Summary of the Conference Call Transcript Industry Overview - **Industry**: US Semiconductors and Semiconductor Equipment - **Event**: CES 2026 Preview and 2025 Retrospective Key Points CES 2026 Preview - The team is attending CES in Las Vegas with meetings scheduled with major semiconductor companies including Micron, Marvell, NVIDIA, and others [2][3] - NVIDIA is expected to provide updates on its QuantumX/SpectrumX silicon photonics switches and the Groq technology licensing deal during its keynote [2] - AMD may introduce the Helios rack featuring the Instinct MI400 and Venice server CPUs [2] Market Performance in 2025 - Semiconductors returned **42%** in 2025, outperforming the tech sector at **23%** and the broader market at **16%** [5] - Memory/Storage sector led EPS growth at **+168%**, with Micron and other key players showing significant returns [5] - Memory valuations expanded by **17%** to **9.8x** NTM PE, while semiconductor capital equipment (semicap) expanded by **40%** to **32.5x** [5] - Compute and networking EPS grew by **+65%** and **+63%** respectively, driven by AI integration in data centers [5] Sector-Specific Insights - **Compute**: Market cap increased from **$3,703.9 billion** to **$5,173.4 billion**, with a total return of **+40%** and EPS growth of **+65%** [7] - **Networking**: Market cap rose from **$1,208.1 billion** to **$1,747.9 billion**, with a total return of **+44%** and EPS growth of **+63%** [7] - **Memory/Storage**: Market cap surged from **$471.4 billion** to **$1,373.8 billion**, with a total return of **+199%** and EPS growth of **+168%** [7] - **Analog**: Market cap increased from **$510.8 billion** to **$561.3 billion**, with a total return of **+13%** and EPS growth of **+10%** [7] Future Expectations - The tone in investor meetings is expected to be positive, but share prices may remain stable unless full-year estimates are revised upwards [2] - There is skepticism regarding the wearable devices market despite anticipated new product launches [3] - Electrification sentiment is expected to remain weak due to regulatory risks, but advancements in Level 2+/Level 3 ADAS are anticipated [3] Risks and Valuation - Various valuation techniques such as P/E and EV/FCF are employed for company assessments [9] - Risks include macroeconomic downturns, disruptions in international trade, and technological innovations that could alter market dynamics [9] Additional Insights - The report includes a comprehensive slide deck with key charts, forecasts, and analyses for over **180** semiconductor stocks [4] - The semiconductor sector is expected to continue its growth trajectory into 2026, with significant developments anticipated in AI and data center technologies [4][5] This summary encapsulates the critical insights and data from the conference call, providing a comprehensive overview of the semiconductor industry and its performance in 2025, along with expectations for 2026.