Summary of Key Points from the Conference Call Industry Overview - **Industry**: US Communications Equipment - **Focus**: Data Center Spending by Major Cloud Service Providers Core Insights - **Growth Projections**: Data center spending by the Big Five Cloud providers is projected to grow by **57% year-over-year (Y/Y)** in **2025** and **15% Y/Y** in **2026** [1] - **Investment Focus**: The growth expectations are particularly strong for **Tier 2** and **Rest of Cloud** capital expenditures, indicating a broadening opportunity within data center infrastructure [1] - **AI Spending**: The forecasts emphasize **AI-related spending**, which is a key driver of the projected growth, differing from traditional capital expenditure estimates that include all types of spending [1] Notable Trends - **Server Spending**: The ramp-up of **NVIDIA Blackwell Ultra** is significantly driving server spending, alongside contributions from **Google** and **Amazon** custom accelerators [5] - **Infrastructure Anticipation**: Increased spending on networking and physical infrastructure is noted in anticipation of AI platform deployments [6] - **General Purpose Compute**: The top four cloud service providers are investing in general-purpose compute resources, particularly **Google** and **Amazon**, in addition to AI-specific investments [7] Demand Dynamics - **Hyperscaler Demand**: There is robust demand for data center infrastructure, with US hyperscalers pulling demand forward due to macroeconomic factors, leading to an upside in capital expenditures [8] - **Enterprise Spending**: Some macroeconomic factors may inhibit enterprise spending, suggesting a shift towards public cloud migration [10] Component Inventory - **Inventory Levels**: There is an increase in component inventory for **DRAM** and servers, but this has not yet impacted capital expenditures [9] Custom Accelerators - **Deployment Trends**: The deployment of high-end custom accelerators, particularly **Google's TPU**, is expected to exceed commercial high-end GPUs in volume this year. However, **Microsoft's** high-end custom accelerator, **Maia**, is experiencing delays [9] Regional Developments - **Data Center Construction**: **Meta** and **Microsoft** are constructing multiple new data centers in the US, with Microsoft planning launches in **11 new regions** this year and Meta in **14 regions** over the next 2-4 years [9] - **Oracle's Expansion**: **Oracle** is planning new data centers in **7 regions** within the next 12-18 months [9] Emerging Players - **Rest of Cloud Providers**: Data center capital expenditures for this segment have increased by more than **23% for four consecutive quarters**, driven by the adoption of accelerated computing, particularly from specialized cloud service providers offering **GPU-as-a-Service (GPUaaS)** [11] - **CoreWeave**: Notably, **CoreWeave** is targeting over **$20 billion** in data center capital expenditures this year, with plans to expand its GPU deployments significantly [11] Conclusion - The data center infrastructure market is experiencing significant growth driven by AI investments and the expansion of cloud service providers. The trends indicate a shift in spending patterns, with emerging players gaining traction alongside established hyperscalers.

Jenny Horn, host of NextGen Investing is with me and of course we talk about the very latest when it comes to OpenAI and Microsoft. Good morning, Jenny. Good morning, Nicole.And the latest string of of course drama regarding the fact that this company still is a nonforprofit. So, at least saying that they're closer to con converting to becoming this more traditional for-profit company, nearing a resolution of these these ongoing and somewhat painful really negotiations they've seen with their top shareholde ...

Core Insights - The AI infrastructure market is expected to exceed $200 billion in spending by 2028, with both Dell Technologies and Hewlett Packard Enterprise well-positioned to benefit from this growth opportunity [2] Dell Technologies - Dell Technologies is experiencing strong demand for its AI-optimized servers, particularly the PowerEdge XE9680L, driven by digital transformation and interest in generative AI applications [3] - In Q4 of fiscal 2025, Dell's AI-optimized server orders increased by $1.7 billion, with shipments totaling $2.1 billion and a backlog of $4.1 billion [5] - Dell's partnership with companies like NVIDIA and Microsoft is expanding, enhancing its AI capabilities and enterprise AI adoption [6] - Dell's shares are trading at a forward Price/Sales ratio of 0.5X, indicating a relatively low valuation [13] - The Zacks Consensus Estimate for Dell's fiscal 2026 earnings is $9.34 per share, reflecting a 14.74% year-over-year increase [15] Hewlett Packard Enterprise - Hewlett Packard is also benefiting from strong demand for its AI-optimized servers, with its server business growing 30% year-over-year to $4.3 billion in Q1 of fiscal 2025 [7] - The launch of HPE's ProLiant Gen 12 server platform is expected to improve performance and energy efficiency, potentially replacing multiple older server generations and reducing power consumption by at least 65% [8] - HPE's GreenLake cloud product has achieved significant growth, with annual recurring revenue surpassing $2 billion, a 46% increase year-over-year [9] - HPE's shares are trading at a forward Price/Sales ratio of 0.52X, slightly higher than Dell's [13] - The Zacks Consensus Estimate for HPE's fiscal 2025 earnings is $1.94 per share, indicating a 2.51% decline year-over-year [15] Stock Performance - Year-to-date, Dell's shares have decreased by 34.9%, while HPE's shares have dropped by 37.6%, largely due to broader market weaknesses and rising trade tensions [10] - Dell holds a Zacks Rank of 3 (Hold), making it a stronger pick compared to HPE, which has a Zacks Rank of 4 (Sell) [17]

Core Insights - NVIDIA has introduced the Blackwell Ultra AI factory platform, enhancing AI reasoning capabilities and enabling organizations to accelerate applications in AI reasoning, agentic AI, and physical AI [1][15] - The Blackwell Ultra platform is built on the Blackwell architecture and includes the GB300 NVL72 and HGX B300 NVL16 systems, significantly increasing AI performance and revenue opportunities for AI factories [2][3] Product Features - The GB300 NVL72 system delivers 1.5 times more AI performance compared to the previous GB200 NVL72, and increases revenue opportunities by 50 times for AI factories compared to those built with NVIDIA Hopper [2] - The HGX B300 NVL16 offers 11 times faster inference on large language models, 7 times more compute, and 4 times larger memory compared to the Hopper generation [5] System Architecture - The GB300 NVL72 connects 72 Blackwell Ultra GPUs and 36 Arm Neoverse-based Grace CPUs, designed for test-time scaling and improved AI model performance [3] - Blackwell Ultra systems integrate with NVIDIA Spectrum-X Ethernet and Quantum-X800 InfiniBand platforms, providing 800 Gb/s data throughput for each GPU, enhancing AI factory and cloud data center capabilities [6] Networking and Security - NVIDIA BlueField-3 DPUs in Blackwell Ultra systems enable multi-tenant networking, GPU compute elasticity, and real-time cybersecurity threat detection [7] Market Adoption - Major technology partners including Cisco, Dell Technologies, and Hewlett Packard Enterprise are expected to deliver servers based on Blackwell Ultra products starting in the second half of 2025 [8] - Leading cloud service providers such as Amazon Web Services, Google Cloud, and Microsoft Azure will offer Blackwell Ultra-powered instances [9] Software Innovations - The NVIDIA Dynamo open-source inference framework aims to scale reasoning AI services, improving throughput and reducing response times [10][11] - Blackwell systems are optimized for running new NVIDIA Llama Nemotron Reason models and the NVIDIA AI-Q Blueprint, supported by the NVIDIA AI Enterprise software platform [12] Ecosystem and Development - The Blackwell platform is supported by NVIDIA's ecosystem of development tools, including CUDA-X libraries, with over 6 million developers and 4,000+ applications [13]