NTT (OTCPK:NTTY.Y) 2025 Investor Day Transcript

Summary of NTT Investor Day - October 06, 2025 Company and Industry Overview - Company: NTT Inc. - Industry: Telecommunications and Optical Computing Key Points and Arguments 1. Introduction of ION Initiative: NTT is focusing on the ION initiative, which aims to develop low power optical computing technologies to support the growing demands of the AI era [6][10][11] 2. Optical Computing Focus: The presentation emphasized the transition from electronic circuits to optical technology to address issues like power consumption, speed, and heat generation in data centers [12][14][15] 3. AI Market Growth: The AI market is expected to grow 20 times compared to 2021, leading to increased power consumption in data centers [14][15] 4. Power Consumption Reduction: NTT aims to reduce total infrastructure power consumption by optimizing network and device power usage, and by utilizing renewable energy sources [15][16] 5. Photonics Electronics Convergence (PEC): The development of PEC devices is crucial for enhancing power efficiency in optical computing, with a roadmap for PEC1, PEC2, and PEC3 [22][42][47] 6. Commercialization Timeline: NTT plans to commercialize PEC2 by Q4 next year, with a production capacity of 5,000 units per line to meet AI demand [56][60] 7. Partnerships: Collaborations with companies like Broadcom and Acton Technology are essential for the development and commercialization of optical computing technologies [61][68] 8. Market Size and Demand: NTT anticipates a significant market for PEC devices, with projections of over 1,000,000 units needed annually, primarily driven by hyperscalers in the US [84][85] Additional Important Content 1. Competitor Landscape: NTT identifies competitors such as NVIDIA and Broadcom, emphasizing the need for collaboration and multi-supplier ecosystems to drive innovation [78][80] 2. Technological Advantages: NTT's unique socket-type optical engine allows for easier replacement and maintenance compared to competitors' soldering methods, providing a competitive edge [64][67] 3. Environmental Considerations: The shift to optical technology is positioned as a more eco-friendly solution for data centers, reducing reliance on traditional power sources [30][41] 4. Future Projections: The expected growth in AI computing capacity necessitates a shift to optical interconnects, as traditional copper connections will not suffice for the increasing bandwidth demands [97][108] This summary encapsulates the core discussions and insights from the NTT Investor Day, highlighting the company's strategic direction in optical computing and its implications for the telecommunications industry.