8 December 2025 Price Target Change Global Memory Global Memory: Any upside left after the recent rally? Mark Li +852 2123 2645 mark.li@bernsteinsg.com Edward Hou, CFA +852 2123 2623 Structural thesis is intact, but be mindful of short-term volatility. Memory stocks have high betas & valuation is susceptible of macro risk appetite & AI bubble concern. Our recent study reinforces our conviction that memory is the cornerstone of data economy, but investors still need to tread these stocks carefully. See the D ...

Core Insights - The Global Data Ecosystem Conference in Shanghai showcased innovations in data flow and digital technology, emphasizing their role in transforming data-driven ideas into practical business solutions [1] Group 1: Conference Highlights - The main forum featured announcements regarding the mutual recognition of digital identities and electronic documents between Shanghai and Singapore, along with the launch of an online registration service for foreign-invested enterprises in Shanghai targeting Singaporean investors [2] - A white paper was released by the conference organizers, focusing on building and operating a reliable data infrastructure [3] - The conference introduced a suite of platforms aimed at supporting business transformation, featuring a "2+365" full-cycle service model that connects service providers with market demand and integrates technological innovations with industrial applications [4] Group 2: Exhibitions and Achievements - Notable exhibitions included the winners of the national data application innovation competition "Data Elements X," a display by the National Data Group Alliance, and an exhibit showcasing Shanghai's data economy achievements, all aimed at translating data innovations into real-world applications [5] - The conference has been an annual event in Shanghai since 2021, attracting top digital technology talents, businesses, and research institutions globally [5] Group 3: Purpose and Impact - The event serves as a platform for communication and collaborative innovation within the digital ecosystem, supporting the development of the global data economy [6]

Core Insights - Shenzhen is accelerating the application of data as a pioneer city in artificial intelligence, highlighted by the recent award ceremony of the third Guangdong-Hong Kong-Macao Greater Bay Area Data Application Innovation Competition [1][3] - The competition attracted nearly 400 teams and over 1,500 participants, showcasing the international influence of the Greater Bay Area [3] - Shenzhen aims to have over 3,000 AI companies and an annual growth rate of over 20% in the AI industry by 2026, with a projected industry scale exceeding 360 billion yuan in 2024 [3][4] Group 1: Competition Overview - The third competition, themed "Data Creates the Future, Intelligence Leads the World," featured a model of "industry posing questions, society providing answers" [3] - A total of 21 teams advanced to the final evaluation in the technical competition, with 6 teams winning awards, while 180 teams progressed in the creative competition [4] - Notable winners included teams from Zhejiang University, Shenzhen Skyworth Technology Co., and others, with projects spanning aerospace, communication technology, smart healthcare, and digital film [4] Group 2: Industry Development - Shenzhen has opened nearly 200 major application scenarios to promote AI integration into various sectors, including smart healthcare and industrial interconnectivity [3] - The city is positioned as a core engine for technological innovation in the Greater Bay Area, with a comprehensive ecosystem covering chips, models, and applications [3][4] Group 3: Data Economy Insights - Experts highlighted the importance of data and AI integration as a core driver for high-quality development and new productivity [6] - Challenges in the data economy include reliance on public internet data and the "data wall" bottleneck, which restricts user access to data value chains [6] - The concept of Open Data Labs was proposed to enable users to own, control, and benefit from their data [6] Group 4: Cross-Border Data Flow - The "White Paper on Compliance and Technical Applications of Cross-Border Data Flow (2025)" was released, emphasizing the significance of cross-border data flow in enhancing international cooperation [8] - The white paper predicts the evolution of global data cross-border rules and offers policy support suggestions for building a secure and efficient cross-border data ecosystem [8] - The Greater Bay Area Data Application Innovation Competition aims to deepen resource sharing and connect the region with global innovation [8]

Financial Data and Key Metrics Changes - The company reported third-quarter GAAP earnings of $2.97 per share and adjusted operating earnings of $3.04 per share, which is an increase of $0.30 per share compared to the same period last year [6][19]. - The company experienced fewer nuclear outage days, both planned and unplanned, compared to the same period last year, contributing to higher generation volumes and lower O&M expenses [19][20]. Business Line Data and Key Metrics Changes - The nuclear fleet achieved a capacity factor of 96.8%, which is approximately 4% higher than the industry average, equating to the output of an additional reactor on a full-year basis [22]. - The renewable and natural gas fleets performed near plan, with renewable energy capture at 96.8% and power dispatch match at 95.5% [22]. Market Data and Key Metrics Changes - The company noted a strong performance in capacity revenues following the 2025-2026 capacity auction, with non-CMC units capturing almost all benefits from higher capacity prices [20]. - ZEC prices in both the Midwest and New York were lower compared to the third quarter of last year, impacting overall revenue [21]. Company Strategy and Development Direction - The company is focused on closing the Calpine transaction and integrating the two companies to enhance value for customers and shareholders [30]. - There is a strong public support for nuclear energy, with nearly three-quarters of the public supporting it and nine out of ten believing in extending licenses for existing plants [11][12]. - The company is exploring energy options for Maryland and the region, including a commitment to bring 835 megawatts through the restart of the Crane Clean Energy Center [16][17]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to complete transactions in the data economy market, noting that customer sophistication has increased significantly [8][9]. - The company is optimistic about the future of nuclear energy, citing bipartisan support and recent government initiatives aimed at expanding nuclear capabilities [12][14]. - Management highlighted the importance of practical reforms to facilitate the interconnection of large loads to the grid, which is crucial for maintaining leadership in artificial intelligence [9]. Other Important Information - The company has reached a landmark agreement with the state of Maryland regarding the continued operation of the Conowingo Dam for the next 50 years [10]. - The company has executed a renewal and upsizing of its credit facilities, positioning itself for the close of the Calpine transaction with $14 billion of liquidity post-deal [27][28]. Q&A Session Summary Question: Confidence in announcing another hyperscale deal by year-end - Management is focused exclusively on front-of-the-meter deals and expects to complete transactions soon, potentially before the fourth quarter call [36][38]. Question: Potential delay in the Calpine asset sale process - Management feels confident about the timeline for divestiture and is not in a hurry to complete asset sales, as the market is supportive [49][51]. Question: Thoughts on power market dynamics and new entrants - Management sees significant growth in data center investments and believes the interest in new generation reflects a durable growth cycle [53][54]. Question: Update on Three Mile Island progress - Progress is going well, with critical items completed and no new challenges emerging [60][61]. Question: Impact of rising energy prices on contracts - Rising energy prices are favorable for the company, enhancing the environment for asset sales and contract negotiations [62][64]. Question: Specifics on natural gas capacity in Maryland - The company plans to relocate lightly used assets from the Midwest and New England to Maryland, which are state-of-the-art in terms of performance [72]. Question: Comfort level with new nuclear construction - Management remains cautious about new nuclear construction, emphasizing the need for durable PPAs and clear pricing before committing capital [73][76]. Question: Demand response initiatives and customer willingness - The company is seeing strong interest from industrial customers in demand response programs, with innovative product structures being developed [86][88]. Question: Retail margins in PJM - Retail margins are on the upper end of historical ranges, with stronger margins observed in sustainability-related products [90]. Question: Concerns about the ability to sign contracts for generation assets - Management is confident in executing transactions and believes that the demand response product offering anticipates market needs [96][98]. Question: Portfolio of generating assets for long-term PPAs - Management sees room for long-term deals and is focused on executing contracts to meet growing demand [105][106].

Financial Data and Key Metrics Changes - The company reported third quarter GAAP earnings of $2.97 per share and adjusted operating earnings of $3.04 per share, which is an increase of $0.30 per share compared to the same period last year [6][19]. - The company experienced fewer nuclear outage days, both planned and unplanned, compared to the same period last year, contributing to higher generation volumes and lower O&M expenses [20][22]. Business Line Data and Key Metrics Changes - The nuclear fleet achieved a capacity factor of 96.8%, which is approximately 4% higher than the industry average, equating to the output of an additional reactor on a full-year basis [22]. - The renewable and natural gas fleets performed near plan, with renewable energy capture at 96.8% and power dispatch match at 95.5% [22]. Market Data and Key Metrics Changes - The company noted a strong performance in the commercial and generation businesses, with sales margins above long-term averages and renewal rates for both power and gas remaining strong [23][24]. - The company is seeing a significant increase in interest from customers in the data economy, indicating a robust market environment [8][54]. Company Strategy and Development Direction - The company is focused on closing the Calpine transaction and integrating the two companies to enhance value for customers and shareholders [30]. - The company is actively pursuing opportunities in the data economy and is confident in its ability to execute transactions that will meet the growing demand for clean energy [31][54]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of the nuclear sector, supported by public and governmental backing for nuclear energy [12][15]. - The company is optimistic about the future, citing strong cash flow and a solid earnings growth profile, particularly through strategic transactions and partnerships in the data economy [31][32]. Other Important Information - The company reached a landmark agreement with the state of Maryland for the continued operation of Conowingo Dam for the next 50 years, which is seen as a win-win outcome for clean energy in the region [10]. - The company has executed a renewal and upsizing of its credit facilities, positioning itself for the close of the Calpine transaction with $14 billion of liquidity post-deal [27][28]. Q&A Session Summary Question: Update on hyperscaler deals - Management is focused on front-of-the-meter deals and expects to complete transactions soon, potentially before the next quarterly call [36][39]. Question: Calpine asset sale process - Management is confident about the timeline for asset sales and is not in a hurry, as the market is supportive of asset sales [49][51]. Question: Demand response initiatives - The company is seeing strong interest from industrial customers in demand response programs and is working on innovative product structures to attract long-term commitments [88][90]. Question: Retail margins in PJM - Retail margins are on the upper end of historical ranges, with stronger margins observed in sustainability-related products [93]. Question: New nuclear construction - Management remains cautious about new nuclear construction, emphasizing the need for durable PPAs and clear pricing before committing significant capital [73][75].

Financial Data and Key Metrics Changes - Constellation Energy reported third-quarter GAAP earnings of $2.97 per share and adjusted operating earnings of $3.04 per share, an increase of $0.30 per share compared to the same period last year [5][17][22] - The company experienced fewer nuclear outage days, both planned and unplanned, contributing to higher generation volumes and lower O&M expenses year-over-year [18][19] - The stock has appreciated over 50% year-to-date, benefiting shareholders but creating O&M headwinds from stock compensation plans [22][26] Business Line Data and Key Metrics Changes - The nuclear fleet achieved a capacity factor of 96.8%, consistently outperforming the industry average by about 4% [19] - Renewable energy capture was at 96.8%, and power dispatch matched at 95.5% during the quarter [19] - The commercial team reported strong performance with sales margins above long-term averages, although a decline in CNI gas renewal rates was noted due to the loss of a large low-margin customer [20][21] Market Data and Key Metrics Changes - The market for nuclear energy is experiencing increased public support, with nearly three-quarters of the public favoring nuclear energy and nine out of ten supporting the extension of licenses for existing plants [10][11] - The company is seeing a significant increase in interest from sophisticated customers in the data economy, indicating a shift in buyer maturity [6][7] Company Strategy and Development Direction - Constellation is focused on closing the Calpine transaction and integrating the two companies to enhance value for customers and shareholders [27] - The company is actively pursuing opportunities in the data economy and is committed to providing clean, reliable energy solutions [28] - The strategic emphasis is on maintaining a strong balance sheet, delivering annual dividend growth, and pursuing growth opportunities that meet a double-digit unlevered return threshold [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute transactions in the data economy and highlighted the importance of practical reforms for connecting large loads to the grid [8][10] - The company remains cautious yet optimistic about new nuclear construction, emphasizing the need for durable PPAs and clear pricing [46][47] - The overall power demand is expected to grow, and Constellation's existing fleet is well-positioned to meet future energy needs [28] Other Important Information - A landmark agreement was reached with the state of Maryland for the continued operation of Conowingo Dam for the next 50 years, ensuring a vital source of clean energy [9] - The company is exploring energy options for Maryland and the region, including the potential for new dispatchable generation resources [15] Q&A Session Summary Question: Update on hyperscaler deals - Management is focused on front-of-the-meter deals and expects to complete transactions soon, potentially before the next quarterly call [30] Question: Concerns about Calpine asset sale delays - Management is confident about the timeline for asset sales and is not in a hurry, ensuring the right assets are targeted for divestiture [36] Question: Insights on power market dynamics - Management noted that energy prices are rising, which is favorable for asset sales and contract negotiations [41][42] Question: Demand response initiatives - The company is seeing strong interest from industrial customers in demand response programs, aiming to provide innovative solutions [52][53] Question: Retail margins in PJM - Retail margins remain strong, with some competitive pressures noted, but overall margins are above historical averages [55]

Data Economy & Accountability - The data economy is experiencing rapid growth [1] - There is a significant lack of accountability within the data economy [1] Bitcoin L2s Potential - Bitcoin L2s could potentially shift control, privacy, and power back to users [1] - This shift aims to counter systems designed to take these elements away [1] Partnership & Focus - The content is presented as partner content, indicating a collaboration [1] - The discussion focuses on the intersection of privacy, control, and Bitcoin L2 technology [1]

Core Insights - Reklaim Ltd. has achieved two consecutive years of profitability, reporting a 73% year-over-year revenue growth in Q1 2025 and an 18% growth in Q2 2025, indicating strong execution and momentum in the consumer data privacy sector [3]. Company Performance - The company will be presenting at the Annual Smallcap Discoveries Conference on September 29, 2025, where CEO Neil Sweeney will discuss Reklaim's recent performance and the growth of its core platforms: Protect and Rewards [2][3]. - Reklaim is one of the few profitable companies in the small-cap market, showcasing the sustainability of its business model [3]. Business Model and Strategy - Reklaim empowers consumers to control their personal information through its mobile app, allowing them to view, protect, and monetize their data [6]. - The company licenses high-quality, permissioned data to brands, providing a privacy-compliant alternative to third-party tracking, thus aligning consumer and shareholder interests [6]. Conference Details - The Annual Smallcap Discoveries Conference aims to strengthen Canada's microcap ecosystem by fostering connections and improving access to capital for innovative businesses [4].

Financial Data and Key Metrics Changes - The company reported GAAP earnings of $0.38 per share and adjusted operating earnings of $2.14 per share for the first quarter, which is $0.32 per share higher than the previous year [7][48]. - The company reaffirmed its full-year operating EPS guidance range of $8.9 to $9.6 per share [49]. Business Line Data and Key Metrics Changes - Nuclear performance was strong, producing over 41 million megawatt hours with a capacity factor of 94.1% [51]. - The renewables and natural gas fleet achieved a 96.2% renewable energy capture and a 99.2% power dispatch match [51]. Market Data and Key Metrics Changes - The company noted that the cost of new entry for combined cycle machines and solar with storage has increased significantly, with estimates for new build CCGTs exceeding $2,000 per KW [31][32]. - The company highlighted that the demand from data centers is expected to rise, driven by the importance of AI technology and the U.S. government's focus on winning the AI race [21][22]. Company Strategy and Development Direction - The company is focused on leveraging its nuclear energy assets to meet the growing demand for clean and reliable energy, emphasizing the strategic advantage of its existing fleet [9][35]. - The acquisition of Calpine is seen as a significant opportunity, with the company believing it was worth twice what was paid due to the rising costs of new generation assets [17][19]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable market environment and the ability to meet demand through existing assets, despite some skepticism about overstated demand forecasts [8][24]. - The company is optimistic about the integration of Calpine and the potential for enhanced capabilities and customer service [44][60]. Other Important Information - The company has about $1 billion left in its buyback authorization and plans to resume its buyback program when market conditions allow [20]. - The company is actively working on regulatory processes and has made all required filings for the Calpine transaction, expecting to close by the end of the year [45][46]. Q&A Session Summary Question: Can you provide more details on the progress towards long-term customer agreements? - Management indicated that while policy clarity would be beneficial, customers are adapting and seeking on-grid solutions due to delays in regulatory clarity [67][71]. Question: What is the expected path and timing to resolve the FERC proceeding? - Management believes there is sufficient information for FERC to provide clarity and expects a resolution within a few months [72][75]. Question: Is the pricing seen an indicator of future pricing? - Management stated that while they cannot disclose specific pricing details due to competitive sensitivities, they believe their pricing should align with market levels [80][84]. Question: How does the company view the behind-the-meter opportunity? - Management noted that while there is still interest in behind-the-meter solutions, current discussions are primarily focused on front-of-the-meter connections due to regulatory uncertainties [96][100].

Financial Data and Key Metrics Changes - Constellation Energy reported GAAP earnings of $0.38 per share and adjusted operating earnings of $2.14 per share for Q1 2025, which is $0.32 per share higher than the previous year [8][47] - The company reaffirmed its full-year operating EPS guidance range of $8.9 to $9.6 per share [48] Business Line Data and Key Metrics Changes - Nuclear performance was strong, producing over 41 million megawatt hours with a capacity factor of 94.1%, and completed three refueling outages averaging 24 days compared to the industry average of nearly 40 days [50] - The renewables and natural gas fleet achieved a 96.2% renewable energy capture and 99.2% power dispatch match [50] Market Data and Key Metrics Changes - The company locked in margins that exceed its ten-year average, supporting 2025 and benefiting future backlog [48] - The Illinois ZEC and CMC programs saw higher prices compared to Q1 2024, partially offset by lower nuclear PTCs recognized during the quarter [48] Company Strategy and Development Direction - Constellation Energy is focused on leveraging its nuclear assets to meet the growing demand for clean and reliable energy, particularly in the context of the data economy and AI technology [9][10] - The acquisition of Calpine is viewed as a strategic advantage, with the potential to create new capabilities for customers across America [17][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable market environment and the importance of nuclear energy in meeting future demand [9][10] - The company is optimistic about the integration of Calpine and the potential for significant free cash flow and earnings growth from the acquisition [60][62] Other Important Information - The company highlighted the importance of regulatory clarity from FERC to facilitate the development of behind-the-meter and front-of-the-meter energy solutions [16][72] - Constellation Energy is well-positioned to manage potential recessionary impacts due to its investment-grade balance sheet and the protective nature of the Nuclear PTC [55][56] Q&A Session Summary Question: Can you provide more details on the progress towards long-term customer agreements? - Management indicated that while policy clarity would be beneficial, customers are adapting and seeking on-grid solutions due to delays in regulatory processes [66][70] Question: What is the expected path and timing to resolve the FERC proceeding? - Management believes there is sufficient information for FERC to provide clarity and expects a resolution within a few months [72][75] Question: Is there a diminishing interest in behind-the-meter opportunities? - Management noted that while there is still interest in behind-the-meter solutions, current discussions are primarily focused on front-of-the-meter connections due to regulatory uncertainty [94][96]