Financial Data and Key Metrics Changes - The company reported revenues of $372 million for Q2 2025, representing a year-over-year increase of $21 million or 6% compared to Q2 2024, and a quarter-over-quarter increase of $14 million or 4% compared to Q1 2025 [15][18] - Net profit for Q2 2025 was $47 million, also $7 million higher quarter-over-quarter, resulting in earnings per share of $0.42 basic and $0.41 diluted [15][18] - Gross profit and operating profit for Q2 2025 were $80 million and $40 million respectively, each higher than the prior quarter by $7 million [15] Business Line Data and Key Metrics Changes - The RF Infrastructure business grew significantly, contributing over $90 million in revenues, which accounted for 25% of corporate revenues, up from 14% in the same period of 2024 [6][15] - The company has seen a fivefold increase in silicon photonics products moving from preproduction to production phase compared to the same period in 2024 [7] - RF SOI revenue increased over 20% from Q1 to Q2 2025 and is expected to grow close to 30% from Q2 to Q3 2025 [9] Market Data and Key Metrics Changes - The company is experiencing strong demand in the optical transceiver market, particularly for silicon germanium and silicon photonics technologies [5][6] - Utilization rates in various fabs were reported, with Fab two and Fab nine operating at about 60% utilization, while Fab three was fully utilized at 85% [12][13] Company Strategy and Development Direction - The company is repurposing multiple factories to increase capacity for RF infrastructure, specifically silicon germanium and silicon photonics [4][5] - Continued investment in capacity and R&D is planned throughout 2025, with further growth expected in 2026 [5][19] - The company aims to achieve $2.7 billion in annual revenue at full loading of existing fabs, targeting $560 million in operating profits and $500 million in net profit [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining the number one market share position in the optical transceiver market, with strong customer qualifications and demand [5][6] - The company anticipates strong sequential growth throughout the second half of 2025, with Q3 revenues expected to be around $395 million [4][5] - Management noted that the increase in silicon germanium and silicon photonics capacity will align with customer demand forecasts [85] Other Important Information - The company has a strong balance sheet with total assets of $3.2 billion and shareholders' equity reaching a record of $2.8 billion [18] - The company is engaged in various strategic partnerships and investments, including a $500 million allocation for fab equipment in Italy [19] Q&A Session Summary Question: What segments are expected to contribute to sequential growth in the second half of the year? - Management indicated that RF Infrastructure, particularly silicon germanium and silicon photonics, will be the primary contributors, with power management and RF SOI also expected to show strong growth [24][25] Question: Is the company fully booked through the end of the year? - Management confirmed that while there is room for immediate upsides, the focus remains on utilizing additional capacity for silicon germanium and silicon photonics [27][28] Question: Can you elaborate on the silicon photonics technology supporting receive functions? - Management explained that the new technology for the receive function could add approximately 20% to the served market and expects significant growth in silicon photonics shipments in Q4 2025 [38][39] Question: How is the improvement in RF mobile space characterized? - Management noted that the growth is attributed to inventory replenishment and share gains, with existing customers increasing their forecasts [42][62] Question: What is the outlook for operating expenses in 2025? - Management indicated that operating expenses are expected to trend flat to up on a year-over-year basis, maintaining a current run rate of about $40 million per quarter [78] Question: How is cash flow expected to trend with ongoing CapEx? - Management stated that cash from operations is expected to continue its positive trend, while CapEx levels are anticipated to remain stable [74][80]

Data Center Expansion - OpenAI and Oracle are undertaking a new 4.5 GW data center expansion [1] Industry Collaboration - CNBC's Kristina Partsinevelos discusses the collaboration between OpenAI and Oracle on 'Money Movers' [1]

Let's just start with the basic mechanics. There is an interesting equity investment going on here. Why why did you go down this route with the investor rather than just kind of a straight equity kind of deal.Good morning. Thanks for having me. It's a pleasure to be on your show.You know, Korea has grown at a phenomenal rate over the last six years, as I mentioned. And we have three of the world's largest investors, Warburg Pincus, Ontario Teachers pension Plan and Mubadala. And we are at a juncture where w ...

Core Industry Insights - The electronics manufacturing services (EMS) industry is highly competitive and rapidly evolving, driven by factors such as AI, data center expansion, consumer electronics growth, 5G adoption, IoT proliferation, and automotive innovation [4] - Both Celestica Inc. and Jabil Inc. are strategically positioned in this evolving EMS landscape, with domain-specific expertise in core areas [4] Jabil Inc. Highlights - Jabil is experiencing significant growth in AI-related revenues, projected to reach $8.5 billion by 2025, reflecting a 50% year-over-year growth [5] - The AI data center market is expected to grow from $15.02 billion in 2024 to $93.60 billion in 2032, with a compound annual growth rate of 26.8% [6] - Jabil plans to invest $500 million in the Southeast U.S. to expand manufacturing capabilities and workforce development for the cloud and AI data center infrastructure market [6] - The company generated $326 million in adjusted free cash flow in Q3 and anticipates over $1.2 billion in adjusted free cash flow for the full year 2025, indicating efficient working capital management [7] - Jabil faces challenges from weak demand in renewable energy and EV verticals, as well as competition from Celestica and others [8] Celestica Inc. Highlights - Celestica is witnessing growth in its Connectivity & Cloud Solutions (CCS) segment, driven by strong demand for 400G and 800G switches [9][10] - The company is focusing on product diversification and innovation, with strategic collaborations with industry leaders like AMD and Broadcom expected to yield long-term benefits [10] - Celestica's strong R&D capabilities allow it to produce high-volume electronic products and complex technology infrastructure products [11] - The introduction of innovative products, such as the ES1500 enterprise access switch, positions Celestica for long-term growth [12] - However, the company faces margin pressures due to intensifying competition and significant customer concentration risk [13] Financial Performance and Valuation - Jabil's 2025 sales are estimated to grow by 0.58%, with EPS growth of 10.13%, while Celestica's sales and EPS are expected to grow by 13.15% and 30.15%, respectively [14][16] - Over the past year, Celestica's stock has gained 152.6%, while Jabil's has increased by 85.2% [17] - Jabil's shares trade at a forward P/E ratio of 20.42, which is lower than Celestica's 28.98, making Jabil more attractive from a valuation standpoint [17] Investment Outlook - Jabil holds a Zacks Rank 1 (Strong Buy), while Celestica has a Zacks Rank 3 (Hold), indicating a stronger investment outlook for Jabil [19][21] - Both companies are expected to benefit from the growing AI proliferation across industries, but Jabil's broader portfolio, robust cash flow, and strategic investments provide it with a competitive edge [21]

Company Expansion - CoreWeave is expanding a data center near Dallas [1] Energy & Infrastructure - Expansion places new demands on the US power grid [1] - Expansion raises concerns about reliability of the US power grid [1]

Financial Data and Key Metrics Changes - Total net revenues increased by 18.3% year over year to RMB 2.25 billion for Q1 2025, driven by strong growth in the wholesale business [10][19] - Adjusted EBITDA rose by 26.4% year over year to RMB 682 million, with an adjusted EBITDA margin of 30.4%, up 1.9 percentage points year over year [10][21] - Wholesale revenues reached a record high of RMB 673 million for the quarter, representing a year-over-year growth rate of 86.5% [10][19] - Adjusted cash gross profit increased by 26.4% to RMB 967.8 million, with adjusted cash gross margins improving to 43.1% from 40.3% in the same period last year [20][21] Business Line Data and Key Metrics Changes - Wholesale IDC business capacity in service grew 18.1% quarter over quarter to 573 megawatts, with a utilization rate of 76.2% [9][13] - Retail capacity in service was 51,960 cabinets, with a slight increase in utilization rate to 63.7% [14] - Retail revenues increased by 4.8% to RMB 968.3 million, while the monthly recurring revenue (MRR) per retail cabinet rose to RMB 8,898 [14][20] Market Data and Key Metrics Changes - The demand for premium IDC services surged due to the explosive growth of AI applications, with retail IDC business revenues from customer private deployments of open-source large language models increasing by 309% in March compared to January [12] - The company secured new orders across various sectors, including a 55 megawatt order from a leading cloud computing customer and a 64 megawatt order from an internet customer [11] Company Strategy and Development Direction - The company is focused on leveraging its high-performance data center network and reliable solutions to meet growing customer demand, driving growth in China's digital economy [16][27] - The company plans to maintain a robust expansion plan to prepare for further business growth, particularly in the wholesale IDC sector [13][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the China market, driven by the increasing maturity of open-source model technology and the expansion of intelligent application scenarios [12][27] - The company reiterated its full-year guidance for 2025, expecting total net revenues between RMB 9.1 billion to RMB 9.3 billion, representing year-over-year growth of 10% to 13% [24] Other Important Information - The company issued $430 million of convertible senior notes at an interest rate of 2.5% per annum and secured a sustainability-linked loan of RMB 500 million at a 3.7% interest rate [10][21] - The company achieved significant progress in its ESG initiatives, including a fivefold increase in energy usage from renewable sources [26] Q&A Session Summary Question: Update on customer demand after the H20 chip ban - Management noted a short-term impact on demand from hyperscalers due to the H20 chip embargo, but clients quickly adjusted, and current orders are sufficient to fill capacities for this year and the first half of next year [29][31] Question: Retail demand and MRR increase drivers - Most new retail contracts are driven by AI applications, and the increase in MRR is attributed to repurposing cabinets for high-voltage needs, allowing for higher pricing [36][38] Question: Gross profit margin improvement drivers - The improvement in gross profit margin is due to a higher proportion of wholesale IDC services and the repurposing of cabinets for higher-margin retail services [40][42] Question: Plans for a Hong Kong IPO and electricity costs - The company is exploring a potential dual listing in Hong Kong but has no specific timeline yet; utility bills remain stable with no expected decline [49][51] Question: Utilization rate outlook - Management is confident in a positive utilization ramp-up for the next three to four quarters due to strong client demand and effective delivery plans [53][55]

Financial Data and Key Metrics Changes - The company reported a record net profit after tax (NPAT) of $18.9 million for Q2 FY 2025, with adjusted EBITDA increasing by $60 million to $62.6 million [5][41] - Bitcoin mining revenue reached $113.5 million, with operating cash flows of $53.7 million [41] - The average operating hash rate increased from 12.2 exahash to 22.6 exahash [41] - Net electricity costs remained flat at $28.9 million, with the average net electricity cost per Bitcoin mined decreasing from $35.4k to $21.4k [42] Business Line Data and Key Metrics Changes - The company is expanding its Bitcoin mining capacity from 31 exahash to a target of 50 exahash by mid-2025, with a revised target of 52 exahash due to the allocation of resources to the HorizonOne project [6][13][26] - The new HorizonOne project will be a 75 megawatt liquid cooled AI data center, expected to support a 50 megawatt IT load [7][15] - The Sweetwater 2 project is in late-stage development, aiming for a 600 megawatt capacity, which will create a two gigawatt data center hub alongside Sweetwater 1 [10][20] Market Data and Key Metrics Changes - The company noted a significant power scarcity in the U.S. data center market, with a projected 36 gigawatt shortage in data center capacity [30] - There is increasing demand from hyperscalers for large-scale data center campuses, with many expressing interest in one gigawatt plus capacities [52] Company Strategy and Development Direction - The company is focusing on capitalizing on the growing demand for liquid cooled data center capacity, particularly in light of the upcoming NVIDIA Blackwell GPUs [9][17] - The strategic focus includes leveraging existing infrastructure for both Bitcoin mining and AI cloud services, with a clear path for future growth in these areas [32][34] - The company aims to maintain long-term ownership of its sites while exploring various partnership opportunities for financing and development [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for AI and cloud services, noting an uptick in interest following recent market developments [28][29] - The management team acknowledged the challenges in securing grid connections but remains optimistic about the potential for future projects [60] - The company is committed to optimizing its capital structure and exploring alternative funding options to support growth initiatives [14] Other Important Information - The company has secured over 500 acres of land for the Sweetwater 2 project and is finalizing a grid connection agreement [10][20] - The balance sheet remains robust, with total assets increasing to approximately $1.9 billion [43][44] Q&A Session Summary Question: Update on HorizonOne project and CapEx - Management confirmed that they are utilizing existing data center architecture to deliver liquid cooled capacity at effective costs, with long lead items already ordered [47][48] Question: Demand for Sweetwater 2 and market interest - Management indicated that the demand for large data center capacities is realistic and that they are in active discussions with multiple hyperscalers [51][52] Question: Challenges in securing grid connections - Management highlighted the increasing difficulty in getting projects approved and the long timelines involved in the process [59][60] Question: Concerns about HPC monetization of Sweetwater 1 - Management addressed investor concerns, stating that the suitability of West Texas for AI applications is no longer in question and that they have been purposefully building data centers for multi-tenancy [86][88] Question: Financing options for remaining capacity at Childress - Management confirmed that they are exploring multiple financing avenues, including project debt financing once customer contracts are secured [95][96]