Summary of Key Points from the Conference Call Industry Overview - **Industry**: Electronic Components in Japan - **Investor Engagement**: 29 individual meetings and one group meeting held with institutional investors in Singapore and Hong Kong from September 29 to October 3, focusing on stock selection and trends from July to September, as well as medium-term earnings projections for fiscal year ending March 2027 [1][2] Core Insights - **Investment Themes**: There is a growing emphasis on selecting stocks related to AI, data centers, and other specific themes rather than focusing solely on earnings. Strong interest was noted in several companies: - **Ibiden**: High market share in NVIDIA's GPU ABF package substrates - **Murata Manufacturing and Taiyo Yuden**: Increasing sales in the AI/data center segment within their main MLCC businesses - **TDK**: Ongoing expansion in rechargeable battery earnings and improvements in HDD-related business - **Meiko Electronics**: Geopolitical advantage due to primary production site in Vietnam [3] Company-Specific Highlights Ibiden - **Sales Growth**: Reported ¥75.1 billion in sales from NVIDIA in fiscal year 2025, a 138% year-over-year increase. Expected sales to rise to ¥130.0 billion in fiscal year 2026 and ¥192.7 billion in fiscal year 2027. - **New Product Launch**: Anticipated shipments of Rubin ABF package substrates starting March 2026, expected to significantly boost earnings. - **Operational Performance**: Projected operating profit of ¥12.0 billion for Q2 fiscal year 2026, with a total of ¥58.7 billion for fiscal year 2026 [4][8] Murata Manufacturing - **Market Conditions**: Not expecting tight supply-demand conditions for MLCCs in the near future. Global MLCC shipment value is projected to increase from $12.64 billion in 2023 to $14.84 billion in 2025 (+11.6% YoY). - **Operational Performance**: Forecasting operating profit of ¥269.9 billion for fiscal year 2026, with a significant impact from currency fluctuations [9][10] TDK - **Earnings Outlook**: Expected operating profit of ¥266.3 billion for fiscal year 2026, marking a sixth consecutive year of all-time high profits. - **Product Focus**: Mobile-device rechargeable batteries and HDD-related business are key profit drivers. Anticipated improvements in HDD-related business profitability [10][11] Meiko Electronics - **Long-term Growth**: Projected operating profit of ¥24.1 billion for fiscal year 2026, driven by strong sales to smartphone and gaming segments. - **Strategic Initiatives**: Forming a joint venture with Taiwan-based ACCL to enhance production capabilities for AI servers [13][21] Additional Insights - **MLCC Market Dynamics**: MLCCs are critical components across various electronic devices, with AI server-related business expected to contribute approximately 7% of MLCC shipment value in 2025. - **Currency Impact**: A single yen change against the USD is estimated to impact operating profit by approximately ¥4.5 billion for Murata and ¥900 million for Taiyo Yuden [9][14] Risks and Considerations - **Upside Risks**: High-value-added ABF package products may drive earnings beyond expectations for Ibiden. For TDK, potential growth in HDD heads earnings is not factored into the base case. - **Downside Risks**: Increased competition from Taiwanese peers in the automotive PCB market and potential downturns in auto production could negatively impact Meiko Electronics [19][24][30] This summary encapsulates the key points discussed during the conference call, highlighting the performance and outlook of major players in the electronic components industry in Japan.

Core Insights - Astera Labs (ALAB) is experiencing significant growth driven by strong demand for its PCIe solutions, with Q2 2025 revenues reaching $191.9 million, a 20% sequential increase and 150% year-over-year growth [1][10] Product Performance - The Aries, Taurus, and Scorpio product lines have shown strong demand, collectively contributing about 10% of total sales in Q2 2025, with the Scorpio P-Series switches entering volume production and becoming the fastest-growing product line in the company's history [2][10] - Astera Labs is ramping production of its PCIe 6 connectivity portfolio to support modern AI platforms, including new products like Aries 6 PCIe Smart Gearbox and Scorpio P-Series Smart Fabric Switches [3] Strategic Partnerships - The company has expanded its collaboration with NVIDIA to enhance the NVLink Fusion ecosystem, providing hyperscalers with high-performance network options and integrating PCIe, CXL, and Ethernet within its Intelligent Connectivity Platform [4] Competitive Landscape - ALAB faces stiff competition from industry players like Broadcom and Marvell Technology, both of which are advancing their PCIe retimer solutions [5] - Broadcom is developing advanced solutions to enhance signal quality in high-speed data environments, while Marvell Technology is leveraging its Pulse-Amplitude Modulation technology for high-bandwidth communication [6][7] Stock Performance and Valuation - ALAB shares have increased by 73.8% year-to-date, outperforming the broader Zacks Computer & Technology sector's 23.7% return [8] - The stock is trading at a premium with a forward 12-month Price/Sales ratio of 40.90X compared to the Internet - Software industry's 5.91X, indicating a Value Score of F [11] - The consensus estimate for 2025 earnings is $1.58 per share, suggesting an 88.10% year-over-year growth, with ALAB holding a Zacks Rank 1 (Strong Buy) [13]

RT Iain Martin (@_IainMartin)Nvidia’s Jensen Huang just bet $500 million that a tiny data center startup can become a British rival to Coreweave. https://t.co/VSIUOmP1Lj ...

Financial Data and Key Metrics Changes - TELUS achieved total mobile and fixed customer growth of 198,000 in Q2 2025, driven by mobile phone and connected device additions of 167,000 and fixed customer additions of 31,000 [7][8] - Postpaid mobile phone churn remained at 0.9%, consistent with Q2 of the previous year, marking the twelfth consecutive year below the 1% level [8] - TTEC EBITDA growth, including TELUS Health, was up 4%, consistent with Q1 results [8][19] - Free cash flow increased by 11% year-over-year to CAD 535 million, driven by higher EBITDA and lower capital expenditures [23][25] - Adjusted net income was CAD 342 million, with an EPS of CAD 0.22 [22] Business Line Data and Key Metrics Changes - TELUS Health reported an extraordinary adjusted EBITDA growth of 1629%, with operating revenue also reflecting significant growth [10][19] - Fixed data services revenue grew by 3% year-over-year, marking the eighteenth consecutive quarter of positive growth [19] - Mobile network revenue experienced a slight decline due to lower mobile phone ARPU, which fell by 3.3% [18][19] Market Data and Key Metrics Changes - The competitive landscape in the mobile sector remains challenging, with ongoing pressures on ARPU due to market conditions [18][19] - TELUS is the only company in the industry to deliver positive net additions in the wireline sector, highlighting its competitive advantage [9] Company Strategy and Development Direction - TELUS announced a CAD 2 billion investment to expand broadband services in Ontario and Quebec, reflecting its commitment to enhancing connectivity [5][6] - The company is focusing on bundling wireless and wireline broadband services to differentiate itself from competitors [6][10] - TELUS is pursuing a strategy of monetizing its tower infrastructure through the establishment of Terion, which will build new towers and enhance financial flexibility [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Canadian market, emphasizing the importance of private investment and innovation [6][7] - The company anticipates continued improvements in its leverage ratio, aiming for a net debt to EBITDA ratio of three times by 2027 [24][26] - Management highlighted the importance of AI and digital solutions in driving operational efficiencies and enhancing customer experiences [82][83] Other Important Information - TELUS Friendly Future Foundation raised over CAD 2.6 million to support student bursaries, demonstrating the company's commitment to community engagement [16] - The company is actively pursuing partnerships to enhance its service offerings and expand its market reach [14][76] Q&A Session Summary Question: Strategic shift regarding the proposed privatization of TIAXT - Management clarified that the move is related to supporting deleveraging goals and does not indicate a change in monetization strategies for other tech ventures [31][32] Question: Financial details on the towers and EBITDA - Management did not disclose specific EBITDA figures but confirmed that all towers will operate at fair market value rent, ensuring transparency [34] Question: Long-term impact of tower deals and colocation opportunities - Management indicated that demand for data continues to rise, and the partnership with Terion will support cash flow positivity through tower construction and colocation [40] Question: Market pricing discipline and sustainability - Management expressed cautious optimism about the current pricing trends, noting that irrational pricing cannot be sustained in the long term [41][42] Question: Sustainability of fixed data growth - Management highlighted the diversity of contributions to fixed data growth and expressed confidence in the sustainability of this growth moving forward [68] Question: Update on deleveraging drivers, particularly real estate - Management discussed ongoing efforts to rationalize real estate and the potential for significant monetization opportunities in the future [72][73] Question: Role of traditional telcos in the AI ecosystem - Management identified three key areas for growth in the AI ecosystem, including leveraging existing infrastructure and enhancing internal operations through AI [81][82]

Financial Data and Key Metrics Changes - Sales for Q1 2026 were $203 million, with a gross margin of 48.2%, operating margin of 11.1%, and non-GAAP EPS of $0.09, reflecting a 5% sequential increase and a 22% year-over-year increase in sales [14][15][19] - Gross margin improved by 260 basis points sequentially, while operating margin increased from 9% in Q4 to 11.1% [18][19] - Cash flow from operations was $62 million, with free cash flow at $51 million, representing 25% of sales [19] Business Line Data and Key Metrics Changes - Automotive sales increased by 3% sequentially, led by eMobility sales, which rose by 16% sequentially and 31% year-over-year [15] - Industrial and other sales grew by 11% sequentially and 50% year-over-year, driven by data center, robotics, and automation [15][17] - Magnetic sensor sales increased by 10% sequentially and 12% year-over-year, while power products sales declined by 2% sequentially but increased by 43% year-over-year [17] Market Data and Key Metrics Changes - Sales by geography were distributed as follows: 28% in China, 24% in the rest of Asia, 17% in Japan, 16% in The Americas, and 15% in Europe [17] - Distributor inventory dollars declined by 13% sequentially and 28% year-over-year, indicating a tightening supply chain [16] Company Strategy and Development Direction - The company aims to demonstrate relentless innovation to drive performance leadership in new and existing markets, with a focus on eMobility, data centers, robotics, and clean energy [6][7] - New product releases include innovative current sensor ICs for XEV inverters and a 48-volt motor driver IC for AI data centers, enhancing the company's competitive position [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong bookings and backlog, with expectations for Q2 sales to range between $205 million and $215 million, reflecting a 12% year-over-year increase [20][21] - The automotive production forecast has been revised to a flat vehicle production landscape, indicating potential recovery signs in the automotive sector [40][41] Other Important Information - The company made a voluntary debt repayment of $35 million, reducing net debt to $181 million [19] - The effective tax rate for the quarter was 9.5%, with interest expense at $5.5 million [19] Q&A Session Summary Question: Can you talk about the forward demand picture and inventory refills? - Management noted strong bookings and backlog, with discussions about potential future component shortages indicating increased demand [25][26] Question: How is the industrial exposure, particularly in clean energy? - The company highlighted a broad industrial market with strong growth in data centers, robotics, and automation, despite some softness in clean energy [30][31] Question: What drove the upside in gross margin? - The gross margin exceeded expectations due to higher revenue and favorable cost dynamics, with a projected increase towards 50% in the coming quarters [35][36] Question: How do you see automotive demand recovery? - Management observed positive signs for automotive demand recovery, with increased customer discussions about expedited material delivery [41] Question: What is the outlook for distribution channel restocking? - The company expects distribution sales to be flat in Q2, with potential restocking of select parts as inventory levels normalize [57][58] Question: Can you discuss trends in China? - The company reported strong momentum in China, particularly in eMobility, while acknowledging competitive pressures and geopolitical concerns [60][61] Question: What is the strategy for capital deployment? - The focus remains on debt repayment as the most accretive action, with no immediate plans for share buybacks or dividends [96][97]

Project Expansion - OpenAI 将通过在挪威建造新的数据中心，把 Stargate 项目扩展到欧洲 [1]

AI Infrastructure - Meta is building a 5GW AI data center [1]

Core Insights - Credo Technology Group Holding Ltd (CRDO) has experienced significant revenue growth, driven by strong demand for high-speed connectivity solutions despite facing tariff challenges and macroeconomic uncertainties [1][3][10] - The company's operating margin expanded by 2,500 basis points in fiscal 2025, indicating effective operational discipline and profitability improvements [2][10] - CRDO anticipates revenues exceeding $800 million in fiscal 2026, representing over 85% year-over-year growth, with a projected non-GAAP net margin approaching 40% [4][10] Revenue Growth - CRDO's revenues nearly tripled from the first to the fourth quarter of fiscal 2025, showcasing its ability to adapt to market shifts [3][10] - The company has seen strong growth in its HiWire Active Electrical Cables (AECs), optical products, and retimer products, with a robust pipeline for future offerings [3][4] Operational Efficiency - Operating expenses for CRDO grew at a significantly slower rate than revenues, contributing to a substantial increase in profitability [2][10] - The company is strategically aligned with AI and data center trends, enhancing its operational excellence [4] Market Position and Competitors - CRDO's share price increased by 41.4% year-to-date, outperforming the Electronics-Semiconductors industry, which grew by 13.1% [11] - The forward 12-month price/sales ratio for CRDO is 19.63, significantly higher than the sector's average of 8.67, indicating strong market positioning [12] Earnings Estimates - The Zacks Consensus Estimate for CRDO's earnings for fiscal 2026 has seen significant upward revisions over the past 60 days, reflecting positive market sentiment [13][14]

Core Insights - SkyWater Technology (SKYT) is set to acquire Fab-25 from Infineon Technologies, with the deal expected to close on June 30, 2025, which will enhance its position in U.S. semiconductor manufacturing and meet the rising demand for domestically sourced chips [1][3][8] Group 1: Acquisition Details - The acquisition of Fab-25 is backed by a four-year supply agreement exceeding $1 billion, anticipated to generate $300 million in incremental revenues for fiscal 2025 [2][8] - Fab-25 is a 200 mm CMOS facility that will expand SkyWater's foundry capabilities, supporting critical applications in automotive, industrial, and defense sectors [3][8] - The integration of Fab-25 aligns with national onshoring priorities, enhancing SkyWater's relevance in the evolving global supply chain [3][4] Group 2: Competitive Landscape - SkyWater faces competition from Tower Semiconductor, which specializes in analog and mixed-signal ICs and has a strategic partnership with Semtech to scale SiGe wafer production for AI and 5G applications [5] - GlobalFoundries is another competitor, offering scalable 200 mm and 300 mm wafer production, serving high-demand sectors like automotive and defense, and providing broader industry reach and advanced process diversity [6] Group 3: Financial Performance and Valuation - SkyWater's shares have declined by 34.3% year-to-date, contrasting with the Zacks Electronics – Semiconductors industry's return of 5.2% [7] - The company trades at a forward 12-month price-to-sales ratio of 1.28, significantly lower than the industry's average of 8.18, indicating potential value for investors [9] - The Zacks Consensus Estimate for SkyWater's 2025 loss is projected at 1 cent per share, unchanged over the past 30 days, while the company reported earnings of 6 cents per share in 2024 [10]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $1.7 billion, down 10% sequentially and down 1% year over year [8][17] - Non-GAAP EPS was a loss of $0.30 per share, at the high end of the guidance range [19] - Cash and cash equivalents increased from $1.3 billion to $1.5 billion [19] Business Line Data and Key Metrics Changes - Client revenue was $927 million, down 10% sequentially [17] - Consumer revenue was $571 million, down 5% quarter over quarter [17] - Cloud revenue was $197 million, down 21% sequentially [17] - ASPs were down high single digits, reflecting continued oversupply in the market [9][18] Market Data and Key Metrics Changes - Analysts estimate cloud CapEx from major hyperscale providers grew over 50% to approximately $240 billion in calendar year 2024, expected to reach approximately $330 billion in 2025 [14] - Bit allocation to enterprise SSD applications represented 12% of total bits this quarter, up from 8% in the same quarter of the prior year [15] Company Strategy and Development Direction - The company aims to create value for customers and shareholders while reaffirming leadership in the NAND market [5] - Focus on capital discipline and driving higher returns on invested capital [7] - Plans to reduce wafer production to align supply with demand and enable sustainable pricing [9] Management's Comments on Operating Environment and Future Outlook - Management sees an undersupplied market through the end of next year, with expectations for pricing to start increasing [29] - Positive signs include strengthening transactional markets and encouraging customer engagements [21] - The company expects demand to strengthen throughout the year, driven by various factors including the Windows 10 end of life and post-pandemic PC refresh [21] Other Important Information - The company recorded a non-cash impairment charge of $1.83 billion for goodwill, reducing the goodwill balance to $5 billion [19] - Non-GAAP gross margin for the third quarter was 22.7%, with expectations for the fourth quarter to be between 25.5% and 27% [18][22] Q&A Session Summary Question: Can you discuss the supply-demand situation and the actions taken? - Management sees an undersupplied market through the end of next year and is taking prudent actions to balance supply and demand [29][30] Question: How is the enterprise SSD market performing? - Demand has been consistent, with expectations for significant revenue growth in the enterprise SSD segment [35] Question: What are the expectations for NAND bit shipments? - The company expects NAND bit volume to grow low double digits this calendar year, with good visibility across various markets [57][60] Question: How does the company view pricing trends? - Management believes the market is turning, with price increases expected due to improved demand across the board [82] Question: What is the impact of the yen exchange rate on costs? - The front end is exposed to the yen, but not all costs are yen-denominated, which should be considered in modeling [85]