Summary of Nova (NasdaqGS:NVMI) FY Conference Call - January 14, 2026 Company Overview - **Company**: Nova (NasdaqGS:NVMI) - **Event**: 28th Annual Needham Growth Conference - **Key Speaker**: Guy Kizner, CFO Industry Insights - **Semiconductor Industry Growth**: The semiconductor industry is expected to reach $1 trillion in revenues by 2026, driven by demand from AI, data centers, automotive, and industrial sectors [4][5] - **Investment Trends**: Customers are making long-term capacity investments, particularly in advanced nodes and memory, with a focus on DRAM and advanced packaging [3][5] Financial Performance and Projections - **2026 Outlook**: Nova anticipates a growth year in 2026, with a second-half weighting due to project timing rather than demand [3][5] - **Revenue Target**: The company is on track to meet its $500 million cumulative revenue target from Gate-All-Around technology by 2026 [8] - **Advanced Packaging Growth**: Advanced packaging revenue is projected to grow from 10% in 2023 to around 20% in 2026, driven by both inorganic acquisitions and organic product adjustments [12][14] Market Segments - **Leading Edge Logic**: The transition from FinFET to Gate-All-Around is enhancing Nova's position in metrology, with significant growth expected from major players like TSMC, Intel, Samsung, and Rapidus [7][9] - **Memory Market**: DRAM is a key growth driver, with Nova well-positioned among top spenders. However, the NAND market is currently focused on upgrades rather than capacity expansions [15][16][17] - **China Market**: Nova's exposure to China is expected to decrease percentage-wise but increase in dollar terms. The company does not view China as a growth market for 2026 [18][19] Competitive Landscape - **Market Position**: Nova holds over 70% market share in integrated metrology and is growing in the optical CD standalone segment, competing with Onto and KLA [22][24] - **Chemical Metrology**: Nova has a strong presence in the backend of the process, while KLA dominates the front end [25] - **Chinese Competitors**: Local Chinese players are emerging, but Nova maintains a technological edge [26][27] M&A Strategy - **Capital Allocation**: Nova raised $750 million through convertible notes to fund M&A opportunities, focusing on companies that align with their financial model and offer clear synergies [29][30][31] - **Target Criteria**: The company seeks acquisitions that are accretive to EPS within 12 months and fit their operational and financial criteria [30][31] Long-term Goals - **Revenue Target for 2027**: Nova aims to achieve $1 billion in revenue by 2027, with a commitment to organic growth supplemented by potential acquisitions [32][33] - **Growth Trajectory**: The company plans to double revenues every five years, with a focus on maintaining long-term targets rather than adjusting based on short-term performance [35][36] Conclusion - Nova is positioned for significant growth in the semiconductor industry, with a strong focus on advanced technologies and strategic investments. The company is committed to achieving its long-term revenue targets while navigating competitive and market dynamics effectively.

Core Viewpoint - Nova Ltd. is expected to report strong first-quarter 2025 results, with anticipated revenues between $205 million and $215 million, reflecting a significant year-over-year growth of 48.38% [1][2] Revenue and Earnings Expectations - The Zacks Consensus Estimate for first-quarter 2025 revenues is $210.4 million, indicating a growth of 48.38% from the previous year [1] - The consensus for first-quarter earnings is set at $2.08 per share, suggesting a year-over-year increase of 49.64% [2] Performance History - Nova has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 9.28% [2] Key Growth Drivers - The upcoming results are expected to benefit from strong growth in the Materials Metrology portfolio, particularly from VeraFlex, Elipson, and Metrion solutions [2] - Continued demand for dimensional stand-alone OCD solutions, driven by unique capabilities in Gate-All-Around and advanced packaging applications, is a key catalyst for growth [2] - Increased exposure to new markets and a differentiated portfolio, along with rising AI-related demand for energy-efficient computing, are positive indicators for the company's prospects [3] - The acquisition of Sentronics Metrology is also expected to contribute to growth in the first quarter [3] Earnings ESP and Zacks Rank - Nova has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy), which indicates a moderate likelihood of an earnings beat [4]

Core Viewpoint - Nova Ltd. (NVMI) has experienced a 15.4% decline in shares, which is less severe than the 22.4% drop in the Zacks Computer and Technology sector, driven by strong demand in advanced packaging and materials metrology, key growth drivers for the company [1] Financial Performance - In the fourth quarter of 2024, Nova's operating expenses increased by 35% year-over-year due to heightened investments in research and development, sales and marketing, and general administrative functions, impacting near-term profitability [3] - The Zacks Consensus Estimate for NVMI's 2025 revenues is projected at $840.7 million, indicating a year-over-year increase of 25.03%, while the earnings estimate is $8.30 per share, reflecting a growth of 24.07% [11] Market Dynamics - China accounted for 39% of NVMI's total revenues in 2024, but a shift in demand towards advanced nodes in other regions is expected to reduce this contribution, which may concern investors [4] - Nova's advanced packaging segment saw revenues more than double year-over-year, contributing 15% to total product revenues in Q4 2024, driven by strong adoption of dimensional and chemical metrology solutions [9] Product Development and Growth - The Materials Metrology portfolio achieved record sales in Q4 2024, with platforms like VeraFlex, Elipson, and Metrion delivering their highest quarterly and annual results [5] - VeraFlex has gained significant market traction, particularly in gate-all-around transistor architectures and advanced packaging applications [6] - Elipson has secured repeat orders from a leading memory manufacturer and penetrated two additional major customers, showcasing its advanced Raman spectroscopy technology [7] - The Metrion platform has been adopted by a leading global memory manufacturer for advanced DRAM R&D and is under evaluation by two top-tier customers, indicating strong market potential [8] Strategic Initiatives - Nova's acquisition of Sentronics is expected to enhance its advanced packaging offerings, facilitating entry into the growing advanced Wafer Level Packaging market [10]