Summary of Conference Call Notes Industry Overview - **Industry**: Greater China Technology Hardware - **Analysts**: Howard Kao, Sharon Shih, Irene Yen from Morgan Stanley Taiwan Limited Key Points 1. **Decline in Rack Shipments**: GB200 NVL72 rack shipments fell to approximately 2,000 units in July from about 2,500 units in June across major ODMs (Hon Hai, Quanta, and Wistron) [1][2] 2. **Reason for Decline**: The decline in shipments is attributed to a production shift at Wistron, moving compute tray production from Taiwan to Mexico. This is part of Wistron's capacity adjustment strategy to enhance production flexibility in response to potential unfavorable tariff announcements [2] 3. **Impact of Production Shift**: The transition to the Mexico plant is causing near-term production shortfalls. However, it is expected that once the transition is complete, production will increase, and the compute trays produced in Mexico will be compliant with USMCA regulations for the US market [2] 4. **Upcoming Earnings Call**: Quanta's 2Q25 earnings call is scheduled for August 12, 2025, at 3 PM HKT [3] Additional Insights - **Industry View**: The overall industry view remains in-line, indicating that the performance of the technology hardware sector is expected to align with broader market trends [4] - **Analyst Certification**: Analysts Howard Kao and Sharon Shih certify that their views on the companies discussed are accurately expressed and have not received compensation for specific recommendations [11] - **Investment Banking Relationships**: Morgan Stanley has investment banking relationships with several companies in the technology hardware sector, which may influence research objectivity [5][13][15] Important Disclosures - **Conflict of Interest**: Investors should be aware of potential conflicts of interest due to Morgan Stanley's business relationships with companies covered in the research [5][12] - **Stock Ratings**: The report includes stock ratings for various companies within the industry, with a distribution of ratings indicating a mix of Overweight, Equal-weight, and Underweight classifications [21][25] Conclusion The conference call highlighted a significant decline in rack shipments due to production shifts, with expectations for recovery post-transition. The industry outlook remains stable, and upcoming earnings calls will provide further insights into company performance. Investors should consider the potential conflicts of interest when interpreting the research findings.