management expects continued strength in components, significant contributions from cloud modules, and revenue from OCS to help achieve the target [37] Question: Semiconductor tariffs impact - Management believes their products are exempt from new tariffs and does not expect material impacts on operations [53][56] Question: EML wafer fab capacity and pricing dynamics - Management confirmed they are transitioning to larger wafers to increase capacity and anticipate pricing discussions to become more significant due to limited supply and high demand [102][104] Question: Profitability of OCS product offering - Management stated that OCS will be significantly above corporate margin averages and will be accretive to margins as volume ramps up [110]

AI Infrastructure & Market Trends - CoreWeave (CRWV) is emerging as a major force in the AI infrastructure boom, with Wall Street potentially underestimating its growth potential [1] - Rising demand for compute power is reshaping the market, potentially leading to massive gains for CoreWeave and other AI infrastructure stocks [1] - AI spending is expected to accelerate into 2026, benefiting specific sectors [1] Investment Strategies & Risks - The discussion covers growth versus value strategies in the context of AI infrastructure investments [1] - Risks from energy grid limits are a consideration for AI infrastructure growth [1] - Hedge funds may be underinvested in AI infrastructure [1] Podcast & Information - Trader Talk on Yahoo Finance provides expert analysis and actionable insights for navigating market volatility [1] - The podcast is for informational and educational purposes only and should not be construed as investment advice [1] - Listeners should consult their own financial, legal, or tax advisors [1]

Core Insights - The rapid advancement of humanoid robots is expected to lead to their integration into everyday life within a decade, as noted by Brett Adcock, founder of Figure AI [1][2] - The shift towards robotics in various sectors, including logistics and industrial operations, is already underway, with companies like Amazon and Walmart leading the way [3][4] - Innovations in robotics, such as self-replicating robots and living robots created from stem cells, indicate a future where robots can adapt and heal [5][6] Industry Trends - The AI and robotics sector is experiencing a significant transformation, comparable to the Industrial Revolution, with robots taking over physical tasks traditionally performed by humans [8][9] - Major tech companies are projected to spend over $400 billion on capital expenditures related to AI infrastructure in the coming year, a substantial increase from previous years [14][16] - Companies like Arista Networks and MP Materials are benefiting from this surge in AI infrastructure spending, with strong earnings reports reflecting ongoing investment in AI technologies [17][20] Investment Opportunities - The current landscape for humanoid robots is likened to the early 2000s smartphone market, suggesting significant investment potential as the technology matures [10][11] - The focus on AI infrastructure investments is expected to yield new AI models and services that will be rapidly adopted by enterprises and consumers [20][21] - Analysts recommend investing in companies positioned to benefit from the influx of capital into AI infrastructure, highlighting names like Arista Networks and MP Materials [19][20] Economic Outlook - The Federal Reserve is anticipated to implement a rate cut in September, which could influence market dynamics depending on the perception of the cut's rationale [22][24] - Economic indicators suggest a slowing economy, prompting discussions on the appropriateness of adjusting the federal funds rate [23][24]

Core Viewpoint - Microchip Technology Incorporated reported strong sequential revenue growth of 10.8% to approximately $1.0755 billion for the quarter ended June 30, 2025, indicating a positive trend as the company emerges from an industry downturn [2][4]. Financial Performance - Net sales for the quarter were $1.0755 billion, a 10.8% increase sequentially but a 13.4% decline year-over-year from $1.241 billion [4][6]. - On a GAAP basis, the gross profit was 53.6%, with an operating income of $32.1 million, representing 3.0% of net sales, and a net loss attributable to common stockholders of $46.4 million, or a loss of $0.09 per diluted share [4][7]. - Non-GAAP results showed a gross profit of 54.3%, operating income of $222.3 million (20.7% of net sales), and net income of $154.7 million, translating to an EPS of $0.27 per diluted share [4][8]. Inventory Management - The company achieved a significant inventory reduction of $124.4 million during the June quarter, with distribution inventory days decreasing by 4 days to 29 days and overall inventory days on the balance sheet declining to 214 days [2][4]. Strategic Initiatives - Microchip's Total System Solutions strategy is securing design wins with tier-one cloud providers for AI infrastructure and defense applications, aligning with global defense spending trends [2][4]. - The company anticipates September quarter net sales of approximately $1.130 billion, representing about 5.1% sequential growth at the midpoint, supported by a backlog running ahead of June quarter levels [2][4]. Dividend and Shareholder Returns - Approximately $245.5 million was returned to common stockholders through dividends in the June quarter, with a quarterly dividend of 45.5 cents per share declared for the September quarter [4][9]. Future Outlook - The company expects continued operational leverage to support sustained margin expansion and enhanced cash flow generation as demand conditions improve [2][4]. - Capital expenditures for the quarter ending September 30, 2025, are projected to be between $35 million and $40 million, with total capital expenditures for fiscal 2026 expected to be at or below $100 million [15].

AI infrastructure firm WhiteFiber raised $159.4 million in an IPO, pricing its shares at the top of a marketed range, according to a person familiar with the matter https://t.co/MhNi2LfEAa ...

Summary of Super Micro Computer Inc. (SMCI) Earnings Call Company Overview - **Company**: Super Micro Computer Inc. (SMCI) - **Industry**: AI server and storage systems Key Financial Metrics - **F4Q25 Revenue**: $5.76 billion, missing the consensus estimate of $5.98 billion [1][6] - **Gross Margins**: 9.6%, below the expected 10% [1][6] - **F1Q26 EPS Guidance**: $0.40-$0.52, missing the consensus of $0.59 [1][3] - **F2026 Sales Outlook**: At least $33 billion [1][4] Core Insights - **Earnings Miss**: SMCI's F4Q25 EPS of $0.41 missed the consensus of $0.44-$0.45, indicating a revenue and margin miss [2][6] - **Revenue Breakdown**: - Server & storage systems: $5.62 billion, down 3% YoY - Subsystems & accessories: $139 million, down 38% YoY [7][8] - **Operating Income**: Non-GAAP operating income of $312 million, missing estimates of $357 million [6][8] Competitive Landscape - **Market Dynamics**: The company is facing intensified competition in the AI server market, which is becoming increasingly commoditized [1][10] - **Customer Delays**: Continued delays in customer platform decisions are impacting revenue [1] Additional Considerations - **Stock-Based Compensation**: Approximately $69 million in stock-based compensation was reported, netting a tax effect of $20 million excluded from non-GAAP net income [3] - **Investment Rating**: Goldman Sachs has a "Sell" rating on SMCI with a 12-month target price of $24, reflecting a potential downside of 58.8% from the current price of $58.23 [9][13] Risks and Opportunities - **Upside Risks**: Stronger-than-expected demand for AI servers, market share gains, core operating margin improvement, and customer diversification are potential upside risks [9] - **Long-term Outlook**: While SMCI has established partnerships with key AI component suppliers like NVIDIA and AMD, the competitive landscape poses risks to profitability [10]

Core Insights - Astera Labs reported strong financial results for Q2 2025, with a sequential revenue growth of 20% and a year-over-year increase of 150% [2][4][5] - The company is focusing on ramping its PCIe 6 product portfolio for customized rack-scale AI systems and has secured multiple new design wins for its Scorpio Fabric Switches [2][4] - Astera Labs is positioned as a leader in the AI infrastructure transformation, emphasizing investments in next-generation connectivity solutions [2][4] Financial Highlights - Record quarterly revenue of $191.9 million, up 20% quarter-over-quarter and 150% year-over-year [4][5] - GAAP gross margin of 75.8% and GAAP operating income of $39.8 million, resulting in a GAAP operating margin of 20.7% [5][21] - Non-GAAP net income of $78.0 million, with a non-GAAP diluted earnings per share of $0.44 [5][26] Business Developments - Expanded collaboration with NVIDIA to enhance the NVLink Fusion ecosystem, providing high-performance connectivity solutions for hyperscalers [5][6] - Partnership with Alchip Technologies to integrate custom ASIC development with Astera Labs' connectivity solutions for AI infrastructure [6] - Hosted a public webinar on Ultra Accelerator Link (UALink) technology, showcasing its market potential and Astera Labs' role in advancing open connectivity standards [5][6] Future Outlook - For Q3 2025, Astera Labs estimates revenue between $203 million and $210 million, with a GAAP gross margin of approximately 75% [9][33] - The company anticipates continued strong demand for its products, driven by the growth in AI and custom ASIC platforms [2][4]