TE Connectivity logo 3 Stocks Quietly Leveraging AI While Everyone Chases NVIDIA TE Connectivity (NYSE:TEL) reported first-quarter fiscal 2026 results that management said reinforced the long-term strategy and growth framework it outlined at its Investor Day last quarter, pointing to broad-based demand tied to rising needs for data and power connectivity. The company posted double-digit growth in both operating segments, record quarterly orders, and record adjusted profitability, while raising its exp ...

Financial Data and Key Metrics Changes - The company reported first-quarter sales of $4.7 billion, representing a 22% increase on a reported basis and a 15% increase organically year over year [7][20] - Adjusted earnings per share (EPS) reached a record of $2.72, up over 30% compared to the previous year [8][20] - Adjusted operating margins improved to 22%, an increase of 180 basis points year over year [8][20] - Free cash flow exceeded $600 million, with 100% returned to shareholders [8][20] Business Line Data and Key Metrics Changes - Industrial Solutions segment sales grew 38% year over year, with a 26% organic increase [11] - Digital Data Networks (DDN) experienced a remarkable 70% growth year over year, driven by strong AI revenue expectations [12] - Transportation Solutions segment sales increased by 10%, with organic growth of 7% year over year [15] Market Data and Key Metrics Changes - Orders increased to a record level of over $5 billion, reflecting a growth of more than $1 billion compared to the prior year [5][9] - Double-digit organic order growth was observed in all regions year over year [9] - The company expects global auto production to be approximately 88 million units for fiscal 2026, slightly down from the previous year [16][78] Company Strategy and Development Direction - The company is focusing on broadening growth drivers to capitalize on secular trends in data and power connectivity [4] - Investments in co-creation engineering models and global supply chain enhancements are expected to drive value for customers [4] - The long-term target is to achieve six to eight points of annual average growth, with expectations to exceed this in fiscal 2026 [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver growth ahead of the long-term target, supported by strong order momentum [7][21] - The company is experiencing ongoing macroeconomic challenges but continues to execute well, achieving record adjusted operating margins [6][21] - Management highlighted the importance of AI and data connectivity as key growth drivers for the future [10] Other Important Information - The company plans to increase capital expenditures to support the growing pipeline of customer awards for AI programs, expecting CapEx to be closer to 6% of sales this year [20] - The adjusted effective tax rate for Q1 was approximately 22%, with expectations to remain at this level for Q2 [19] Q&A Session Summary Question: AI revenue forecast increase - Management confirmed an increase in AI revenue expectations by $200 million compared to previous forecasts, driven by new program awards and strong customer demand [28][29] Question: Order trends and revenue implications - Management noted that orders were up significantly, with strong growth across various segments, but acknowledged a typical seasonal decline in auto production affecting revenue guidance [34][36] Question: Drivers of AI revenue uptick - The increase in AI revenue expectations is attributed to new program awards and existing programs performing better than anticipated [40][42] Question: Supply chain tightness and inflation - Management indicated that while there is inflation in metal-related components, they are able to procure necessary materials and pass costs through to customers [62][71] Question: Commercial transportation outlook - Management acknowledged that while last year's first quarter was an easier comparison, they expect continued growth in commercial transportation driven by improvements in markets outside North America [66][68] Question: EPS guidance and operating income items - Management explained that the slight decrease in EPS guidance is due to tax and higher interest expenses, but they remain confident in maintaining strong incremental margins [69][70]

Group 1 - The article discusses the proposed adjustments for convertible bonds, specifically mentioning Hongchuan Convertible Bond and Fangyuan Convertible Bond, which are set for adjustments on January 22, 2026 [2][7]. - It provides detailed information on various convertible bonds, including their current prices, redemption prices, last trading dates, last conversion dates, conversion values, remaining scales, and the proportion of convertible bonds to the underlying stocks [4][6]. - Notable convertible bonds include HuGong Convertible Bond with a current price of 135.022 and a conversion value of 135.94, and YingTe Convertible Bond with a current price of 152.147 and a conversion value of 152.47 [4]. Group 2 - The article highlights several companies planning to reduce their shareholdings, including Hengshuai Co., Ltd. with a maximum reduction of 2.83%, and Jingrui Electric Materials with a maximum reduction of 2% [7]. - It mentions Jingke Energy's projected loss for 2025, estimated between 5.9 billion to 6.9 billion yuan [7]. - The article also notes the upcoming issuance of Longjian Convertible Bond and Aiwei Convertible Bond, as well as the listing of Guoliang New Materials [7].

Q1 2026 Performance Highlights - Sales reached $4.7 billion, a 22% increase reported and a 15% increase on an organic basis year-over-year[7] - Orders hit a record $5.1 billion, up 28% year-over-year and 9% sequentially, resulting in a book-to-bill ratio of 1.1[7] - Adjusted operating margins expanded by 180 basis points year-over-year to 22%, driven by strong operational performance[7] - Adjusted EPS increased by 33% year-over-year to $2.72[7] - Strong free cash flow generation of $608 million, with approximately 100% returned to shareholders[7] Q2 2026 Guidance - Expect sales of approximately $4.7 billion, representing a 13% increase reported and a 6% increase organically year-over-year[7] - Adjusted EPS is projected to be around $2.65, a 20% increase year-over-year[7] Segment Performance - Industrial Solutions (Q1 2026) - Sales were $2.202 billion, up 38% reported and 26% organically[13] - Adjusted operating margin expanded by 520 basis points to 23.3%[13] - Digital Data Networks (DDN) sales increased by 71% reported and 70% organically[15] Segment Performance - Transportation Solutions (Q1 2026) - Sales were $2.467 billion, up 10% reported and 7% organically[18] - Adjusted operating margin was 21.2%[18] - Automotive sales increased by 10% reported and 7% organically[18]

（文章来源：21世纪经济报道） 1月20日，广东省制造业赋能对接系列活动（手机行业专场）暨广东省电子信息产业发展大会在东莞举 办。现场汇聚近千人，多家企业展示了最新产品，精准对接电子信息产业上下游企业。 ...

21世纪经济报道记者 易妍君 又到公募基金季报披露期，2025年度绩优AI主题基金的调仓动向受到市场关注。 结合目前已披露的2025年基金四季报看，报告期内，部分绩优基金已对所持AI资产进行了较大幅度的调整。 例如，相较2025年三季度末（下同），2025年度主动权益基金业绩冠军永赢科技智选新进重仓了东山精密、景旺电子、工业富联、剑桥科技；同时，进一步 增持沪电股份、深南电路、生益科技等PCB龙头，并减持了中际旭创。另一只"翻倍基"中欧数字经济增加了国产AI和AI基础设施配置，优化智能机器人个股 选择，并减仓了智能驾驶和端侧AI。 另外，21世纪经济报道记者注意到，一些在2025年四季度大幅买入AI应用概念股的主动权益基金，由于踩上了风口在2026年开年即迎来净值大涨。 在此背景下，公募基金经理对2026年AI领域投资机会的预判已有分歧。 调整持仓结构 此外，绩优基金的共识主要体现在PCB板块。 例如，在2025年四季度，永赢科技智选、前海开源沪港深乐享生活、安信新回报、中欧数字经济等产品均新进重仓了东山精密；同时，中欧数字经济、交银 优择回报分别新进重仓了深南电路，永赢科技智选亦增持了该个股；而生益科技则获 ...

Core Viewpoint - The surge in prices of memory and storage hardware, driven by the explosive growth of AI technology, has led to significant market disruptions, with some products' prices reaching levels comparable to real estate in major cities [2][4]. Group 1: Price Surge and Market Impact - The price of a single 256G DDR5 server memory stick has approached 60,000 yuan, with a box of 100 sticks costing nearly 6 million yuan, equivalent to the price of a house in certain cities [2][4]. - Prices for memory products, including DDR4 and DDR5, have reportedly increased by three to four times over the past two months, with SSD prices also nearly doubling [3][4]. - The consumer market is feeling the impact, with users reporting significant price increases for memory sticks, such as a 16G DDR5 stick rising from 100 yuan to over 600 yuan [3][4]. Group 2: AI Demand and Hardware Requirements - The current surge in server memory prices is attributed to a historic upward cycle in the global server memory market, with DDR5 prices increasing over 300% since September 2025 [4][6]. - AI's demand for hardware has shifted from training to inference, requiring higher memory capacities and bandwidth, which has transformed memory into a critical resource for AI systems [6][10]. - AI servers require 8 to 10 times more memory than standard servers, leading to a prioritization of high-end production for AI applications, while traditional consumer electronics face significant pressure [6][10]. Group 3: Industry Dynamics and Future Outlook - The structural changes in demand are redistributing value and risk across the supply chain, with profits concentrating upstream and risks accumulating downstream [7][10]. - The high prices are creating a divide in the industry, where large AI companies can absorb costs while smaller firms struggle, accelerating internal industry differentiation [7][10]. - The price surge driven by AI demand is expected to continue until the end of 2026, with key indicators for a turning point including inventory turnover rates and advancements in production capabilities [9][10]. Group 4: Strategic Responses and Industry Evolution - Companies are advised to focus on "technical throttling" and "organizational open-source" strategies to mitigate costs, such as optimizing inference efficiency and building shared computing resources [9][10]. - Chinese storage companies like Changxin Storage are positioned to capitalize on the global supply chain shift, aiming to increase production capacity significantly by 2026 [10]. - The memory market is evolving into a critical component of AI infrastructure, with the potential for significant technological and market shifts as companies strive for efficiency and innovation [10].

TE reports fiscal first-quarter earnings per share of $2.72 on sales of $4.7 billion. Wall Street was looking for EPS of $2.54 from sales of $4.5 billion. ...

Group 1 - The article discusses the recent policy measures issued by Guangdong province aimed at promoting high-quality development in transportation through artificial intelligence [4][5] - The policy encourages enterprises to focus on core technology breakthroughs and innovation in areas such as end-to-end remote driving, intelligent decision-making, and precise prediction and control [4][5] - The initiative aims to create high-quality data sets, toolchains, and algorithm libraries to facilitate the application of large models in autonomous driving [4][5] Group 2 - The article lists various companies involved in the development of key technologies related to autonomous driving, including 威帝股份, 凯众股份, and 大华股份 [6] - It highlights the importance of advanced systems such as steer-by-wire systems, vehicle-mounted cameras, and heads-up displays (HUD) in the context of intelligent driving [6]

Core Insights - The 2026 report of the Top 100 Global Innovators highlights a shift in innovation leadership from scale to precision, with artificial intelligence (AI) playing a crucial role in this transformation [1][2][3] Group 1: Innovation Leadership - The Top 100 Global Innovators contribute 16% of the world's strongest AI inventions, emphasizing that leadership is defined by quality and strategic intent rather than just volume [3] - Recognition as a Top 100 Global Innovator is a significant achievement, with 16 organizations being all-time recipients, indicating sustained excellence in innovation [3][6] Group 2: AI Impact - AI-related patent activity has surged, with filings doubling repeatedly since 2019, leading to over one million invention specifications published by mid-2025 [3] - Generative AI and deep learning are identified as the fastest-moving frontiers in technology, reshaping the landscape of innovation [3] Group 3: Geographic Distribution - Japan leads the global innovation landscape with 32 organizations, including five in the top 10, followed by Mainland China and South Korea with two each, and the United States with one [4] - The United States has 18 organizations in the Top 100, while Taiwan has 12, and both Germany and South Korea have eight [4] Group 4: New and Returning Innovators - Samsung Electronics retains its position as the 1 ranked global innovator, while six companies are recognized for the first time in the Top 100 [6] - Six companies have re-entered the Top 100, including Apple and Saudi Aramco, while 16 all-time recipients maintained their status [6]