Financial Data and Key Metrics Changes - Revenue for Q2 2026 reached $1.14 billion, up 34% year-on-year, marking the best second quarter ever and the third consecutive billion-dollar quarter [5][11] - Royalty revenue hit a record $620 million, up 21% year-on-year, driven by growth across all major markets [5][12] - Licensing revenue increased by 56% to $515 million, reflecting strong demand for next-generation architectures [5][12] - Non-GAAP operating income was $467 million, up 43% year-on-year, resulting in a non-GAAP operating margin of 41.1% [15][11] - Non-GAAP EPS was $0.39, exceeding the midpoint of guidance by 6 cents [15][11] Business Line Data and Key Metrics Changes - Royalty revenue from smartphones grew significantly, driven by higher royalty rates per chip, while data center royalties doubled year-on-year due to the deployment of Arm-based chips by hyperscaler companies [12][5] - The addition of five new CSS licenses brought the total to 19 across 11 companies, indicating strong demand for compute subsystems [8][12] - CSS has become a starting point for customers building next-generation silicon, with significant interest in the newly launched Lumix CSS platform [9][12] Market Data and Key Metrics Changes - The data center market saw unprecedented compute demand, with Arm's neoverse royalties more than doubling year-on-year [5][20] - China accounted for approximately 22% of sales in Q2, with strong demand driven by licensing deals [67][68] - The mix of royalty revenues from cloud and networking is expected to increase, potentially reaching 15-20% of total royalty revenues [52][55] Company Strategy and Development Direction - The company announced a strategic partnership with Meta to enhance AI efficiency across various compute layers [6][5] - Continued investment in R&D is prioritized to meet the increasing demand for Arm technology, particularly in AI and edge computing [11][15] - The company is exploring opportunities to expand beyond its current platform into additional compute subsystems, chiplets, or complex SOCs [10][11] Management's Comments on Operating Environment and Future Outlook - Management highlighted that power has become a bottleneck in data centers, driving the need for more efficient compute platforms [19][20] - The demand for compute is expected to grow as AI workloads transition from cloud to edge devices, presenting significant opportunities for Arm [63][64] - The company remains confident in its long-term growth trajectory and strategy to enable AI everywhere [16][11] Other Important Information - Non-GAAP operating expenses were $648 million, up 31% year-on-year, reflecting strong R&D investment [15][11] - The company signed a deal to acquire Dream Big Semiconductor, which will enhance its offerings in high-speed communications [24][11] Q&A Session Summary Question: AI opportunity and data center deals - Management expressed confidence in Arm's strategic positioning for AI deals, noting that power efficiency is critical and Arm's technology is about 50% more efficient than competitors [19][20] Question: Acquisition of Dream Big Semiconductor - The acquisition aims to enhance Arm's capabilities in scale-up and scale-out networking, which is crucial for data center demands [24][11] Question: Related party revenue and SoftBank relationship - Management indicated a significant increase in related party revenue, with ongoing collaboration with SoftBank providing opportunities for technology integration in data centers [26][27] Question: OPEX and go-to-market strategies - Management acknowledged the increase in OPEX but emphasized that revenue growth is outpacing OPEX increases, ensuring a balanced approach to investment [30][31] Question: SoftBank contribution and licensing pipeline - The contribution from SoftBank was approximately $178 million, with a strong licensing pipeline expected for the remainder of the year [36][37] Question: Revenue opportunity from Stargate - Management noted that the demand for compute has grown since the Stargate announcement, with expectations for significant revenue opportunities in the coming years [44][45] Question: Lumix CSS royalty revenues - Early royalty revenues from Lumix CSS were reported, indicating faster-than-expected adoption due to existing partnerships [46][47] Question: Chip demand and implications for Arm - Management highlighted the shift from cloud to edge computing, with increasing demand for Arm's scalable solutions for AI workloads [63][64] Question: Performance in China - Strong demand in China was attributed to significant licensing deals, with licensing being a larger driver than royalties this quarter [67][68]

馬斯克是不是 又在畫餅？ 他一邊說 AI5晶片 性能比HW4 猛 40 倍 一邊又說AI5 要到 2027 年 才能量產 那2026 年 就要上路的 Cybercab 怎麼辦？ 難道要用 「過時」的 HW4 晶片？ Tesla這樣做 有兩個理由 第一 HW4 跑FSD 15 應該綽綽有餘 最重要是 它很穩定！ Tesla恐怕不敢用 剛出樣本的 AI5 去賭百萬輛車隊 的Robotaxi開局 第二是 可升級性！ 這才是 馬斯克的劇本 2026 年用成熟 穩定的 HW4 快速鋪開百萬輛 Cybercab 開始瘋狂賺錢 和收集數據 等到 2027 年 AI5產能上來了 成本也降了 特斯拉將立刻 無縫接軌 推出AI5的 增強版Cybercab 而第一批的 HW4 車隊 還能進行升級！ 這就是一魚兩吃 這不叫落後 這叫戰略！. ...

內容簡介： 🔹 🚨 特斯拉老車主注意！你的HW3/HW4愛車恐成「電子垃圾」？ Elon Musk剛發佈的AI5晶片效能預計將是HW4的5到10倍，直接讓FSD進入「端到端」野獸時代！🤯 這速度是電動車界的摩爾定律極速狂奔，但同時也是所有老車主不得不面對的「硬體通膨噩夢」。 🔹 芯片效能爆炸！馬斯克的萬億級AI天網戰略！ AI5/AI6晶片不僅是為了讓FSD跑更快，背後更藏著老馬價值萬億的宏大佈局：從Robotaxi無人計程車、Optimus機器人到MACROHARD終極模擬器，甚至想利用全球特斯拉車隊建立「分佈式AI推理網路」，打造《魔鬼終結者》裡的Skynet天網！🛸🚗 🔹 💔 HW3/HW4的殘酷真相與物理死刑！ AI5峰值功耗飆升至800W，這對舊車的散熱和電源系統是物理上的巨大挑戰！我們將深入數據分析：為什麼你的HW3/HW4愛車很可能永遠無法跑滿未來的FSD？面對這種HaaS（硬體即服務）的殘酷邏輯，你還會選擇升級FSD嗎？所有車主必看，瞭解馬斯克「晶片戰略圖」背後的真實代價！💰🔥 🔹 點讚訂閱「大魚聊電動」，不錯過所有關於特斯拉與AI時代的最即時、最準確資訊！👍 #特斯拉 #馬斯克 #Musk ...

RT Elon Musk (@elonmusk)Just finished a long AI5 design review with the Tesla California and Texas chip engineers. It’s going to be great.And AI6 and AI7 will follow in fast succession.AI8 will be out of this world. ...

Just finished a long AI5 design review with the Tesla California and Texas chip engineers. It’s going to be great.And AI6 and AI7 will follow in fast succession.AI8 will be out of this world. ...

Core Insights - Tesla's shares fell 5% following the announcement of third-quarter earnings, despite achieving record sales [1][2] - The company reported revenues of $28.09 billion, exceeding Wall Street's expectations, but profits decreased significantly [2][5] Financial Performance - Tesla's third-quarter revenues were $28.09 billion, surpassing estimates of $26.5 billion and reflecting a 24.8% increase from the previous quarter [2] - Earnings per share were $0.50, below the expected $0.56, and profits totaled $1.4 billion, marking a 37% decline from the same period last year [2] Market Context - The decline in profits coincided with the expiration of a $7,500 federal tax credit for electric vehicles, which may impact future sales [5] - Tesla delivered over 497,000 vehicles in the third quarter, the highest number on record for the company [5] Strategic Focus - During the earnings call, CEO Elon Musk emphasized Tesla's advancements in AI and the development of the humanoid robot, Optimus, rather than addressing shareholder concerns about new car models and the impact of the tax credit expiration [3] - Musk indicated that Tesla's AI chip, AI5, would be produced by Samsung and TSMC, and reaffirmed that the company would continue using Nvidia's chips for model training [3] Leadership and Governance - Musk criticized shareholder advisory firms that opposed his $1 trillion pay package, labeling them as "corporate terrorists" [3] - Despite the controversies, Musk's wealth is estimated at $487.5 billion, having recently surpassed the $500 billion mark [4]

Tesla Inc. Chief Executive Officer Elon Musk said that Samsung Electronics Co. is taking a bigger role in manufacturing the carmaker’s chips, signaling that the South Korean company is making inroads in a market dominated by Taiwan Semiconductor Manufacturing Co. Musk told investors on a conference call that Samsung will share manufacturing duties for the company’s in-development artificial intelligence chip, the AI5. That’s something he’d previously indicated would be produced by TSMC, the largest provider ...

Core Viewpoint - Tesla's Q3 2025 report highlights record electric vehicle deliveries and energy storage installations, showcasing strong performance amid increasing market competition [4][5][6]. Production and Deliveries - In Q3 2025, Tesla produced over 447,450 electric vehicles and delivered over 497,099, with a year-on-year delivery growth of 7.3%, surpassing market expectations [6][7]. - The Model Y and Model 3 combined deliveries reached 481,166 units, reflecting a 9.4% year-on-year increase, with the Shanghai Gigafactory contributing significantly to this growth [7][8]. Energy Storage Business - Tesla's energy storage business achieved a record installation of 12.5 GWh in Q3 2025, driven by the capacity release from the Shanghai energy storage factory [8][9]. Product Innovations - Tesla introduced significant upgrades to its core products, including the Model Y and Model 3, enhancing their battery technology and extending their range capabilities [11][12]. - The launch of the Robotaxi service in Austin, Texas, marks a significant expansion of Tesla's autonomous driving initiatives [12][13]. Market Position and Competition - Despite fierce competition in the automotive market, particularly in China, Tesla continues to leverage its strong product capabilities to maintain a competitive edge [16][17]. - In September 2025, Tesla achieved a weekly sales record of 19,300 units in China, with the Model Y and the newly launched Model Y L leading the sales [17][18]. Future Outlook - Tesla is expected to expand its product lineup further in Q4 2025, with the anticipated launch of the Model Y Youth version, aimed at capturing more market share in the affordable segment [19][20]. - With Elon Musk's full return, Tesla is poised for significant advancements in electric vehicle deliveries and energy business, alongside a strong market performance reflected in its stock price reaching $450 and a market capitalization of $1.5 trillion [20].

Group 1 - OpenAI's significant capital expenditure has led to a surge in Oracle's remaining performance obligations (RPO) to $455 billion, resulting in a 36% increase in its stock price [2] - The AI-driven growth has sparked a "arms race" mentality in the market, with major tech companies like Broadcom and Google also benefiting from this trend [2] - Tesla is transforming from an electric vehicle company to an AI-driven technology company, with developments in robotics and autonomous driving capturing market interest [2] Group 2 - The current enthusiasm in the AI sector is described as a bubble, but it is viewed as a necessary phase for market experimentation and innovation [3] - The AI "arms race" is characterized as a technological leap rather than a simple continuation of existing economic structures, requiring new designs and tools to meet emerging demands [4][5] - The existing economic ecosystem must be re-evaluated based on fundamental principles to enhance capabilities, as demonstrated by Tesla's supply chain innovations [5] Group 3 - The competition in the AI era transcends geographical boundaries, necessitating a clear definition of demand and a supportive regulatory environment for entrepreneurial innovation [6] - The AI arms race is not just about computational power and data but fundamentally about the clarity of demand description, which requires institutional support for entrepreneurial freedom [6] - Acknowledging the need for a respectful and responsive competitive order is essential for fostering innovation in the AI sector [6]

Group 1 - The core viewpoint emphasizes that the recent massive capital expenditure by OpenAI has ignited enthusiasm for AI-driven growth, significantly impacting companies like Oracle, which saw its remaining performance obligations (RPO) surge to $455 billion, leading to a 36% stock price increase [1] - The AI-driven growth is described as a "arms race," with various tech giants like Broadcom and Google positioned to benefit from this trend [1] - Tesla is highlighted as transforming from an electric vehicle company to an AI-driven innovation company, with significant developments in robotics and autonomous driving technology [1] Group 2 - The article discusses the perception of a bubble in the AI sector, suggesting that market enthusiasm, while potentially bubble-like, serves as a ticket to the unknown, allowing for trial and error among participants [2] - It is noted that the journey towards AI is not merely a continuation of existing economic structures but requires new designs and tools to meet emerging demands [3] - The need for a clear understanding of AI as a technological leap rather than a continuous function is emphasized, indicating that existing economic ecosystems must evolve based on fundamental principles [3] Group 3 - The article stresses the importance of creating an environment that fosters individual creativity and innovation, advocating for reduced market entry barriers and fair competition [4] - It highlights that AI competition transcends geographical boundaries, necessitating a reevaluation of regulatory frameworks to manage the complexities introduced by AI and Web 3.0 [4][5] - The core competitive focus in the AI arms race is on the clear definition and description of demand, which requires a supportive institutional framework for entrepreneurial freedom [5] Group 4 - The competition in the AI arms race is characterized as not just a battle for computational power and data but also a cognitive transformation that requires a respectful and responsive competitive order for entrepreneurs [6]