THIRD QUARTER FISCAL YEAR 2026 Earnings Conference Call MARCH 10, 2026 This presentation contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words such as "will," "believe," "anticipate," "expect," "estimate," "intend," "project," "plan," or words or phrases with simi ...

Core Insights - Nvidia's $100 billion investment in OpenAI marks the largest AI deal in history, aimed at building AI datacenters and enhancing AI infrastructure [1][2][30] - The collaboration between Nvidia and OpenAI is seen as a pivotal moment for AI dominance in the U.S., with significant implications for the entire AI supply chain [2][30] Nvidia and OpenAI Partnership - Nvidia provides the hardware while OpenAI focuses on software, creating a powerful synergy that could redefine AI capabilities [2][30] - The scale of the investment suggests a massive expansion in AI infrastructure, potentially exceeding the combined AI capacity of major tech companies [1][2] Market Sentiment and Historical Context - Analysts express concerns about market frothiness, drawing parallels to the internet bubble of the late 1990s, where large deals were announced without substantial cash transactions [4][5][6] - Despite bubble signals, there is a belief that the AI sector still has at least 12 months of growth potential, indicating ongoing investment opportunities [7][29] Sector Growth and Investment Opportunities - The defense drone market is projected to grow from approximately $16 billion in 2024 to $23 billion by 2029, with some forecasts suggesting it could reach $50 billion by 2032 [9] - Companies like Kratos Defense & Security Solutions (KTOS) are already experiencing significant stock price increases, reflecting investor anticipation of growth in the defense sector [10][12] Small-Cap Market Dynamics - The Russell 2000 index recently reached a record close, historically indicating further gains for the S&P 500 in the following year [26][28] - The resurgence of small-cap stocks is viewed as a positive sign for market breadth and risk appetite, suggesting a bullish outlook for the overall market [25][28] Future Trends in AI and Robotics - Experts predict that the next trillion-dollar opportunity will emerge from the fusion of robotics and AI, termed Physical AI, which could lead to transformative changes across various industries [16][22] - The ongoing investment in AI-powered robotics is expected to create substantial value, potentially exceeding $20 trillion [22][30]