AGCO (NYSE:AGCO) Conference December 02, 2025 01:50 PM ET Company ParticipantsDamon Audia - CFOConference Call ParticipantsSteve Fisher - AnalystSteve FisherOkay, good afternoon. Thanks for coming to this session. I'm Steve Fisher, UBS Machinery, Engineering, Construction, and U.S. Building Materials Analyst. We are really thrilled to have the management of AGCO Corporation with us. We have Damon Audia, CFO, and Greg Peterson, who runs investor relations. Just one quick disclosure before we get started. As ...

Core Viewpoint - The discussion highlights the potential of high-performance chips in the automotive and AI sectors, particularly focusing on the capabilities of companies like Li Auto and their ambitions to develop proprietary chip designs and software systems to compete with established players like NVIDIA and Tesla [1][2][3]. Group 1: Chip Development and Ecosystem - Tesla's recent decision to halt its Dojo project suggests a strategic pivot towards utilizing its AI6 chip for both automotive and cloud computing applications, indicating a shift in focus towards high-performance computing needs in the industry [2]. - The conversation emphasizes that the biggest challenge in chip development is not just the hardware itself but creating a robust ecosystem around it, similar to NVIDIA's CUDA platform, which allows for compatibility across various applications [3]. - Li Auto's potential to develop its own chip design and software capabilities could position it similarly to NVIDIA and Tesla, although significant gaps still exist compared to these industry leaders [2][3]. Group 2: Software and System Integration - The integration of software capabilities with hardware is crucial, as demonstrated by Li Auto's efforts to optimize the Orin chip for its specific needs, showcasing its software development capabilities [4]. - The dialogue between Li Auto's leadership indicates that without strong teams in system-on-chip (SoC) development and compiler technology, achieving advanced AI functionalities may be challenging [6][7]. - The necessity for companies to develop their own hardware and software solutions is underscored, as relying on third-party hardware may not yield optimal results in AI and robotics applications [8].