Cheaper artificial intelligence tools from China threaten to trigger a sudden sell-off in US tech giants betting on generative AI, according to the investment chief at one of Australia’s largest pension funds https://t.co/KBjvIGwMHF ...

Key Points Philippe Laffont's Coatue Management saw generative AI as a major threat to this tech incumbent. Recent developments may have pushed Laffont and his team to change their view. The stock still trades at an attractive valuation. 10 stocks we like better than Alphabet › In a presentation this summer, Coatue Management, headed by billionaire fund manager Philippe Laffont, laid out its case for what it sees as the next group of tech leaders. Unsurprisingly, it sees artificial intelligence ( ...

We think of West and we think about Amazon as a hyperscalers cloud and stuff, but there is so much more. And getting to know what you do. I mean, you're talking with folks in gaming sports video.They're trying to engage with the consumer at all different levels. There's so much happening and I appreciate you laying out those stats and then also watching that presentation on an app. I very much appreciate that.I think let me start with you. Fundamentally, the cloud has become the backbone of media distributi ...

Financial Data and Key Metrics Changes - The company reported revenues of $215 million for Q3 2025, a 2% increase year-over-year, and year-to-date revenue has increased by 6% [18][7] - Non-GAAP gross margin for Q3 was 52.6%, lower than expected due to reduced software sales to U.S. government customers, but overall gross margin improved sequentially by 50 basis points [18][19] - Adjusted EBITDA for Q3 was $29 million, a $1 million decrease from the prior year, driven by lower gross margins [19][18] Business Line Data and Key Metrics Changes - IP Optical Networks revenue for Q3 was $91 million, an 11% increase year-over-year, with a positive EBITDA contribution of $1 million [21][11] - Cloud and Edge segment revenue for Q3 was $124 million, a decrease of 3% year-over-year, with adjusted EBITDA down $10 million year-over-year [22][15] - Sales to service providers increased by 5% year-over-year, while sales to enterprise customers decreased by approximately 3% year-over-year [8][15] Market Data and Key Metrics Changes - Sales to Europe, Middle East, and Africa grew 26% year-over-year, while sales to Asia-Pacific increased by 13%, led by India [10][12] - North American sales were impacted by lower U.S. federal sales, declining approximately 10% year-over-year [10][15] - The company expects continued strong execution in North America, particularly with Verizon projects [26][29] Company Strategy and Development Direction - The company is focusing on AI ops and automation through its new product, Acumen, which aims to help customers transition to autonomous networks [4][5] - The strategy includes expanding the Cloud and Edge portfolio to support agentic AI platforms and enhancing network reliability [4][6] - The company is optimistic about the convergence of AI and voice technologies, viewing it as a significant opportunity for growth [7][29] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. government shutdown has delayed procurement processes but emphasized that no business has been lost, only delayed [9][8] - The outlook for Q4 remains strong, with expectations for it to be the strongest quarter of the year despite the shutdown [25][29] - The company anticipates revenue in a range of $230 million to $250 million for Q4, with adjusted EBITDA projected between $42 million and $48 million [28][29] Other Important Information - The company repurchased approximately 900,000 shares for a total cost of $3.5 million during Q3 [23] - The company is experiencing foreign exchange headwinds of approximately $3 million year-over-year, primarily due to the shekel [43][42] - The company has identified several new growth vectors related to AI technology and autonomous network operations [30][29] Q&A Session Summary Question: Future growth from AI and automation - Management views AI ops as a new category that will drive growth in the Cloud and Edge segment, allowing customers to build their own smart agents [32][33] Question: Performance of Verizon and U.S. IP Optical Networks - Verizon grew about 20% year-over-year in Q3, with a focus on services rather than products [34][35] Question: Impact of the government shutdown - Management believes that without the shutdown, they would have comfortably met or exceeded guidance for Q3 [37][38] Question: Foreign exchange and tariff impacts - Foreign exchange impacts were approximately $3 million, while tariffs are a smaller headwind of about $0.5 million per quarter [42][45] Question: Sustainability of growth in India - India has shown sustained momentum over the past five quarters, with a strong partnership with BARDI contributing to growth [49][50] Question: Expectations for government business growth - Management anticipates solid growth in government programs as they expand deployments and seek new customers [70][69]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $215 million, a 2% increase year over year, and year-to-date revenue increased by 6% [18][7] - EBITDA for Q3 was $29 million, a decrease of $1 million from the prior year, with a non-GAAP tax rate of 40% [19][20] - Non-GAAP diluted earnings per share were $0.04, down from $0.01 in the prior year [20] Business Line Data and Key Metrics Changes - IP Optical Networks revenue increased by 11% year over year to $91 million, with a non-GAAP gross margin of 39.4% [21] - Cloud and Edge revenue decreased by 3% year over year to $124 million, with a non-GAAP gross margin of 62.2% [22] - Sales to service providers increased by 5% year over year, while sales to enterprise customers decreased by approximately 3% [8][15] Market Data and Key Metrics Changes - Sales in Europe, Middle East, and Africa grew by 26% year over year, while sales in Asia-Pacific increased by 13% [10] - North American sales were impacted by a decline of approximately 10% year over year due to lower U.S. federal sales [10][15] - Sales to India increased by 31% year over year, contributing to strong growth in the Asia-Pacific region [12] Company Strategy and Development Direction - The company is focusing on AI ops automation with the launch of the Acumen platform, aimed at enhancing network reliability and performance [4][5] - There is a strategic emphasis on the convergence of AI and voice technologies, with significant opportunities identified in this area [7][29] - The company expects Q4 to be the strongest quarter of the year, despite uncertainties related to the U.S. government shutdown [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. government shutdown has delayed procurement processes but emphasized that no business has been lost [9][38] - The fundamentals of the Cloud and Edge and IP Optical Networks businesses remain strong, with good demand from service provider and enterprise customers [9][29] - The company anticipates continued growth in voice communications and investment in data centers and fiber networks [29] Other Important Information - The company repurchased approximately 900,000 shares for a total cost of $3.5 million during the quarter [23] - The company expects Q4 revenue to be in the range of $230 to $250 million, with adjusted EBITDA projected between $42 to $48 million [28] Q&A Session Summary Question: Impact of AI on Cloud and Edge growth - Management views AI as a new category that will drive growth in Cloud and Edge, with a focus on AI ops and the convergence of voice and AI [32][33] Question: Performance of Verizon and U.S. IP Optical Networks - Verizon grew about 20% year over year in Q3, with a shift towards services rather than products [34] - U.S. IP Optical business is expected to be lumpy, with revenue influenced by various projects [35] Question: Quantifying the impact of the government shutdown - Management indicated that the shutdown impacted Q3 results, with a potential revenue loss of around $10 million to $15 million in Q4 [61][62] Question: Future growth of government program business - Management anticipates solid growth in government programs, particularly with new voice modernization projects [67][69] Question: BEAD funding and its impact - Management has not factored BEAD funding into the outlook yet, as the timing and execution remain uncertain [78] Question: New product innovations and potential business segments - The Acumen product spans both business units, and while it currently falls under Cloud and Edge, future categorization may evolve [83]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4][5] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive has bureaus and studios in key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Group 2 - The company is focused on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

Core Insights - The report titled "Transforming Commercial Pharma with Agentic AI" highlights the rapid adoption of AI agents in the pharmaceutical industry, indicating strong momentum and clear priorities for the sector [1][7] Industry Adoption and Trends - A global study involving 250 senior executives from the pharmaceutical, biotech, and bioengineering sectors reveals that nearly 73% of respondents are planning, piloting, or deploying agentic AI initiatives, with some already in production [8] - The adoption of agentic AI is expected to increase significantly over the next 12 to 18 months, with a focus on market intelligence, patient support, compliance, and data integration as the highest-priority use cases [8] Economic Impact - Generative AI is projected to create between $60 billion and $110 billion annually in economic value for the pharmaceutical and medical product industries, positioning agentic AI as a catalyst for transformation [3] Data and Compliance Priorities - A significant 84% of respondents emphasize the importance of data standardization and integration as a high or medium priority to enable AI agents to deliver value [4][8] - Regulatory compliance (51%), data standardization (49%), patient support (46%), and market intelligence (46%) are identified as the top priorities for AI implementation [8] Challenges to Deployment - The main challenges to deploying agentic AI include workflow design/orchestration (60%) and compliance/validation (55%), followed by tech infrastructure (42%) and data governance (38%) [8] Strategic Vision - Industry leaders advocate for viewing agentic AI as an integral part of core business processes rather than a standalone tool, emphasizing the need for human oversight and clear operational guidelines [5][6] - The strategic integration of agentic AI is seen as a historic opportunity to enhance collaboration between technology and human resources, ultimately improving patient outcomes and industry innovation [9]

Core Insights - Broadcom's stock surged nearly 10% following a major deal with OpenAI, highlighting the company's strong position in the data center market [1] - The CEO of Broadcom, Hawk Tan, emphasized the necessity of investing in compute capacity to support select customers running large language models (LLMs) [3][10] - Broadcom is focusing on a narrow group of key players in the generative AI space, indicating a strategic approach to partnerships and investments [12][13] Company Overview - Broadcom is a significant player in the chip and networking equipment industry, with a recent emphasis on AI and compute capacity [1][10] - The company has a history of collaboration with major tech firms like Google, which has informed its strategy in developing custom AI accelerators [6][12] - Broadcom's acquisition of VMware has been beneficial, contributing substantial cash flow while growing [18] Industry Context - The demand for compute capacity in the generative AI sector is rapidly increasing, with requirements doubling annually [17] - The generative AI market is seen as a critical utility for society, comparable to historical technological revolutions [19][20] - The potential economic impact of generative AI could significantly increase its contribution to global GDP, with estimates suggesting it could grow from 30% to 40% of GDP [21]

Core Insights - Proactive provides fast, accessible, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, mining, oil and gas, and emerging technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]