Summary of Nova (NasdaqGS:NVMI) FY Conference Call - January 14, 2026 Company Overview - **Company**: Nova (NasdaqGS:NVMI) - **Event**: 28th Annual Needham Growth Conference - **Key Speaker**: Guy Kizner, CFO Industry Insights - **Semiconductor Industry Growth**: The semiconductor industry is expected to reach $1 trillion in revenues by 2026, driven by demand from AI, data centers, automotive, and industrial sectors [4][5] - **Investment Trends**: Customers are making long-term capacity investments, particularly in advanced nodes and memory, with a focus on DRAM and advanced packaging [3][5] Financial Performance and Projections - **2026 Outlook**: Nova anticipates a growth year in 2026, with a second-half weighting due to project timing rather than demand [3][5] - **Revenue Target**: The company is on track to meet its $500 million cumulative revenue target from Gate-All-Around technology by 2026 [8] - **Advanced Packaging Growth**: Advanced packaging revenue is projected to grow from 10% in 2023 to around 20% in 2026, driven by both inorganic acquisitions and organic product adjustments [12][14] Market Segments - **Leading Edge Logic**: The transition from FinFET to Gate-All-Around is enhancing Nova's position in metrology, with significant growth expected from major players like TSMC, Intel, Samsung, and Rapidus [7][9] - **Memory Market**: DRAM is a key growth driver, with Nova well-positioned among top spenders. However, the NAND market is currently focused on upgrades rather than capacity expansions [15][16][17] - **China Market**: Nova's exposure to China is expected to decrease percentage-wise but increase in dollar terms. The company does not view China as a growth market for 2026 [18][19] Competitive Landscape - **Market Position**: Nova holds over 70% market share in integrated metrology and is growing in the optical CD standalone segment, competing with Onto and KLA [22][24] - **Chemical Metrology**: Nova has a strong presence in the backend of the process, while KLA dominates the front end [25] - **Chinese Competitors**: Local Chinese players are emerging, but Nova maintains a technological edge [26][27] M&A Strategy - **Capital Allocation**: Nova raised $750 million through convertible notes to fund M&A opportunities, focusing on companies that align with their financial model and offer clear synergies [29][30][31] - **Target Criteria**: The company seeks acquisitions that are accretive to EPS within 12 months and fit their operational and financial criteria [30][31] Long-term Goals - **Revenue Target for 2027**: Nova aims to achieve $1 billion in revenue by 2027, with a commitment to organic growth supplemented by potential acquisitions [32][33] - **Growth Trajectory**: The company plans to double revenues every five years, with a focus on maintaining long-term targets rather than adjusting based on short-term performance [35][36] Conclusion - Nova is positioned for significant growth in the semiconductor industry, with a strong focus on advanced technologies and strategic investments. The company is committed to achieving its long-term revenue targets while navigating competitive and market dynamics effectively.

Core Insights - Nova (NASDAQ: NVMI) reported Q3 CY2025 results with revenue of $224.6 million, exceeding market expectations by 1.5% and showing a year-on-year growth of 25.5% [1][6] - The company provided optimistic guidance for Q4 CY2025, projecting revenue of $220 million, which is 2.4% above analysts' estimates [1][6] - Non-GAAP profit per share was $2.16, aligning with analysts' consensus [1][6] Revenue and Profit Performance - Revenue for Q3 CY2025 was $224.6 million, surpassing analyst estimates of $221.2 million [6] - Adjusted EPS was $2.16, in line with analyst expectations of $2.15 [6] - Adjusted EBITDA was $76.22 million, slightly below the expected $77.19 million, with a margin of 33.9% [6] Market and Demand Insights - The growth in revenue was attributed to strong demand in advanced nodes and packaging, particularly from memory devices like DRAM and high-bandwidth memory [3][5] - CEO Gabriel Waisman noted record service revenues and strong adoption of the ELIPSON and METRION platforms in materials metrology [3] - The company anticipates continued demand for advanced logic, packaging, and memory, driven by AI-related semiconductor manufacturing needs [4] Future Outlook - Management expects that large-scale AI investments will positively impact the semiconductor industry, creating unique process control challenges that Nova is prepared to address [4] - Advanced packaging and gate-all-around processes are projected to be key growth drivers into 2026 [4] Operational Metrics - Operating margin for the quarter was 28.4%, consistent with the same quarter last year [6] - Inventory Days Outstanding decreased to 171 from 180 in the previous quarter [6] - Market capitalization stands at $9.31 billion [6]