Financial Data and Key Metrics Changes - In Q3 2025, the company's revenue grew by 13% year-on-year, reaching $1.3 billion, driven primarily by strong demand for AI products [3][5] - The gross profit margin reached a record high of 23.5%, contributing to an increase in annual gross margins [3] - The expense-to-sale ratio increased to 16.4% during this quarter, reflecting higher operational costs [3] Business Line Data and Key Metrics Changes - The cloud data center segment revenue increased by 33% year-on-year, driven by high-speed and high-voltage AI connectivity solutions [5][6] - The auto mobility segment achieved 116% year-on-year growth, despite challenges in the automobile sector [6] - The consumer interconnect segment remained flat but outperformed prior guidance due to flexible responses to customer needs [5][6] Market Data and Key Metrics Changes - The smartphone segment experienced a 20% decline, consistent with guidance, due to ongoing market challenges [5][8] - The company anticipates a high teens year-on-year decline in the smartphone segment for Q4 2025 [8] - The overall micro-conditions are expected to slow down, leading to a flat outlook in the consumer interconnect segment for Q4 [9] Company Strategy and Development Direction - The company maintained its revenue outlook for the full year, projecting a high single-digit increase while keeping the gross margin around 20% [7] - The focus is on reallocating resources to support new certifications, product launches, and regional expansion [7] - The company is shifting its focus toward expanding the AI-related portion of its business portfolio following the successful execution of its 3+3 strategy [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent low double-digit growth in operating profit for the full year, despite near-term operating margin pressures [8] - The company expects enduring market dynamics to play a significant role in the upcoming year, particularly in the AI infrastructure sector [8][9] - Management noted that the expected decline in the RF category is mainly due to cancellations in the Terra heat pump division [9] Other Important Information - The company signed a strategic MOU with Al-Basami Transport Group to collaborate on EV charger installations across logistics hubs [12] - The company showcased its AI solutions at various industry events, highlighting its strong ecosystem collaboration and engineering excellence [13][14] Q&A Session Summary Question: Progress in backplane connector developments - Management did not comment on individual products but noted that existing solutions are gaining recognition due to strong technical capabilities [15][16] Question: Impact of competitors bypassing patent restrictions - Management refrained from commenting on specific competitors but emphasized the importance of reliability and integration in high-speed interconnect areas [17] Question: Customer orders for AI-related high-power products - Management indicated that market share for existing power products is steadily increasing, with new high-voltage solutions introduced [18] Question: Customer adoption of new power products - Management reported that power-related products have been certified by major global customers and are shipping steadily [19] Question: Sustainability of AI segment growth - Management noted that strong growth is driven by new project ramp-ups and rising consumer demand, with AI applications expected to be a key growth catalyst [21] Question: Backplane connector market competition - Management highlighted vertical integration as a key advantage in maintaining leadership in the backplane connector market [26] Question: Investment in new applications like robotics - Management acknowledged the emerging area of robotics and indicated ongoing exploration of new technologies and partnerships [28] Question: Revenue performance benchmarking against group companies - Management stated that direct comparisons are complex due to differing delivery schedules and stocking levels [31] Question: Plans for investment in the U.S. - Management confirmed an operational presence in the U.S. and openness to further investments aligned with customer needs [32] Question: Impact of higher memory prices on consumer electronics demand - Management reported no pricing pressures from higher memory costs so far [34] Question: Reason for lack of growth in operating cash flow - Management attributed this to product launch readiness and adjustments in production facilities [42]

Core Insights - The Russell 1000 Index experienced a strong performance in Q3, closing up approximately 7%, although the average stock returned about 4%, indicating that gains were concentrated among a few high-performing stocks [1]. Top Performers - Four stocks in the Russell 1000 achieved gains exceeding 100% during the quarter, highlighting significant outperformance [2]. - Sandisk Corp. (NASDAQ:SNDK) saw a remarkable 150% increase, benefiting from its position as a major supplier of NAND flash memory semiconductors and strong AI demand [4]. - Astera Labs, Inc. (NASDAQ:ALAB) surged 111% due to a 149.5% year-over-year revenue growth to $191.93 million and high demand for AI connectivity solutions [4]. - Applovin Corp. (NASDAQ:APP) posted a 102% gain, driven by favorable sector-wide trends [4]. - MP Materials Corp. (NYSE:MP) benefited from a $400 million investment from the Trump administration and a $500 million supply agreement with Apple, Inc. (NASDAQ:AAPL) [4]. - Western Digital Corp. (NASDAQ:WDC) experienced an 84% surge, capitalizing on data center build-out trends [4]. - QuantumScape Corp. (NYSE:QS) saw significant returns driven by retail investor interest and optimism regarding its solid-state battery technology [4]. - Ciena Corp. (NYSE:CIEN) rose due to increased demand for AI-driven networking solutions and investments from major cloud providers [4]. - Wayfair, Inc. (NYSE:W) gained 70% in Q3, attributed to strategic advancements in ecommerce and retail technology [4].