Core Insights - AMD's CEO Lisa Su and her executive team visited Lenovo's global headquarters in Beijing, showcasing Lenovo's latest products and technologies, including humanoid robots [1] - This visit is part of an ongoing relationship between AMD and Lenovo, which began with a collaboration announcement in the AI PC sector and further cooperation in AI server solutions [3] - Lenovo is also strengthening its relationship with NVIDIA, having recently visited NVIDIA's headquarters to discuss AI infrastructure and enterprise-level computing solutions [3] - Lenovo will host a technology innovation conference on January 6, 2026, in Las Vegas, where it will unveil its latest AI products and hybrid AI strategy, with notable attendees including NVIDIA's CEO Jensen Huang and AMD's Lisa Su [3] Group 1 - AMD's CEO Lisa Su visited Lenovo's headquarters, indicating a strong partnership [1] - The collaboration between AMD and Lenovo focuses on AI PC and server solutions [3] - Lenovo is also engaging with NVIDIA for AI infrastructure discussions [3] Group 2 - Lenovo's upcoming technology innovation conference will highlight its AI advancements [3] - Key industry leaders, including AMD and NVIDIA executives, will participate in the conference [3]

Core Insights - The AI industry is rapidly evolving, with a consensus forming that by 2026, the performance iteration of large models will stabilize, allowing companies to focus on productization of large models [1] - Lenovo has launched the "AI Factory" solution and new high-end AI servers, aiming to inject strong momentum into China's AI industry for high-quality development [3][10] Industry Developments - Lenovo's "AI Factory" solution aims to transform traditional data centers into efficient AI factories, utilizing customer data as raw materials to produce intelligent models and services [10][11] - The launch of Lenovo's "万全异构智算平台4.0" addresses the diverse computing power needs in China, enabling efficient collaboration among different brands of CPUs and GPUs [6][12] Technological Innovations - The new platform has achieved significant performance improvements, including a 35% reduction in pre-training time and a 50% reduction in post-training time, along with a 60% increase in bandwidth utilization for inference scenarios [6] - Lenovo's WA8080a G5 server features a 10U chassis design to support GPUs with power consumption exceeding 1000 watts, addressing the rapid evolution of GPU technology [9] Strategic Positioning - Lenovo's approach emphasizes a complete ecosystem, integrating hardware and software to overcome the challenges of heterogeneous computing power in China [12] - The company aims to provide a comprehensive service system that addresses various client needs, from data governance to AI production management [11]

Group 1: HP Inc. - HP has a history of increasing dividends for nine consecutive years, with the latest quarterly payout raised from $0.2894 to $0.30, resulting in an annual figure of $1.20 per share [3] - The current dividend yield for HP is 4.93% [3] - HP's annual revenue as of July 31 is reported at $54.71 billion, with Q4 2025 revenues of $14.64 billion, slightly below the consensus estimate of $14.70 billion, while EPS of $0.93 exceeded the consensus of $0.92 [3] Group 2: Black Hills Corp. - Black Hills has increased its dividends for 55 consecutive years, with the most recent quarterly payout raised from $0.65 to $0.676 per share, equating to an annual figure of $2.70 per share [5] - The current dividend yield for Black Hills stands at 3.76% [5] - The company's annual revenue as of September 30 is $2.27 billion, with Q3 2025 revenues of $430.20 million, which missed the consensus estimate of $440.96 million, while EPS of $0.45 surpassed the consensus of $0.42 [6] Group 3: First Merchants Corp. - First Merchants is a financial holding company that owns First Merchants Bank, providing various financial services including commercial and consumer banking, wealth management, and mortgage lending [7]

HP Inc. (HPQ) - HP shares fell nearly 6% after announcing a weaker-than-expected forecast and plans to cut up to 6,000 jobs [3] - For the first quarter of the next fiscal year, HP expects adjusted earnings between $0.73 and $0.81 per share, with a midpoint of $0.77, slightly below the $0.78 estimate [3] - Despite the weak guidance, HP reported better-than-expected results for the period ending October 31, earning an adjusted $0.93 per share with revenue rising 4.2% year-over-year to $14.64 billion, surpassing analyst expectations of $0.92 per share and $14.53 billion in revenue [4] - HP's CFO stated that the company is taking decisive actions to mitigate cost headwinds and is investing in AI-enabled initiatives to enhance product innovation and customer satisfaction [5] Drug Pricing Negotiations - The Trump administration negotiated a 71% discount on Ozempic and Wegovy for Medicare patients, reducing the price from $959 to $274 for a 30-day supply [6][7] - These price reductions are part of Medicare's drug price negotiation program, expected to save taxpayers $12 billion [7] Foxconn Technology - Foxconn received approval to invest an additional $569 million in Wisconsin to meet the growing demand for AI infrastructure, which will create 1,374 new jobs over the next four years [8][9] - Wisconsin accounts for nearly a quarter of Foxconn's workforce in the U.S., and this investment will double its presence in the state by the end of the decade [9]

Group 1 - Analysts have an average price target of $1,344.19 on NFLX [1] - Piper Sandler has initiated an overweight rating on Dell (NYSE: DELL) [1]

Core Insights - The U.S. stock market appears calm with the VIX at around 16, but significant uncertainties remain [1][2] - Ongoing U.S. government shutdown risks and recent Federal Reserve interest rate cuts create a complex market environment [2] - Risk-averse investors may prefer ETFs over individual stocks to mitigate potential losses from company-specific issues [3][4] ETF Advantages - ETFs provide instant diversification, spreading risk across multiple stocks, which helps moderate volatility [5] - They combine diversification with liquidity and transparency, allowing for quick adjustments to market conditions [5] - Sector-specific ETFs enable cautious investors to engage in market gains while limiting exposure to individual company risks [6] Attractive Sectors for Q4 - The Technology sector remains appealing for capital appreciation despite challenges from high interest rates [7] - The Utilities sector offers stability and reliable dividends, making it a classic defensive investment [8] - Financial stocks may benefit from rate cuts, potentially enhancing lending activity and net interest margins [8] Top ETFs to Consider - **Technology Select Sector SPDR ETF (XLK)**: Focuses on tech industries with top holdings in Nvidia (14.86%), Microsoft (12.57%), and Apple (12.33%); gained 22.4% year-to-date [10][11] - **Utilities Select Sector SPDR ETF (XLU)**: Includes electric and water utilities with top holdings in NextEra Energy (11.58%) and The Southern Company (7.77%); surged 16.4% year-to-date [12][13] - **Financial Select Sector SPDR ETF (XLF)**: Covers financial services with top holdings in Berkshire Hathaway (11.92%), JP Morgan Chase (11.21%), and Visa (7.50%); increased 10.5% year-to-date [14]

Core Viewpoint - HP's recent earnings report shows mixed results, with earnings per share meeting estimates but revenues slightly missing expectations, leading to a decline in share price over the past month [1][2]. Financial Performance - HP reported Q3 fiscal 2025 earnings of 75 cents per share, matching the Zacks Consensus Estimate, but down from 84 cents per share a year ago [2]. - Revenues for the quarter were $13.93 billion, missing the Zacks Consensus Estimate by 0.19%, and up from $13.52 billion year-over-year [2]. Segment Performance - Personal Systems (PS) revenues, accounting for 71% of net revenues, were $9.9 billion, reflecting a 6% year-over-year increase [3]. - The Printing business, making up 29% of net revenues, generated $4.0 billion, down 4% year-over-year, primarily due to declines in Supplies and Commercial Printing [4]. Geographic Performance - Revenue growth was observed in all regions, with the Americas and EMEA both rising 1.1%, and Asia Pacific & Japan growing 11% year-over-year on a constant currency basis [5]. Operating Margins - The non-GAAP operating margin for Personal Systems was 5.4%, down 120 basis points year-over-year, while the Printing division maintained a non-GAAP operating margin of 17.3% [6]. Cash Flow and Balance Sheet - HP ended the fiscal third quarter with cash and cash equivalents of $2.9 billion, up from $2.7 billion in the previous quarter, and generated $1.66 billion from operating activities [7]. - The company returned $400 million to shareholders through dividends and share repurchases during the quarter [8]. Future Guidance - For Q4 fiscal 2025, HP expects non-GAAP EPS between 87 cents and 97 cents, with anticipated free cash flow for fiscal 2025 in the range of $2.6 billion to $3.0 billion [9]. Market Sentiment - Since the earnings release, estimates have remained flat, indicating a stable outlook from investors [10]. - HP holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return from the stock in the coming months [12].

Financial Data and Key Metrics Changes - Top line revenue increased by 3% year over year, driven by strong performance in Personal Systems [7] - Non-GAAP EPS was slightly above the midpoint of guidance, reflecting a sequential improvement of 6% [7][26] - Gross margin was 20.5%, down year over year due to a higher mix from Personal Systems and increased trade-related costs [26] Business Line Performance - Personal Systems revenue grew by 6% year over year, with a 5% unit growth and increased average selling prices (ASPs) [28] - Print revenue declined by 4% year over year, or 3% in constant currency, with market-driven hardware declines in both consumer and commercial segments [30] - Strong performance in key growth areas, including double-digit growth in consumer subscriptions and industrial graphics [30][15] Market Data and Key Metrics Changes - In constant currency, Americas and EMEA each grew by 1%, while APJ was up 11%, particularly strong in China [26] - The installed base of active AIPC users is growing significantly, positioning the company well for future AI-driven innovations [11] Company Strategy and Industry Competition - The company is focused on becoming a leader in the future of work, with a strategy that includes manufacturing diversification and cost reduction [8][22] - The company is shifting its mix to higher value segments, such as AIPCs and commercial premium, while maintaining discipline in pricing [10][12] - The print market is expected to decline in low single digits in 2025, but the company aims to protect the operating profit contribution of the premium business [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the PC market in 2025, expecting mid-single-digit growth in the second half [21] - The company is adapting to a dynamic environment and has strengthened operational agility to navigate evolving conditions [23] - Management acknowledged continued uncertainty in the global trade environment but remains confident in the ability to respond quickly to changes [23] Other Important Information - The company is on track to achieve $2 billion in annualized gross run rate savings by the end of fiscal year 2025 [8][32] - The company returned over $400 million to shareholders through dividends and share repurchases [33] Q&A Session Summary Question: Impact of tariff-related costs in the quarter - Management indicated that they were able to mitigate the majority of tariff costs in Q3 through supply chain optimization and pricing actions [40][42] Question: Outlook for the print business amid return to office initiatives - Management noted that while there is short-term softness in hardware sales, the demand for printed pages remains stable, indicating a potential recovery in the future [46][47] Question: AIPC pricing and margin profile - Management confirmed that AIPCs carry a higher ASP and margin profile compared to non-AIPCs, with a price increase of 5% to 10% driven by AIPC capabilities [49] Question: Expectations for print pricing and office environment - Management expects aggressive pricing competition to continue, but remains confident in the long-term demand for print as the number of pages printed has not deviated from expectations [78] Question: Capital allocation and leverage - Management indicated that leverage improved to slightly over 2 times, and they anticipate returning 100% of free cash flow to shareholders as leverage continues to improve [80]

Core Viewpoint - HP Inc. is expected to report its third-quarter fiscal 2025 results on August 27, with projected revenues of $13.96 billion, indicating a 3.3% year-over-year increase [1][10] Revenue and Earnings Estimates - The Zacks Consensus Estimate for HP's non-GAAP earnings per share (EPS) is between 68 cents and 80 cents, with a midpoint of 74 cents, reflecting a 9.6% decline from the previous year's EPS of 83 cents [2][10] - The consensus estimate for revenues is set at $13.96 billion, suggesting a 3.3% improvement from the prior-year quarter [1][10] Segment Performance - The Personal Systems segment is anticipated to show sales of $9.99 billion, representing a year-over-year growth of 6.7%, driven by AI PC product launches and gaming growth [4][10] - The Printing division's sales are projected to decline by 4.6% to $3.95 billion, impacted by weakened consumer demand in China and macroeconomic pressures [8][10] Influencing Factors - Continued momentum in the Personal Systems segment, particularly in AI PCs, is expected to enhance top-line growth and improve margins [4][5] - The introduction of new gaming products is likely to contribute positively to HP's sales performance [6] - Macroeconomic challenges, including high interest rates and inflation, are anticipated to negatively affect demand for consumer PCs and commercial sales [7] Earnings Prediction Insights - Current analysis does not predict a definitive earnings beat for HP, as the combination of a positive Earnings ESP and Zacks Rank does not align favorably [9][11]

Core Viewpoint - The Technology Select Sector SPDR ETF (XLK) is a passively managed ETF that provides broad exposure to the Technology - Broad segment of the equity market, making it a suitable option for long-term investors due to its low costs and transparency [1][2]. Group 1: ETF Overview - XLK was launched on December 16, 1998, and is designed to match the performance of the Technology Select Sector Index [1]. - The fund is sponsored by State Street Investment Management and has over $83.43 billion in assets, making it the largest ETF in its category [3]. - The ETF includes companies from various technology-related industries, such as computers, software, telecommunications, and semiconductors [4]. Group 2: Costs and Performance - The annual operating expenses for XLK are 0.08%, which is considered low in the ETF space, and it has a 12-month trailing dividend yield of 0.59% [5]. - As of August 5, 2025, XLK has gained approximately 13.14% year-to-date and 28.88% over the past year, with a trading range between $179.73 and $264.68 during the last 52 weeks [8]. Group 3: Holdings and Risk - The ETF has a 100% allocation in the Information Technology sector, with Nvidia Corp (NVDA) making up about 15.12% of total assets, followed by Microsoft Corp (MSFT) and Apple Inc (AAPL) [6]. - The top 10 holdings account for approximately 62.78% of total assets under management [7]. - XLK has a beta of 1.23 and a standard deviation of 24.73% over the trailing three-year period, indicating a medium risk profile [8]. Group 4: Alternatives - XLK holds a Zacks ETF Rank of 1 (Strong Buy), indicating strong expected returns and favorable metrics [9]. - Other ETFs in the technology space include iShares U.S. Technology ETF (IYW) and Vanguard Information Technology ETF (VGT), with respective assets of $22.63 billion and $97.70 billion [11].