Summary of Benchmark Electronics Conference Call Company Overview - **Company**: Benchmark Electronics - **Industry**: Electronics and Precision Technologies Manufacturing - **Market Capitalization**: $2.7 billion [3] Key Financial Highlights - **Free Cash Flow**: $140 million over the last twelve months, with a gross margin greater than 10% for six consecutive quarters [4][11] - **Net Cash**: $79 million at the end of Q1 [4][19] - **Revenue**: $632 million in Q1, in line with guidance [13] - **Gross Margin**: 10.1% in Q1, slightly up from 10.0% year-over-year [14] Operational Insights - **Global Manufacturing Footprint**: 21 locations, with 55% in the Americas and 36% in the U.S. [6] - **Employee Count**: 12,500 associates, including 420 engineers [4] - **Focus on Inventory Management**: Reduced inventory days from 94 to 89, aiming for 5-5.5 turns [20] Sector Performance - **Medical Sector**: 12% decline quarter-over-quarter due to demand softness, expected recovery in the latter half of the year [16][24] - **Aerospace and Defense**: 4% growth quarter-over-quarter, driven by strong defense demand [15][22] - **Industrial Sector**: Slight decline of 2% quarter-over-quarter, but positive outlook for growth [15][22] - **Semi Cap Sector**: Revenue decreased by 2%, but year-over-year growth of 18% indicates market share gains [14] Strategic Focus - **Outsourcing Trend**: Continued growth expected in outsourcing, particularly in industrial and medical sectors [8][30] - **Tariff Management**: Minimal impact from tariffs as they are considered a pass-through, with 36% U.S. footprint providing stability [12][13] - **Future Growth Areas**: Anticipated growth in semi cap and industrial sectors, with ongoing investments in technology and capacity [21][22] Capital Allocation and Shareholder Returns - **Dividends**: Commitment to maintaining dividends, with a focus on returning capital to shareholders [18][47] - **Share Buybacks**: $8 million in shares repurchased in Q1, aimed at offsetting dilution [19][47] - **M&A Strategy**: No recent acquisitions, focusing on organic growth and existing customer base [48][49] Conclusion - **Outlook**: Optimistic about future growth, particularly in semi cap and industrial sectors, while maintaining operational efficiency and margin stability [28][30]

In 2025, Nvidia (NASDAQ: NVDA) stopped appearing like a safe investment as macroeconomic headwinds exacerbated the concerns over the semiconductor giant’s massive valuation.By mid-April, however, NVDA shares again appeared to be a strong buy for the second quarter (Q2) as the market started settling into the new tariff-ridden reality and the blue-chip chipmaker started unveiling its forward-looking plans.On April 14, the semiconductor giant announced it would take a critical step in weathering the trade war ...

Core Points - Nvidia has commenced chip production in Arizona and plans to build supercomputers in Texas, marking a significant shift in the manufacturing of generative AI technology to the US [1][2] - The production of Nvidia's Blackwell chips is taking place at TSMC facilities in Phoenix, while supercomputers will be constructed in Houston (with Foxconn) and Dallas (with Wistron) [2] - Nvidia anticipates that manufacturing at the supercomputer plants will increase over the next year [2] - The move to American manufacturing is aimed at meeting the rising demand for AI chips and supercomputers, enhancing supply chain resilience [3] - The push for semiconductor manufacturing in the US has gained momentum following the CHIPS Act signed by President Biden in 2022, which allocated $53 billion to support domestic chip production [3]