Company Overview - Rigetti Computing has seen its shares increase by over 3,170% in the last 12 months, turning a $10,000 investment into approximately $327,000, driven by excitement around its quantum computing technology [2] - The company specializes in quantum computing, which utilizes qubits to enhance problem-solving capabilities compared to traditional computing [3] Industry Insights - The quantum computing sector has gained significant attention on Wall Street, particularly after Google's release of its quantum chip, Willow, which outperformed traditional supercomputers [3] - Rigetti and other pure-play quantum stocks provide investors with direct exposure to an industry previously dominated by diversified tech giants, contributing to the overall rise in share prices [4] Business Model - Rigetti's business model includes vertical integration, allowing it to design and manufacture quantum chips in-house, which enhances control over hardware and opens potential foundry service opportunities [5] - The company's "made-in-America" approach aligns with current U.S. political trends favoring onshoring of next-generation technologies, potentially attracting funding from government agencies like DARPA, which previously awarded Rigetti an $8.6 million grant [6]

Financial Data and Key Metrics Changes - Third quarter revenue was $96.1 million, down 2% sequentially from $97.9 million in the second quarter 2025, and up 1% year-over-year from $95.2 million in the third quarter 2024 [13] - Third quarter endpoint IC revenue was $78.8 million, down 7% sequentially from $84.6 million in the second quarter 2025, and down 3% year-over-year from $81 million in the third quarter 2024 [13] - Third quarter systems revenue was $17.3 million, up 30% sequentially from $13.3 million in the second quarter 2025, and up 21% year-over-year from $14.2 million in the third quarter 2024 [13] - Third quarter adjusted EBITDA was $19.1 million, compared to $27.6 million in the second quarter 2025 and $17.3 million in the third quarter 2024 [16] - Third quarter GAAP net loss was $12.8 million, while non-GAAP net income was $17.7 million, or $0.58 per share on a fully diluted basis [16] Business Line Data and Key Metrics Changes - Endpoint IC revenue decreased sequentially but grew 15% when excluding the $16 million second quarter licensing revenue [13] - Systems revenue exceeded expectations, driven by reader strength in supply chain and logistics [14] - Gross margin for the third quarter was 53%, down from 60.4% in the second quarter 2025 but up from 52.4% in the third quarter 2024 [14] Market Data and Key Metrics Changes - Retail volumes grew modestly, influenced by the upcoming holiday season, but with cautious buying patterns from partners and end users [5] - The company expects a modest decline in fourth quarter volumes for both supply chain and logistics and retail endpoint ICs [5] Company Strategy and Development Direction - The company is focusing on expanding its market opportunities in retail, supply chain and logistics, food, and other applications [11] - The introduction of Gen2X is aimed at solving industry challenges and enhancing product offerings, with a focus on customization for various market verticals [10] - The company is aggressively hiring technical and business talent to develop software solutions and capitalize on recurring revenue opportunities [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is dynamic, with adjustments in project timing and delivery requests from partners [20] - The company expects fourth quarter revenue to decline slightly, with guidance between $90 million and $93 million [18] - Management expressed confidence in the long-term growth potential, particularly in the food sector, with expectations for modest volumes in the first half of 2026 and acceleration thereafter [26] Other Important Information - The company issued $190 million of 0% convertible notes while repurchasing $190 million of its 1.125% convertible notes, aimed at reducing interest expense and improving balance sheet flexibility [17] - The company ended the third quarter with cash, cash equivalents, and investments totaling $265.1 million, an increase from $260.5 million in the second quarter 2025 [16] Q&A Session Summary Question: What does the timing mean for Q4 revenue? - Management indicated that Q3 revenue was stronger than anticipated, leading to a natural step down in Q4, with some project timing shifting to the right [20][22] Question: Can you discuss the Walmart announcement? - Management expressed excitement about the Walmart announcement, emphasizing the importance of product freshness and customer experience, with expectations for modest food volumes through the first half of 2026 [25][27] Question: Is there a fundamental problem in tagging produce? - Management clarified that there are no fundamental limits to tagging produce, but challenges exist in the tagging process, which may require innovation in packaging [30] Question: How does Gen2X impact gross margins? - Management stated that Gen2X is expected to help drive adoption of the M800 but does not directly increase gross margins beyond what was already anticipated [51] Question: What are the expectations for operating expenses? - Management expects operating expenses to increase in the fourth quarter, consistent with seasonal patterns, while maintaining fiscal discipline [68]

Q1 Fiscal 2026 Earnings Quarter Ended September 30, 2025 • Reported October 29, 2025 KLA Non-Confidential | Unrestricted 1 Forward Looking Statements Statements in this letter other than historical facts, such as statements pertaining to: (i) future industry demand for semiconductors, WFE, and advanced packaging; (ii) our market position for the future and future growth in demand for our products; (iii) our forecast of financial measures for the following quarter and 2025; (iv) our future revenues by custom ...

Q3'25 FINANCIAL RESULTS October 29, 2025 © Cohu, Inc. All rights reserved. Page 1 Cautionary Statement Regarding Forward-Looking Statements Forward-Looking Statements: Certain statements contained in this presentation may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding order and market trends, design wins, new product introductions or new market opportunities; progress and impact of manufacturing infrast ...

Core Insights - Nvidia has become the first company to exceed a $5 trillion market capitalization, highlighting its significant position in the market [1] - The stock price increased by as much as 5.5% during the session, contributing to its rise above the $5 trillion milestone [1] - Nvidia's strong performance is attributed to its leadership in the artificial intelligence sector, making it a favored choice among both retail and institutional investors [1]

Core Insights - PayPal has accelerated the time-to-market of its AI solutions by five times through the implementation of Nvidia's Nemotron open models and NIM inference microservices [1][2] - The integration of these technologies has resulted in a 50% increase in speed and enhanced developer productivity within weeks of implementation [2] Technological Advantages - The improvements are attributed to an intuitive open architecture that streamlines development and the ability to fine-tune models directly, avoiding less efficient prompt engineering methods [3] - By utilizing open models, PayPal gains unprecedented control over AI deployment, allowing for tailored solutions to specific business challenges [4] Strategic Developments - PayPal is leveraging AI to address slowing account growth and consumer spending, including integrating its wallet with OpenAI's ChatGPT for enhanced payment processing [5] - The company announced new agentic commerce services aimed at helping merchants sell across multiple AI platforms, including OpenAI and Google [5] Nvidia's Role - Nvidia's introduction of the Llama Nemotron models is positioned to assist developers in creating and deploying AI agents across various applications, marking a shift towards a digital workforce [6]

Market Overview - The S&P 500 increased by 0.3%, the Dow Jones Industrial Average rose by 193 points (0.4%), and the Nasdaq Composite gained 0.7%, all near all-time highs, driven by expectations of a Federal Reserve rate cut to support a cooling job market [4][6] - Bond yields remained steady, with the 10-year Treasury yield decreasing to 3.98% from 3.99%, indicating investor caution ahead of the Fed's announcement [4][6] - The equity rally is supported by hopes for lower borrowing costs, although the Fed has cautioned about pausing its easing cycle if inflation accelerates [4][6] Company Earnings - Caterpillar's stock surged by 9.3% after reporting better-than-expected quarterly profit and revenue, attributed to strong demand for construction and mining equipment [5][6] - CVS Health's shares climbed by 3.1% after surpassing profit estimates, despite reporting losses from reducing new primary care clinic openings [5][6] - Teradyne's stock soared by 19% following stronger-than-expected results, with robust demand for AI-related testing cited by CEO Greg Smith [5][6] - Nvidia's stock rose by 4.9%, making it the first company to achieve a $5 trillion market capitalization, significantly boosting the S&P 500 [5][6] - Mondelez International's shares fell by 3.3% despite solid earnings, as the company warned of ongoing challenges from record cocoa prices, although some moderation is expected [5][6] Global Market Performance - Asian markets closed higher, with Japan's Nikkei 225 rising by 2.2% to a new record and South Korea's Kospi increasing by 1.8% following a meeting between President Trump and South Korea's leader [5][6] - Shanghai's Composite Index gained 0.7% ahead of Trump's meeting with Chinese President Xi Jinping amid ongoing trade tensions [5][6] - European stocks showed mixed performance as investors monitored global central bank actions and corporate earnings [5][6]

Core Insights - United Microelectronics Corporation (UMC) reported a consolidated revenue of NT$59.13 billion for Q3 2025, reflecting a 0.6% increase from Q2 2025 but a 2.2% decrease year-over-year [2][5][6] - The company achieved a gross margin of 29.8% and a net income attributable to shareholders of NT$14.98 billion, translating to earnings per share of NT$1.20 [2][5][6] - UMC's 22nm technology platforms are gaining traction, contributing over 10% to total sales, with expectations for continued growth in 2026 [3][5] Financial Performance - Q3 2025 operating revenues were NT$59.13 billion, up from NT$58.76 billion in Q2 2025, but down from NT$60.485 billion in Q3 2024 [4][6] - Gross profit increased by 4.4% QoQ to NT$17.62 billion, while operating expenses rose by 7.8% to NT$6.97 billion [4][8] - Net income attributable to shareholders increased by 68.3% QoQ to NT$14.98 billion, with a net non-operating income of NT$3.53 billion [4][6][13] Operational Metrics - Wafer shipments increased by 3.4% QoQ to 1,000K, with a capacity utilization rate of 78% [24][25] - Revenue from 40nm and below technologies accounted for 52% of wafer revenue, while revenue from 22/28nm technologies represented 35% [5][19] - The company anticipates wafer shipments in Q4 2025 to remain flat compared to Q3 2025 [31] Regional and Customer Insights - Revenue from North America increased to 25%, while Asia Pacific decreased to 63% [17][18] - Fabless customers contributed 81% of total revenue, with the communication segment accounting for 42% of sales [21][22] Cash Flow and Capital Expenditure - Cash inflow from operating activities was NT$20.94 billion, while cash outflow from investing activities totaled NT$16.15 billion, resulting in free cash flow of NT$8.93 billion [11][12] - Capital expenditures in Q3 2025 amounted to US$399 million, with a total CAPEX budget of US$1.8 billion for 2025 [29][30] Environmental Commitment - UMC is committed to achieving net zero greenhouse gas emissions by 2050 and has received validation from the Science Based Targets initiative for its emissions reduction targets [3][37]

Group 1 - The first domestic robot equipped with the open-source HarmonyOS, named "Kua Fu," has been unveiled [1] - Nvidia plans to invest $1 billion in Nokia, focusing on AI-RAN and 6G technologies [1][2] - Nvidia has launched the NVQLink interconnection system, which integrates AI supercomputing with quantum computing [1][2] Group 2 - Yushu is set to release a new quadruped robotic dog product, with power performance approximately twice that of Go2 [1] - Tencent's Mixuan has introduced an interactive AI podcast feature, allowing listeners to "raise their hand" to ask questions [1] - OpenAI has announced the completion of its capital restructuring [1] - Microsoft has signed a new agreement with OpenAI, under which OpenAI will purchase an additional $250 billion worth of Azure services [1]

Group 1 - The core viewpoint of the reports indicates that the Server DRAM contract prices are expected to rise significantly due to the expansion of data centers by global cloud service providers (CSPs) [1] - TrendForce has revised its forecast for the fourth quarter Conventional DRAM price increase from 8%-13% to 18%-23%, with potential for further upward adjustments [1] - The report anticipates a 4% year-over-year increase in Server shipments in 2026, driven by CSPs adopting high-performance computing architectures, which will increase DRAM capacity per server [1] Group 2 - The price gap between HBM3e and DDR5 is projected to narrow significantly by 2026, with DDR5 expected to outperform HBM3e in profitability starting in the first quarter of 2026 [2] - Due to competitive capacity between HBM3e and DDR5, suppliers may increase Server DDR5 supply to strengthen their profit base [2] - The pricing strategies and capacity allocation between DDR5 and HBM will be critical variables influencing the market direction in the near future [2]