Summary of Conference Call Notes Industry Overview - **Industry**: Greater China Technology Hardware - **Focus**: GB200/300 rack shipments and forecasts Key Points 1. **Forecast Adjustment**: The forecast for GB200/300 racks has been raised to approximately 34,000 units, up from 30,000 units, primarily due to strong guidance from Hon Hai, which anticipates a 300% quarter-over-quarter growth in AI rack shipments for Q3 [2][9] 2. **Market Share**: Hon Hai is expected to account for about 57% of the market in 2025, with an estimated 19,500 racks shipped [2][18] 3. **Q3 Expectations**: Total racks for Q3 are now expected to reach 11,600, an increase from the previous estimate of 10,000 to 11,000 racks, driven by Hon Hai's positive guidance [3][9] 4. **Q4 Projections**: Q4 is projected to see further growth, with an estimated 15,700 racks, as demand for GB300 racks ramps up [4][9] 5. **GB200/300 Split**: The estimated mix for GB200/300 racks in 2025 is 87% for GB200 and 13% for GB300 [4][21] 6. **CY26 Forecast**: For CY26, assuming a carryover of approximately 2 million Blackwell chips, assemblers could potentially assemble over 60,000 racks, even if NVIDIA chip production remains flat year-over-year [5] Additional Insights 1. **ODM Preferences**: The order of preference among major ODMs is Hon Hai > Wistron > Quanta, indicating a strong confidence in Hon Hai's capabilities [1][5] 2. **Investor Sentiment**: Following Hon Hai's guidance, investor confidence has reportedly returned, suggesting a positive outlook for the sector [3] 3. **Capacity Transition**: Wistron is expected to increase shipments in Q4 after undergoing a capacity transition in Q3 [4] 4. **Exhibits**: Monthly and quarterly estimates for rack shipments by major ODMs are provided in the exhibits, showcasing detailed projections [2][10][13] Risks and Considerations 1. **Market Risks**: Potential risks include geopolitical developments affecting foreign investment, slower-than-expected AI server penetration, and fierce price competition in the mega data center segment [27][29] 2. **Growth Assumptions**: The forecasts are based on current assumptions and may be subject to change based on market conditions and company performance [5][9] This summary encapsulates the essential insights and projections regarding the GB200/300 rack market and the performance of key players within the Greater China Technology Hardware industry.

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or downside risks [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Kimball Electronics (KE) Analysis - Kimball Electronics has experienced a significant price increase of 33.2% over the past four weeks, indicating growing investor interest [4] - The stock has gained 47.5% over the past 12 weeks, with a beta of 1.22, suggesting it moves 22% more than the market [5] - KE has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to KE earning a Zacks Rank 1 (Strong Buy), which is associated with strong momentum effects [7] - KE is currently trading at a Price-to-Sales ratio of 0.42, suggesting it is undervalued as investors pay only 42 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides KE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Financial Performance - Q4 Fiscal 2025 - Net sales for Q4 were $381 million, a 12% decrease compared to Q4 of fiscal 2024[12, 14] - Excluding AT&M, the net sales decrease was 8%[14, 29] - Gross margin rate in Q4 was 8%, a 50 bps decline compared to Q4 of fiscal 2024[30, 32] - Adjusted selling & administrative expense totaled $10.8 million, a 23% reduction compared to $14 million in Q4 last year[37] - Adjusted operating income was $19.6 million, or 5.2% of net sales[41] Segment Performance - Medical sales were $107 million, up 5% compared to the same period last year, representing 28% of total company revenue[15, 17] - Automotive net sales were $184 million, a 13% decrease compared to Q4 last year, representing 48% of total company sales[19, 22] - Industrial net sales were $90 million, down 12% year-over-year excluding AT&M, representing 24% of total company sales[23, 25] Fiscal Year 2025 Highlights - Net sales totaled $1.487 billion, the 3rd highest annual revenue total in the company's history[58] - Inventory was down nearly 20% year-over-year[58] - Debt was down 50% within the fiscal year[58] Fiscal Year 2026 Guidance - Net sales are projected to be $1.350 - $1.450 billion, a 2% to 9% decrease compared to fiscal 2025[59] - Capital expenditures are expected to be $50 - $60 million[59]

Core Insights - Foxconn reported a 27% year-over-year increase in operating profit for Q2 2025, driven by its expanding AI server business [1][3] - The company's net profit for Q2 reached NT$44.36 billion, surpassing LSEG's SmartEstimates of NT$38.81 billion [2] - Foxconn anticipates over 170% year-over-year revenue growth in its AI server business for the current quarter [3] Financial Performance - Revenue for the quarter was NT$1.79 trillion (approximately $59.73 billion), consistent with previous estimates [6] - Operating profit was NT$56.596 billion, compared to NT$49.767 billion in the prior year [6] Strategic Developments - Foxconn has formed a strategic partnership with TECO Electric & Machinery to invest in AI data centers [4] - The company is diversifying its operations, including ventures into electric vehicle assembly and semiconductor manufacturing [4] Market Position and Challenges - Foxconn is a key partner to Nvidia, manufacturing server racks designed for AI workloads [3] - The company has shifted most of its iPhone production for the U.S. market to India in response to U.S. tariffs [5]

Core Viewpoint - The technology and securities sectors are experiencing significant growth, with Industrial Fulian leading the charge, achieving a record high stock price and substantial trading volume, reflecting strong market enthusiasm for AI-related infrastructure [1][3]. Group 1: Company Performance - Industrial Fulian's market capitalization has reached 867.5 billion, making it the top technology stock in China and the eighth largest in the A-share market [3]. - Since hitting a low of 13.94 yuan on April 9, Industrial Fulian's stock has surged by 213%, showcasing rare growth for a company of its size in the A-share market [3]. - The company reported a revenue of 360.76 billion yuan for the first half of 2025, a year-on-year increase of 35.58%, and a net profit of 12.11 billion yuan, up 38.61% [3]. Group 2: Market Dynamics - The core logic behind the market's enthusiasm for Industrial Fulian is its critical role in AI computing infrastructure, benefiting from the explosive growth in global AI computing demand [3]. - Industrial Fulian has established significant technological barriers and production capacity advantages in cutting-edge technology areas such as 800G high-speed switches and liquid cooling systems [3]. - The company has secured visibility of orders extending to 2027, indicating strong future demand [3]. Group 3: Industry Outlook - Foxconn's parent company, Hon Hai Group, reported record high revenues, with significant growth in AI server business [4]. - Goldman Sachs projects that Hon Hai's AI server revenue will grow by 110% and 59% year-on-year in 2025 and 2026, respectively, with revenue expected to rise from 1.7 trillion New Taiwan dollars in 2025 to 2.6 trillion New Taiwan dollars in 2026 [4].

Core Viewpoint - The article highlights Fabrinet as a promising growth stock, supported by its strong earnings growth, cash flow growth, and positive earnings estimate revisions, making it a suitable choice for growth investors [2][10]. Group 1: Earnings Growth - Fabrinet has a historical EPS growth rate of 25.6%, with projected EPS growth of 17.5% for the current year, surpassing the industry average of 15.9% [5][4]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for Fabrinet is 14.4%, significantly higher than the industry average of -14% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 17.1%, compared to the industry average of 5.1% [7]. Group 3: Earnings Estimate Revisions - The current-year earnings estimates for Fabrinet have been revised upward, with the Zacks Consensus Estimate increasing by 3.6% over the past month [8]. - This positive trend in earnings estimate revisions contributes to Fabrinet's Zacks Rank of 2 (Buy) [10]. Group 4: Overall Positioning - Fabrinet's combination of a Growth Score of B and a Zacks Rank of 2 positions it well for potential outperformance in the market, making it an attractive option for growth investors [10].

Company Overview - Celestica is one of the largest electronics manufacturing services companies globally, headquartered in Ontario, Canada, serving original equipment manufacturers and various service providers across multiple industries [11] - The company offers a wide range of manufacturing and supply-chain solutions, including design and development, engineering services, electronics manufacturing and assembly, logistics, and IT asset management [11] Investment Highlights - Celestica holds a 1 (Strong Buy) rating on the Zacks Rank, indicating strong potential for investment [12] - The company has a VGM Score of B, with a Momentum Style Score of A, reflecting its strong performance in the market [12] - Over the past four weeks, Celestica's shares have increased by 23.5%, showcasing significant momentum [12] - Analysts have revised earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate rising by $0.50 to $5.55 per share [12] - Celestica has an average earnings surprise of +7.7%, indicating a history of exceeding earnings expectations [12][13]

Core Viewpoint - Celestica (CLS) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding Celestica's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, Celestica is projected to earn $1.45 per share, representing a 39.4% increase from the previous year, with a 14.96% rise in the Zacks Consensus Estimate over the last 30 days [7]. - For the full year, the earnings estimate is $5.55 per share, indicating a 43.0% increase from the prior year, with three estimates moving up and no negative revisions [8]. Zacks Rank and Performance - Celestica has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, which historically correlate with strong stock performance [9]. - Stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500, indicating a strong potential for Celestica's stock [9]. Recent Stock Performance - Celestica shares have increased by 30.8% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects [10].

Core Insights - Flex has introduced a new power shelf system designed to support 800 VDC power architectures, addressing the increasing demands of AI infrastructure and AI factories [2][5] - The power shelf system is optimized for NVIDIA GB300 NVL72 systems, achieving peak efficiency of 97.5% at half-load and reducing power conversion losses by over 60% compared to conventional systems [4][5] - Flex aims to facilitate the deployment of 1 megawatt IT racks and prepare the industry for the transition to 800 VDC data center power infrastructure [3][5] Product Features - The Flex power shelf system delivers up to 33 kW per shelf in a compact, industry-standard footprint, featuring six power supply units in a 3+3 redundant configuration [4] - It is fully compatible with the NVIDIA GB300 NVL72 platform, which includes 72 NVIDIA Blackwell Ultra GPUs, supporting high-performance workloads for AI applications [4][6] - The system is designed to lower heat output, cooling demands, and energy costs, making it suitable for the evolving needs of data centers [4][6] Industry Impact - Flex's collaboration with NVIDIA enables hyperscale and colocation customers to deploy next-generation AI infrastructure more efficiently as they scale towards 1 MW racks [3][5] - The introduction of the power shelf system is part of Flex's broader strategy to enhance data center manufacturing capabilities and address power, heat, and scale challenges in the AI era [6][8] - Flex plans to initiate full-scale production of 800 VDC power components in alignment with the release of NVIDIA Kyber rack-scale systems, ensuring scalability for demanding AI models [5][6]

Group 1: Company Highlights - Celestica (CLS) is one of the largest electronics manufacturing services companies globally, serving various industries, with a 9.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - SB Financial Group (SBFG) is a financial services holding company providing a full range of services for consumers and small businesses, also experiencing a 9.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - HomeTrust Bancshares (HTB) focuses on attracting deposits and investing in loans secured by mortgages, with a 7.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Houlihan Lokey (HLI) is a global investment bank specializing in mergers and acquisitions, with a 6.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Udemy (UDMY) offers online courses across various subjects, with a 4.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5]