Nova (NVMI) 2025 Conference Transcript

Summary of Nova (NVMI) Conference Call Company Overview - Company: Nova (NVMI) - Event: Citi Global TMT Conference - Date: September 04, 2025 Industry Insights - Market Outlook: Nova expects to outpace the market in wafer fabrication equipment (WFE) growth in 2025, with a mid-guidance of $221 million in Q3 [2][3] - Memory Market: Anticipated growth in memory, particularly DRAM, with double-digit growth in advanced packaging [2][3] - Logic Market: Overall logic market may see a slight decline, but leading-edge nodes are expected to grow [2][3] Key Points - Growth Projections: Nova is on track to outperform WFE growth, which is projected to be mid-single digits, slightly lower than earlier expectations [2][3] - Advanced Packaging: Significant growth opportunities in advanced packaging due to increasing complexity and demand for process control [5][6] - Technology Differentiation: Nova's unique X-ray technology for material characterization positions it as a leader in the market, with capabilities that few competitors possess [9][10] - Gate-All-Around (GAA) Technology: Nova has secured a strong position with four leading-edge customers, projecting $500 million in revenues from GAA between 2024 and 2026 [16][18] - China Market: Nova anticipates a flat to slight decline in business from China, contrasting with peers expecting a 20% drop. Nova's revenue from China is projected to be slightly up [19][20] - Market Share Growth: Nova's market share increased from 20% in 2023 to 24.8% in 2024, making it the second-largest player after KLA [23][24] - Service Business Growth: Nova expects double-digit growth in its service business, supported by an installed base of over 6,400 tools [34] Financial Strategies - Convertible Note Offering: Nova issued a $650 million convertible note to fund corporate development, infrastructure, and potential acquisitions, aiming for $150 to $200 million in inorganic growth by 2027 [35][36][37] Additional Insights - Acquisition of Syntronics: The integration of Syntronics is progressing well, with a focus on direct sales and service, enhancing Nova's capabilities in the market [31][32] - Chemical Metrology: Nova is leveraging its frontend technology to capture market share in the backend, particularly in advanced packaging [25][26][27] - Future Opportunities: Nova is actively pursuing growth opportunities in both mature and leading-edge logic markets, with a focus on global infrastructure to support new fabs [40][41]