Core Insights - Sanmina Corporation (SANM) is focusing on advancing high-speed network infrastructure through its fiber expertise, providing reliable and scalable solutions for telecom, data center, and enterprise markets [1] Group 1: Product Offerings - Sanmina's fiber portfolio includes fiber optic cables, transceivers, assemblies, connectors, and active optical cables, delivering high bandwidth, low latency, and reliable performance [2] - The company also offers passive components, optical sub-assemblies, and ruggedized solutions for demanding applications, along with optical line cards, WDM components, and fiber panels [2] Group 2: Partnerships and Collaborations - Sanmina collaborates with Nokia Corporation (NOK) to produce fiber-optic network equipment and optical modules in the U.S., supporting broadband expansion programs like BEAD [3] - The company develops customized fiber solutions for challenging environments, making it a trusted partner for network operators upgrading their fiber infrastructure [3] Group 3: Market Outlook - According to Grand View Research, the global fiber optics market is projected to grow to approximately $17.95 billion by 2033, with a CAGR of 6.6% [4] - Sanmina's strengths in innovation, engineering, and global manufacturing position it to capitalize on the increasing demand for high-speed fiber connectivity [4] Group 4: Competitive Landscape - Sanmina faces competition from Corning Incorporated (GLW) and Amphenol Corporation (APH), with Corning focusing on high-bandwidth optical connections in AI data centers [5] - Amphenol has acquired CommScope's Connectivity and Cable Solutions business to enhance its fiber optic offerings and is expanding its product range for harsh environments [6] Group 5: Financial Performance - Sanmina's shares have increased by 110.8%, outperforming the Electronics - Manufacturing Services industry's growth of 86% [7] - The company's shares currently trade at 17.41 times forward 12-month earnings, which is lower than the industry average [9] - Earnings estimates for 2025 and 2026 have remained static at $9.64 and $11.46, respectively [10]

Core Insights - The artificial intelligence (AI) sector is poised for significant transformation driven by robust demand from various end markets, including hyperscale automation, robotics, healthcare, energy, materials, financials, and cybersecurity over the next five years [1] Company Summaries Applied Digital Corp. (APLD) - APLD is a U.S. designer and operator of high-performance data centers specifically for AI and blockchain workloads, with a Zacks Rank of 2 (Buy) [5][12] - The global AI market is projected to reach $500 billion by 2027, indicating strong long-term growth potential for APLD [5] - APLD's data centers are designed to meet the high power density and cooling requirements of AI applications, which positions the company favorably as demand from hyperscalers increases [6] - The company has secured multi-year leases at its Ellendale campus, expanding from 250 MW to 400 MW, with anticipated lease revenue of approximately $11 billion over 15 years [7] - APLD has reduced its build timelines from 24 months to 12-14 months and is currently developing multiple campuses with 700 MW under construction [9] - The company has an expected revenue growth rate of 30.4% and earnings growth rate of 61.3% for the current year, with significant upward revisions in earnings estimates over the past 60 days [12] Lumentum Holdings Inc. (LITE) - LITE specializes in optical and photonic technologies for telecommunications and data centers, holding a Zacks Rank of 1 (Strong Buy) [17] - The company is focused on developing photonic solutions for AI applications, particularly in data centers, with offerings that include high-speed transceivers and lasers [15] - LITE has seen a surge in demand due to its collaboration with NVIDIA Corp. in developing silicon photonics for networking switches [16] - The expected revenue growth rate for LITE is 56% and earnings growth rate is over 100% for the current year, with positive revisions in earnings estimates noted over the last 60 days [17]

Core Insights - Susquehanna initiated coverage of Fabrinet (FN) with a Positive rating and a price target of $550, highlighting its benefits from the transceiver market in data centers and opportunities in optical networking and AI server contract manufacturing [1] - Evercore ISI initiated coverage of Rockwell Automation (ROK) with an In Line rating and a price target of $440, emphasizing the multi-industrials' leverage to strong underlying cycles and expected market outperformance in 2026 [1] - Macquarie initiated coverage of Pony AI (PONY) with an Outperform rating and a price target of $29, noting its leadership in robotaxi commercialization in China [1] - Goldman Sachs initiated coverage of SiTime (SITM) with a Buy rating and a price target of $420, recognizing it as a leading provider of silicon-based precision timing solutions [1] Company Summaries - **Fabrinet (FN)**: Positive rating with a $550 price target; benefits from data center transceivers and optical networking opportunities [1] - **Rockwell Automation (ROK)**: In Line rating with a $440 price target; multi-industrials expected to outperform in 2026 [1] - **Pony AI (PONY)**: Outperform rating with a $29 price target; forefront of robotaxi commercialization in China [1] - **SiTime (SITM)**: Buy rating with a $420 price target; leading provider of silicon-based precision timing solutions [1] - **Macom (MTSI)**: Neutral rating initiated [1] - **Honeywell (HON)** and **GE Vernova (GEV)**: Outperform ratings initiated [1] - **RealReal (REAL)**: Outperform rating initiated; resale market viewed as a significant emerging trend in retail [1]

Summary of Lumentum's 2025 Conference Call Company Overview - **Company**: Lumentum (NasdaqGS:LITE) - **Industry**: Optical and semiconductor technology Key Points Leadership Transition - Michael Hurlston has been CEO for less than a year, taking over during a period of significant change and growth in the company [4][2] - Initial forecasts provided to Hurlston were significantly understated, leading to a more optimistic outlook for the company [4][5] Business Segments - **Transceiver Business**: - Currently generating approximately $500 million annually, with aspirations to reach $1 billion [11] - Margins are currently below mid-30s%, with a long-term corporate margin target of 42% [11][12] - Challenges include competition from larger players and the need for improved manufacturing processes [11][16] - **EMLs (Electro-absorption Modulated Lasers)**: - Strong demand with a 40% capacity increase expected over the next three quarters [18][19] - The company is sold out for 2026, indicating robust long-term agreements with customers [18][19] - **Co-Packaged Optics (CPO)**: - Expected revenue ramp-up in the second half of 2026, with multiple customer engagements beyond the leading partner [31][32] - The market is seeing a shift towards optical scale-up, with increasing confidence in demand [35][36] - **Optical Circuit Switches (OCS)**: - Significant growth potential with a projected revenue increase from $10 million to $100 million within the year [47] - Manufacturing capacity is the primary limitation, with ongoing efforts to scale production [49] Market Dynamics - The optical industry is experiencing unprecedented demand, surpassing previous cycles, particularly in semiconductor-like scales [5][28] - Supply-demand imbalance is expected to persist through at least 2027, necessitating further investment in manufacturing capabilities [24][25] Competitive Landscape - Lumentum's MEMS-based OCS technology is positioned favorably against competitors using Liquid Crystal solutions, emphasizing reliability and performance [42][53] - The company is optimistic about differentiating its solutions in a competitive market, particularly against major players like Cisco and Broadcom [38][39] Component Business - Traditional telecom components are seeing increased demand driven by major customers transitioning to new technologies [55][58] - The scale-across opportunity is particularly strong, driven by the need for distributed data center infrastructure [60][61] Conclusion - Lumentum is positioned for significant growth across multiple segments, with a focus on improving margins and scaling production to meet high demand. The leadership transition has set a positive tone for future performance, with strong customer commitments and a clear strategy for navigating competitive challenges.

Core Viewpoint - Lumentum Holdings reported strong fiscal first quarter earnings and revenue, significantly exceeding Wall Street expectations, driven by growth in AI and cloud computing sectors [1][3][5]. Financial Performance - For the three months ended September 30, Lumentum's adjusted earnings soared 511% year-over-year to $1.10 per share, while revenue climbed 58% to $533.8 million, surpassing analyst estimates of $1.03 per share on revenue of $526.5 million [3][4]. - The company provided guidance for the current quarter ending in December, predicting revenue of $650 million, well above the estimated $561 million, indicating over 20% sequential revenue growth [5]. Growth Drivers - Lumentum's new growth engines include optical circuit switches, co-packaged optics, and cloud transceivers, with the latter expected to grow sustainably in the upcoming quarters [5][6]. - The company is increasing its InP chip production capacity by 40% to meet the high demand for laser chips, which are becoming a significant growth driver [3][7]. Market Performance - Lumentum's stock surged over 17% to $220.35 in early trading, reflecting a 120% gain in 2025 prior to the earnings report [6]. - The stock holds a strong Accumulation/Distribution Rating of B-plus and a best-possible IBD Composite Rating of 99, indicating robust institutional buying and overall growth potential [8][9]. Industry Position - Lumentum is recognized as a consolidator in the fiber-optic components industry and supplies optical components to major clients like Apple [7]. - The company is well-positioned to support the rapid expansion of AI compute with its broad optical portfolio [6].

COMPANY OVERVIEW November 3, 2025 1 Disclaimer This presentation and the accompanying oral presentation contain "forward-looking" statements that are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements other than statements of historical fact contained in this presentation, including information concerning our business plans and objectives, potential growth opportunities, competitive position, industry environm ...

Core Insights - Arista Networks, Inc. (ANET) is a leading tech company specializing in data-driven networking solutions, with a market cap of $183.4 billion, and is set to announce its fiscal Q3 earnings on November 4, 2025 [1] Financial Performance - Analysts anticipate ANET will report a profit of $0.65 per share for Q3, reflecting a 14% increase from $0.57 per share in the same quarter last year [2] - For the full fiscal year, EPS is expected to reach $2.56, a 24.3% increase from $2.06 in fiscal 2024, with further growth projected to $2.91 in fiscal 2026, representing a 13.7% year-over-year rise [3] Stock Performance - ANET shares have outperformed the S&P 500 Index, which gained 14.5% over the past 52 weeks, with ANET shares increasing by 47.9% during the same period [4] - The stock also significantly outperformed the Technology Select Sector SPDR Fund, which rose by 23.2% [4] Market Position and Growth Drivers - Arista's strong performance is attributed to its leadership in high-performance switching, robust demand for cloud and AI networking solutions, and innovative product launches [5] - The company's software-driven approach and comprehensive portfolio position it well for continued growth in the AI networking sector [5] Recent Developments - Following the Q2 results reported on August 5, where adjusted EPS was $0.73 against expectations of $0.65, ANET shares surged by 17.5% [6] - The company reported Q2 revenue of $2.2 billion, exceeding Wall Street forecasts of $2.1 billion, and expects Q3 revenue to be $2.3 billion [6] Analyst Sentiment - The consensus among analysts is bullish, with a "Strong Buy" rating for ANET stock; 17 out of 24 analysts recommend a "Strong Buy," while two suggest a "Moderate Buy" and five give a "Hold" [7] - The average analyst price target for ANET is $166.78, indicating a potential upside of 13.8% from current levels [7]

Core Viewpoint - Fabinet's shares have reached a record high following JP Morgan's price target increase from $345 to $430, driven by strong investments in data center infrastructure, resulting in an 85% gain year-to-date [1][5]. Company Overview - Fabinet operates as a contract manufacturer, designing advanced optical equipment and providing components such as amplifiers and transceivers for optical communications networks [2][3]. - The company also offers supply chain management, packaging solutions, and industrial laser manufacturing, which are utilized in various sectors including medical devices [4]. Financial Performance - Fabinet has a market capitalization of approximately $15 billion and generated about $3.5 billion in sales on a trailing basis [5]. - Sales are projected to increase to around $4.6 billion next year, reflecting a growth of 4.6% compared to $4 billion this year, with a 17% increase expected, which is 300 basis points higher than the 5-year average [6]. - Earnings growth is anticipated to be around 20%, significantly improving from the 14% 5-year average, indicating a positive trend in financial performance [6]. Market Trends - The demand for data center and AI infrastructure is expected to remain robust through 2026, benefiting companies like Fabinet that supply essential components for optical communications [5]. - There is a noted rotation in investment from larger mega-cap companies to mid-tier businesses within the AI ecosystem, which includes Fabinet and its peers [10].

Core Insights - Coherent Corp. (COHR) and Arm Holdings plc (ARM) are both technology companies focused on advanced hardware and innovation, playing crucial roles in modern computing [1][3] - COHR specializes in photonics and optical components, while ARM is known for its semiconductor IP that powers a significant share of smartphones and AI processors [2] Coherent Corp. (COHR) Summary - COHR experienced a remarkable 51% increase in fiscal 2025 revenue, driven by a 61% surge in its data center business, indicating strong demand in high-growth technology sectors [4] - The company is advancing its product offerings with the introduction of 1.6T transceivers and is developing next-generation 3.2T transceivers to meet the needs of hyperscale data centers [5] - COHR has tripled its indium phosphide production capacity year over year and launched the world's first 6-inch indium phosphide production line, enhancing cost efficiency and product volume [6] - The company is also entering the optical circuit switch (OCS) market, which is expected to accelerate growth as demand for higher bandwidth and faster data transmission increases [7] - COHR faces competition in the Silicon Carbide (SiC) market from companies like Wolfspeed and ON Semiconductor, which are pushing technological boundaries [8][10] - The Zacks Consensus Estimate for COHR indicates a 9% growth in sales and a 29% increase in EPS for fiscal 2026 [16] Arm Holdings plc (ARM) Summary - ARM's chip architectures are essential for mobile computing, powering devices from major companies like Apple, Qualcomm, and Samsung, and maintaining a competitive edge through efficiency and performance [11] - The company is becoming increasingly relevant in the AI and IoT sectors, with its architecture supporting the growing demand for embedded AI models [12] - ARM faces challenges in China due to the rising adoption of RISC-V, which could limit its growth in this key market [13] - The potential move into producing its own CPUs presents both opportunities for market expansion and risks of straining relationships with existing customers [14][15] - The Zacks Consensus Estimate for ARM suggests an 18% year-over-year growth in sales, with EPS expected to grow by 3% [19] Valuation and Investment Case - COHR is attractively valued with a forward P/E of 22.26X, while ARM's higher forward P/E of 72.07X reflects investor confidence in its growth potential [23] - COHR is viewed as the stronger investment case due to its execution in data center optics and expansion into Silicon Carbide, while ARM faces risks related to its dependence on China and potential channel conflicts [24] - Current Zacks Ranks indicate COHR as a Hold (3) and ARM as a Sell (4) [25]

Financial Data and Key Metrics Changes - Jabil reported Q3 net revenue of $7.8 billion, a 16% increase year over year, exceeding guidance by $800 million [5][11] - Core operating income reached $420 million with core operating margins at 5.4%, a 20 basis point improvement year over year [6][11] - Core diluted earnings per share for Q3 was $2.55, up 35% compared to the same quarter last year [7][11] Performance by Business Segment - Regulated Industries segment revenue was $3.1 billion, flat year over year, reflecting softness in EV and renewable markets [7][8] - Intelligent Infrastructure segment revenue was $3.4 billion, up approximately 51% year on year, driven by AI-related cloud and data center infrastructure [8][9] - Connected Living and Digital Commerce segment revenue was $1.3 billion, down approximately 7% year over year, mainly due to softness in consumer-driven products [9][10] Market Data and Key Metrics Changes - Inventory days decreased to 74 days, with cash flow from operations at $406 million for Q3 [10][11] - The company expects Q4 revenue for Regulated Industries to be $2.9 billion, down 5% year on year, while Intelligent Infrastructure is projected to grow to $3.3 billion, up approximately 42% year over year [12][13] Company Strategy and Development Direction - Jabil is focusing on expanding its U.S. manufacturing footprint, particularly in AI and data center infrastructure, with a planned investment of $500 million over several years [19][20] - The company aims to enhance core margins and optimize cash flow while returning value to shareholders through share repurchases [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate geopolitical uncertainties and highlighted the strength of its diversified portfolio [15][24] - The outlook for fiscal year 2025 has been raised to approximately $29 billion in revenue, with expectations of generating over $1.2 billion in adjusted free cash flow [25][26] Other Important Information - Jabil's debt to core EBITDA ratio is approximately 1.4 times, indicating a healthy balance sheet [11] - The company repurchased $339 million of its shares in Q3 and is on track to complete a $1 billion share repurchase authorization [11][12] Q&A Session Summary Question: Growth expectations for AI-related revenues - Management confirmed AI-related revenue is projected to reach $8.5 billion for fiscal 2025, with strong growth anticipated in the segment [31][32] Question: Operating margin improvement - Management indicated that achieving operating margins above 6% would depend on better capacity utilization and growth in higher-margin businesses [36][39] Question: Risks associated with sales growth - Management noted that the majority of revenue growth was not due to pull-in buying related to tariff uncertainties, particularly in capital equipment and cloud data center infrastructure [41][42] Question: U.S. manufacturing expansion rationale - The new U.S. investment is aimed at diversifying the customer base and not solely for existing customers [44][45] Question: Trends in the transceiver business - Management reported strong growth in the transceiver business, with demand for advanced products like 1.6T expected to increase in the near future [72][73] Question: Future capital allocation strategy - Management emphasized a commitment to returning value to shareholders through buybacks while remaining open to strategic acquisitions [62][64]