11 November 2025 | 5:39PM HKT Equity Research CHINA DATA CENTERS 3Q25 results likely inline; Positive order visibility and domestic financing environment to support growth; Buy VNET/GDS We preview 3Q25 results for China data center operators GDS/VNET (both Buy rated) and update estimates post Sinnet (Sell)'s below-expected 3Q25 results. For 3Q25E, we are largely inline with Visible Alpha Consensus Data (GSe GDS China revenue +11% yoy/EBITDA +10% yoy, VNET revenue +17% yoy/EBITDA +28% yoy). For 2025 full-yea ...

Group 1 - SoftBank Group sold its entire stake in Nvidia for $5.83 billion to fund a $22.5 billion investment in OpenAI [1][2] - The sale of 32.1 million Nvidia shares occurred in October, alongside a reduction in SoftBank's T-Mobile position, raising an additional $9.17 billion [2] - SoftBank's CFO emphasized the importance of providing investment opportunities while maintaining financial strength [2] Group 2 - SoftBank's Vision Fund was an early investor in Nvidia, building a $4 billion stake in 2017 before fully divesting in January 2019 [3] - Despite the sale, SoftBank remains connected to Nvidia through broader business interests [3] - Analysts view SoftBank's actions as a bullish signal for its investment strategy rather than a bearish one [3] Group 3 - OpenAI is a central focus of SoftBank's GenAI portfolio, while hardware investments continue through its stake in Arm Holdings [4] - SoftBank has a controlling stake in Arm, which designs chips for mobile and AI processors [4] Group 4 - Other tech stocks in the region, including Advantest and Tokyo Electron, experienced declines following SoftBank's announcement [5] - TSMC, the largest contract chipmaker, and SK Hynix also saw minor decreases in their stock prices [5]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $1.15 billion, up 2.8% year-over-year in pro forma constant currency, exceeding the midpoint of guidance [6][24] - Non-GAAP diluted earnings per share (EPS) was $1.83, slightly above guidance midpoint, with a 12-month backlog of $4.19 billion, up 3.2% from a year ago [7][32] - Profitability improved by 300 basis points year-over-year, with a non-GAAP operating margin of 21.6%, up 290 basis points from the previous year [25][26] Business Line Data and Key Metrics Changes - Cloud revenue grew by double digits, contributing over 30% of total revenue, compared to roughly 25% in the prior year [26] - Managed services revenue reached a record $3 billion in fiscal 2025, up 3.1% from a year ago, with managed services accounting for 66% of overall revenue [27][28] Market Data and Key Metrics Changes - North America saw over 2% sequential improvement, marking its strongest quarter of the fiscal year, while Europe experienced a decline following a record quarter [24] - The rest of the world showed mixed trends, with expectations for continued growth despite fluctuations due to project orientation [24] Company Strategy and Development Direction - The company is focusing on cloud, digital, and generative AI solutions to support telco customers, with a strategy to enhance customer experiences and operational efficiencies [9][10] - A significant investment in generative AI is planned, with the development of a next-generation platform called Cognitive Core, aimed at transforming telecom operations [19][20] Management's Comments on Operating Environment and Future Outlook - The company is entering fiscal 2026 with a healthy backlog and strong visibility, expecting revenue growth between 1.7%-5.7% as reported [21][22] - Management acknowledged potential impacts from the uncertain global macroeconomic environment on customer demand and spending behavior [22] Other Important Information - Free cash flow for fiscal 2025 was $645 million, with a healthy cash balance of approximately $325 million and a $500 million revolving credit facility [30][31] - The company plans to return the majority of free cash flow to shareholders, including an 8% increase in quarterly cash dividends [31] Q&A Session Summary Question: Impact of AI on the telecom industry - Management discussed the gradual improvement in productivity through generative AI, emphasizing its potential to enhance operations and customer offerings [37][38] Question: R&D capital allocation - The decision to reallocate capital into R&D was driven by the need to capture growth opportunities, with ongoing productivity gains expected to support this investment [40][41] Question: Customer pricing expectations - There is ongoing dialogue with customers regarding pricing, with efforts to expand the scope of agreements to include new technologies and services [44][46] Question: Cash flow and growth expectations - Management clarified that cash flow levels are consistent, with expectations for stronger growth in the second half of fiscal 2026, despite some pressures from major customers like T-Mobile [48][49] Question: Long-term growth positioning - The company aims to establish multiple growth engines, including cloud and generative AI, to drive sustainable growth beyond current levels [56][57]

Amdocs Limited NASDAQ: DOX Fiscal Q4 2025 Earnings Presentation November 11, 2025 Shuky Sheffer President & CEO Tamar Rapaport-Dagim CFO & COO Disclaimer The information contained herein in this presentation or delivered or to be delivered to you during this presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in Amdocs Limited securities or in any securities of its affiliates or subsidiaries. This presentation and the comments made by members of Amdocs ...

Core Viewpoint - The discussion highlights Apple's relatively lower spending on AI compared to other tech giants, despite an increase in operating expenditures, particularly in research and development related to artificial intelligence. Group 1: Apple's Spending and Strategy - Apple has increased its operating expenditures by 11% year-over-year for the September quarter, with expectations to jump to 20% in the December quarter, primarily for AI initiatives [3][4]. - The company is building its own servers and utilizing its existing chips, which cost hundreds of dollars each, rather than spending significantly on NVIDIA chips [5][4]. - Apple's strategy appears to rely on partnerships, such as with Google's Gemini, rather than developing AI technology internally, raising concerns about its long-term AI strategy [7][10]. Group 2: Comparison with Other Tech Companies - Other tech companies, like Microsoft, are aggressively pursuing AI advancements and have more extensive investments in AI technology, which may position them better in the long run [8][12]. - Microsoft has recently freed itself from restrictions with OpenAI, allowing it to pursue more ambitious AI goals, contrasting with Apple's more cautious approach [8]. Group 3: Financial Position and R&D - Apple holds a strong financial position with approximately $200 billion in cash, allowing it to increase R&D spending without immediate financial strain [9][13]. - The company's margins are expanding due to the strength of its services business, enabling higher operating expenditures and R&D investments [13]. Group 4: Industry Concerns and Debt - There are concerns about the high levels of debt being taken on by tech companies in pursuit of AI technology, which could pose risks if these investments do not yield expected returns [15][16]. - The industry is experiencing extreme financial movements as companies chase advancements in AI, leading to questions about the sustainability of such spending [16][17].

Expanded seven-year managed services collaboration will drive agility, enhance customer experience, and simplify IT operations JERSEY CITY, NJ / ACCESS Newswire / November 11, 2025 / Amdocs (NASDAQ:DOX), a leading provider of software and services to communications and media companies, today announced a seven-year extension of its managed services agreement with PLDT Inc. (PLDT) and its wireless subsidiary Smart Communications, Inc. (Smart). The expanded collaboration reinforces Amdocs' long-standing partne ...

What's being cheered here. You know, sometimes cutting your way to profit and cutting your way into a good financial position is not the most exciting story. What is the Laura martin main takeaway.Well, the latter, Martin Main takeaway was I thought they left more questions unanswered than they answered. So I think one of the big questions is they just did an affiliated transaction with Oracle, which for Enterprise Software, which is the dad's company. So now you can with through pricing, move money between ...

Core Insights - The article discusses the financial strategies and future plans of a company, highlighting concerns about their recent decisions and the implications for shareholders [1][2][3]. Financial Strategy - The company plans to invest $1,000,005 in content and increase its film production from seven to fifteen films annually starting in 2026, raising concerns about the financial burden this will place on shareholders [3][4]. - The timeline for movie releases is approximately three years, indicating a significant investment period before any potential returns are realized [4]. Affiliated Transactions - An affiliated transaction with Oracle has raised questions about the nature of the relationship and the potential for financial maneuvering between the two companies [2][4][5]. - There is uncertainty regarding the value of the assets being acquired, whether they are focused on entertainment or infrastructure, which complicates the investment narrative [5][8]. Market Position and Competition - The company is positioned in a competitive landscape, with comparisons made to larger players like Warner Brothers, which could influence its strategic decisions and market valuation [8]. - The potential for a significant acquisition, such as Warner Brothers, is discussed, suggesting that the company may be justifying its current expenditures in light of future growth opportunities [8]. Technology and Innovation - The integration of storytelling with technology is emphasized as a strategic direction, although it is noted that this approach may be costly in the short term [6][5]. - The article also touches on the broader industry trend of hyperscalers investing in infrastructure, with generative AI playing a key role in enhancing revenue growth and operational efficiency [10][11].

So, are the fears overblown. Well, let's ask one of the key players in the quantum space. Joining me now is Nicolo Deamasi, chairman and CEO of quantum computing company ION Q.Nicolo, it's great to have you on. Welcome. >> Always a pleasure.>> So, let's start right there because when you get into the trenches of generative AI, at some point quantum will enter the equation equation in a meaningful way. So, are the fears overblown. >> Well, we've had a spectacular quarter.Um, INQ has delivered a 37% revenue b ...

Welcome to this Infinia demo. Today we'll be showing how Infinia can handle all the IO needs in an AI data pipeline. The Infinia architecture can be broken down into sections.Storage services providing enhanced resilience and elastic scale capabilities of the storage itself. The data plane comprised of a key value store as well as the presentation of data to clients via IO protocols. SQL queries of the KV store data and metadata and an SDK to integrate directly with applications and frameworks.And finally, ...