RT David Sacks (@DavidSacks)Today President Trump obtained a pledge from America’s leading tech companies that new data centers would not increase electricity prices for residential consumers.These companies (including Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI) signed the “Ratepayer Protection Pledge” under which they agree to cover the costs of all new power generation required for their data centers, ensuring such costs are not passed onto American households.This is a much better approach ...

President Donald Trump is aiming to contain a political problem posed by the soaring cost of electricity to power data centers https://t.co/ZUkNnvylJm ...

Core Insights - Marvell Technology, Inc. (MRVL) is set to report its fourth-quarter fiscal 2026 results on March 5, 2026, with anticipated revenues of $2.20 billion, reflecting a year-over-year growth of 21% [1][8] - The company expects non-GAAP earnings of 79 cents per share for the fourth quarter, indicating a 31.7% increase year over year [2][8] - MRVL's stock has underperformed, losing 4.9% over the past year compared to the Zacks Electronics – Semiconductors industry's growth of 65.1% [12] Revenue and Earnings Expectations - MRVL's revenue guidance for Q4 fiscal 2026 is $2.20 billion (+/- 5%), with a Zacks Consensus Estimate also at $2.20 billion, indicating a 21% increase from the previous year [1][23] - The expected non-GAAP earnings of 79 cents per share aligns with the Zacks Consensus Estimate, showing a 31.7% year-over-year growth [2][8] Earnings Performance History - In the last four quarters, MRVL's earnings exceeded the Zacks Consensus Estimate in three instances, with an average surprise of 1.17% [3] Competitive Landscape - MRVL faces significant competition from companies like Astera Labs, Broadcom, and Credo Technology in the connectivity market, which may impact its fourth-quarter results [6][7] - Credo Technology has shown strong growth in its AEC business, which could further intensify competition for MRVL [7][8] Market Dynamics and Risks - MRVL's business is characterized by customer concentration, relying heavily on a limited number of large hyperscaler clients, which poses revenue lumpiness risks [6][8] - The company is also dealing with execution and commercialization risks related to its Celestial AI acquisition [6][8] - Macroeconomic uncertainties, including U.S. chip export restrictions and tariffs, present operational and demand-side risks for MRVL [22] Strategic Initiatives - MRVL is focusing on enhancing its role in AI infrastructure and data centers through initiatives like the Golden Cable initiative, aimed at accelerating the deployment of Active Electrical Cable (AEC) solutions [19][20] - The company is also benefiting from the adoption of scale-up switches that require high bandwidth and low latency, supporting next-generation connectivity [21] Valuation Metrics - MRVL's stock is currently trading at a forward 12-month price-to-sales (P/S) multiple of 6.96X, which is lower than the industry average of 8.09X, indicating a potentially attractive valuation [15]

Financial Data and Key Metrics Changes - GAAP EPS for the fourth quarter was $9.05, including a tax benefit of $78.5 million, or $3.98 per share, primarily due to a U.S. tax deduction related to the Prospera investment [20] - Adjusted diluted EPS was $4.92, up 28.1% year-over-year [21] - For the full year, adjusted diluted EPS was $19.09, an increase of 11.1% over 2024 [30] Business Line Data and Key Metrics Changes - Infrastructure sales grew 7.2% year-over-year to $819 million, with utility sales increasing by 21% due to strong market conditions and higher volumes [24] - Agriculture sales decreased 19.9% year-over-year to $222.7 million, with an operating loss of $3.3 million in the fourth quarter [27] - Coatings sales increased by 6.3%, supported by healthy infrastructure demand [26] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by electrification, AI, and aging infrastructure replacement, with a backlog of $1.5 billion, up 22% from the previous year [10][44] - North American agriculture markets remain challenged, while international sales declined due to economic conditions in Brazil [27][15] - The telecommunications market has normalized, with ongoing investments in wireless and RAN [72] Company Strategy and Development Direction - The company is focused on disciplined resource allocation, safety, and continuous improvement to enhance performance [9] - Investments in technology and aftermarket services are aimed at improving efficiency and customer experience in agriculture [8][16] - The company plans to host an investor day to share deeper insights into its strategy and long-term financial targets [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the utility market's strength, citing multiple demand drivers and a robust backlog [44] - The agriculture segment is expected to see a meaningful recovery in Q1 2026, with a focus on improving margins [45][49] - The company anticipates net sales for 2026 to be between $4.2 billion and $4.4 billion, with diluted EPS projected in the range of $20.50 to $23.50 [35][36] Other Important Information - The company acquired the remaining 40% of ConcealFab, enhancing its technology and product pipeline [12] - A total of $250 million was returned to shareholders, including $198 million through share repurchases [32] Q&A Session Summary Question: Confidence in utility demand and changes in customer investment - Management is confident in the utility market due to strong drivers like electrification and aging infrastructure, supported by a backlog of $1.5 billion [44] Question: Actions to restore agriculture margins and expected recovery timeline - Management expects a meaningful recovery in agriculture margins in Q1 2026, having taken steps to address previous challenges [45][46] Question: Capital spending increase for utility capacity expansions - The company plans to spend $170 million to $200 million in 2026 on utility capacity expansions, driven by durable demand [53][54] Question: Expected agriculture margins for Q1 and full year - Management anticipates low teens margins in Q1, potentially reaching mid-teens by year-end [51] Question: Growth expectations in non-utility infrastructure segments - Management expects growth across all infrastructure segments, including telecom, coatings, and lighting [72]

Market Trends & Dynamics - The Dow Jones Industrial Average closed up approximately 500 points, representing a 1% increase [2] - The NASDAQ Composite experienced a rise of three-tenths of a percent, recovering from earlier losses [2] - The S&P 500 is just slightly below its all-time high from October [2] - Optimism is prevalent in the market, with potential for the S&P 500 to reach 8,000 points if the Federal Reserve continues easing [11] - Interactive Brokers anticipates a Santa Claus rally, potentially pushing the S&P 500 past the 7,000 milestone [12] Interest Rates & Monetary Policy - The 10-year Treasury note is at 416%, up by approximately two basis points, and the 30-year Treasury note is at 488% [3] - The Federal Reserve's decision to cut interest rates by a quarter point led to rhetoric suggesting a cautious approach [6][7] - The market has already priced in expectations of another rate cut [44] - Apollo internally believes there is no need for a rate cut based on current data [41] Company Performance & Earnings (Oracle & Adobe) - Oracle's Q2 adjusted EPS beat expectations at $226 versus a consensus of $164, but revenue was slightly below estimates at $1606 billion versus $1621 billion [13] - Oracle's Q2 cloud revenue was $8 billion, slightly below the street estimate of $804 billion, while cloud infrastructure revenue was $41 billion, exceeding the estimate of $409 billion [14] - Oracle's remaining performance obligations (RPOs) grew sequentially by $68 billion to $523 billion, indicating new commitments from Meta, Nvidia, and others [19] - Adobe's Q4 adjusted EPS was $550, surpassing the street estimate of $539, and revenue reached $619 billion, exceeding the estimate of $611 billion [36] AI & Data Centers - Oracle executives had previously convinced the street they were an AI winner, but concerns arose regarding customer concentration risk with OpenAI and debt risk related to data center buildout [16] - The demand for data centers is strong, but the return on equity is a function of renewal, with uncertainty surrounding energy usage and technology [56][57] - Concerns exist regarding the debt levels of some tech companies funding their AI ambitions, particularly for intermediaries who are large owners of data capacity [60][61] Private Markets & Credit - Much of the financial press focuses on levered lending when discussing private credit, but most private credit is investment grade [48] - Investors are using levered lending to reduce risk, moving money out of equity or high-yield bonds [51] - Defaults in well-underwritten credit usually have strong recoveries and are not necessarily a sign of something wrong in the economy [54]

Angela, what do you what do you make of this sort of race between Alphabet and in video that we've seen play out over the last couple of days, the narrative shift that, hey, wait a second, Alphabet with a ten year old product might actually have something that could compete with in videos, GPUs. Do you buy it. Yeah, and thanks for having me, Tim.The way I look at this, it is Listen, Nvidia has had the 90% plus market share in the compute side, right, with their GPUs. Our view the whole time was that they we ...

Core Insights - The company, known for AutoCAD and other digital design software, has successfully leveraged the surge in investment within the data center sector [1] Company Summary - The company has capitalized on increased funding in data centers, indicating a strategic alignment with industry trends [1]

Core Insights - Semtech Corporation (SMTC) reported better-than-expected third-quarter fiscal 2026 results, with non-GAAP earnings of 48 cents per share, exceeding the Zacks Consensus Estimate by 4 cents and reflecting a year-over-year improvement of approximately 85% [1][10] - The company's revenues for the third quarter reached $267 million, surpassing the Zacks Consensus Estimate by 0.13% and showing a 13% year-over-year increase, driven by strong demand in data centers [3][10] Revenue Performance - Sales from the infrastructure market totaled $77.9 million, representing 29% of net sales and an 18% year-over-year growth, primarily due to demand for data centers [4] - The industrial market generated $147.2 million in sales, accounting for 55% of net sales, with a 12% year-over-year increase [4] - The high-end consumer market saw sales of $41.9 million, which is 16% of net sales, reflecting a 5% year-over-year growth, supported by strong 5G momentum and IoT transitions [5] Product Line Performance - Signal Integrity sales amounted to $81.6 million, up 14.1% year over year, representing 31% of net sales [6] - Analog Mixed Signal & Wireless sales reached $92 million, increasing 17.1% year over year, accounting for 36% of net sales [6] - IoT System and Connectivity sales totaled $88.3 million, reflecting a 7% year-over-year increase, making up 37% of net sales [6] Margin Analysis - The non-GAAP gross margin expanded to 53%, a 60 basis point increase year over year, although it contracted 20 basis points sequentially [7] - Non-GAAP operating income surged 26.5% year over year to $54.9 million, with the operating margin improving to 20.6% from 18.3% in the previous year [8] Balance Sheet and Cash Flow - As of October 26, 2025, cash and cash equivalents totaled $164.7 million, while long-term debt decreased to $490.5 million [11] - The company generated operating cash flow of $47.5 million and free cash flow of $44.6 million during the third quarter [11] Q4 Guidance - For the fourth quarter, Semtech expects net sales of $273 million, indicating a year-over-year rise of 5% [12] - The company anticipates a sequential increase in infrastructure end-market sales driven by approximately 10% growth in data centers, partially offset by a 3% decline in high-end consumer sales [12][13]

OpenAI CEO Sam Altman said the startup doesn’t want federal guarantees for its data centers or a bailout if it fails, laying out what he thinks the government’s role should be in America’s AI infrastructure build-out https://t.co/WGsUraQ0TH ...

Geopolitical & Economic Landscape - The discussion involves the potential restart of nuclear testing by the US, following Russia's successful testing of a nuclear-capable super torpedo, highlighting geopolitical tensions [1] - A temporary tariff truce or deal with China is mentioned alongside the discussion of nuclear weapons testing, creating a complex situation [3] - Showing strength is important in international relations, particularly with adversaries, and this can be done respectfully [7] - The US needs to demonstrate its strength and innovation to counter the perception of Western decline [9] AI & Industrial Rebuilding - A partnership is announced to fund the Innovators Rebuilding American Industry, focusing on re-industrializing the US through advanced manufacturing in various sectors like bio and aerospace [2][10][11] - Re-industrialization will require trillions of dollars of investment [11] - The discussion touches on the capital-intensive nature of rebuilding American industry, contrasting it with the asset-light model of Silicon Valley [13] - AI is driving significant changes, but there are concerns about a potential bubble and whether the economics justify the massive investments in data centers [16][17] - AI is already creating profitable applications and services, even with current LLMs, suggesting it's not entirely a bubble [19] Investment & Financial Concerns - There are concerns about over-investment in certain areas of AI, potentially echoing the telecom bubble [24] - OpenAI is speculated to go public at a trillion-dollar valuation, indicating high retail demand for AI and defense investments [22] - Palantir is positioned as a key player in deploying AI and productivity solutions for major companies [26]