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President & CEO Gabriel Waisman confirmed Nova is well-positioned with all four leading Gate-All-Around customers and is on track to achieve its cumulative $500 million revenue goal by 2026, seeing stable demand in the second half. CFO Guy Kizner clarified that the high gross margin was due to a favorable product mix of various offerings, not specifically chemical metrology, and that the impact from tariffs was marginal.

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Executive Gabriel Waisman highlighted Nova's strong position with front-end customers who also have advanced packaging needs, noting double-digit growth in advanced packaging revenue for 2025. Executive Guy Kizner stated that the primary tariff impact is on gross margin (30-50 basis points) with no current top-line impact, and confirmed the services business is on track to meet its 10-15% annual growth target.

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President and CEO Gabriel Waisman clarified that advanced packaging growth was driven by both chemical and dimensional metrology and is expected to continue with double-digit growth, aided by the Sentronics acquisition. CFO Guy Kizner added that the services business is projected to grow 10-15% in 2025, following 19% growth in 2024, and that no significant impact from trade restrictions is anticipated.

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Gabriel Waisman, executive, confirmed that while GAA is not yet the main revenue driver, it is expected to ramp significantly in 2025. He reiterated the company's estimate of achieving $500 million in aggregated GAA revenue by the end of 2026 has not changed. Waisman noted that Nova's portfolio is strongly positioned and is being evaluated or has been selected by all GAA manufacturers. Regarding China, he stated that Nova sees continued robust demand entering 2025 and that its share of sales from the region is similar to its peers.

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Chairperson & CEO Jayshree Ullal responded that it is too early to quantify the TAM. She noted that while port density could be high, the dollar value might be lower due to simpler functionality requirements. She deferred a more detailed answer to the upcoming Analyst Day in September.

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CFO Chantelle Breithaupt confirmed that there is some customer pull-forward activity related to tariff uncertainty contributing to the strong Q2 guide, but she characterized the effect as not being significant or material.

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CEO Jayshree Ullal broke down the $70 billion 2028 TAM as roughly one-third AI, one-third data center/cloud, and one-third campus/enterprise. She expressed confidence in the $750 million AI goal for 2025, citing strong progress with three customers deploying a cumulative 100,000 GPUs. The overall revenue guidance increase to $8.2 billion reflects broad momentum across AI, cloud, and enterprise.

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CEO Jayshree Ullal explained that the ratio varies based on the AI use case. While some customers build isolated back-end training clusters, Arista is increasingly seeing a multiplier effect. She cited scenarios where front-end spend could be 30%, 100%, or even 200% of the back-end investment. This is why the $750M back-end AI target is expected to drive a similar amount of front-end network demand, though tracking the 'pure AI' portion becomes difficult as workloads merge.

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CEO Tim Cook responded that Apple remains very focused on Vision Pro, highlighting new features in visionOS 26 and its resonance with enterprise customers, but did not comment on the future roadmap. On M&A, he stated Apple is very open to acquisitions that accelerate its roadmap and has already acquired about seven smaller companies this year.

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CEO Tim Cook declined to comment on potential tariffs, stating they are 'monitoring the situation.' He suggested the 'killer feature' of Apple Intelligence will vary by user, but that many, including the upgraded Siri, will be used daily.

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The analyst's line dropped before the question could be completed or answered. The company stated they would connect with the analyst offline.

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EVP and CFO Douglas Bittinger avoided a specific forecast for next year but highlighted the consistent tailwind from a growing installed base and noted the Reliant systems business is currently down. President and CEO Timothy Archer emphasized the synergistic value of CSBG, explaining that advanced services like Dextro cobots improve tool performance and ultimately help drive market share gains for the systems business.

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EVP and CFO Doug Bittinger declined to provide a forecast for the following year but noted the consistent tailwind of a growing chamber count. He expressed hope for a recovery in the Reliant systems business but made no commitment. CEO Timothy Archer added that CSBG's advanced services, like Dextro cobots, are synergistic, improving tool performance and driving future systems business share gains, not just generating their own revenue.

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EVP & CFO Douglas Bettinger confirmed the WFE forecast is an 'all-in' number that includes restricted customers. He also affirmed that his comment on 'customer concentration' is currently tied to 'geographic concentration,' so the regional mix should be roughly consistent from December to March. However, he reiterated that for the full year, China's revenue percentage will be down versus 2024.

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CFO Douglas Bettinger cautioned against direct comparisons with peers, citing differences in historical growth, product lead times, and individual assumptions. CEO Timothy Archer clarified that Dry Resist adoption is not strictly tied to High-NA EUV but occurs when its collective benefits in performance and cost reach a tipping point for a specific customer and node, leading to varied adoption timelines.

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President & CEO Greg Smith clarified that his 'snapback' comment referred to quarterly revenue timing, not a change in the stable full-year memory TAM view. He noted HBM4 capacity adds will be the primary driver, with ramps linked to specific AI accelerators in Q4 '25 and Q1 '26. He stated the GPU opportunity is driven by customers seeking supply chain resilience, not a specific packaging technology change.

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CFO Mandeep Chawla confirmed they expect to have three customers above 10% of revenue in Q3 and Q4, noting the Q2 drop to two was due to the overall revenue base growing faster than one of the customers. President and CEO Rob Mionis clarified that the optical project strength comes from a ramping data center interconnect program with an enterprise customer.

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CFO Linda LaGorga acknowledged a modest near-term impact on Q2 gross margin from tariffs on U.S. imports due to a timing lag in mitigation efforts, but stated the full-year 2025 gross margin is still expected to be up modestly from 2024. CEO Bertrand Loy added that he expects the current uncertainty to put additional pressure on CapEx in H2 2025, though this may be offset by improving wafer starts.

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CFO Linda LaGorga confirmed that the previously mentioned supplier issues are now essentially resolved, with the HCL issue fixed in Q4 and the valve constraint issue resolving in Q1. She also stated that an assessment of newly announced tariffs shows an immaterial impact to raw material costs, partly mitigated by the company's strategy of localizing supply chains.

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CEO Bertrand Loy specified the supply constraints impacted the MC division, involving a specific valve for gas purification and a contaminated batch of HCL for liquid filtration, with resolution expected by early next year. For China, Loy described business as strong, representing about 20% of revenue and expected to grow to a 20-25% share long-term as new local fabs ramp up production.

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CEO Jitendra Mohan stated that while copper remains the current focus due to its TCO advantages, Astera Labs has innovative optical solutions ready for when higher data rates and longer reach necessitate them. CFO Mike Tate advised that despite the product mix shift, the company's long-term gross margin target remains around 70%, suggesting margins would trend toward that level over time rather than necessarily increasing in the second half.

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CEO Jitendra Mohan stated that CPO is not expected to negatively impact the business in the near term, as customers prefer copper and will likely adopt pluggable optics before CPO. He sees CPO's first use case in Ethernet switches, a market Astera doesn't currently serve. CFO Michael Tate guided for a step-up in Q1 OpEx due to hiring, seasonal costs, and a recent acquisition, with the growth rate normalizing afterward. He reiterated a long-term 40% operating margin goal, driven by revenue growth.

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CFO Bren Higgins projected services growth around 10% for the year, slightly below the long-term trend due to export controls. CEO Richard Wallace explained that KLA's advanced packaging strength comes from adapting front-end tools for high-value AI-driven packages, forecasting growth to $850 million. Higgins added this strategy leverages existing R&D, creating a favorable margin profile.

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CEO Richard Wallace stated that while KLA works with all customers, the bulk of industry investment is clearly with the market leader, and KLA's business reflects that dynamic. CFO Bren Higgins specified that the $500 million impact from export controls was almost entirely related to logic projects, with minimal impact on memory.

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CFO Bren Higgins estimated that the infrastructure business (wafer and reticle inspection) has accounted for 25% to 35% of KLA's China systems revenue in recent years. He expressed continued confidence in the services growth model, stating they are trending toward the high end of the range, driven by longer tool life and high customer uptime requirements, which should offset potential headwinds.

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EVP and CFO Colette Kress reiterated that the complexity of the Blackwell system, with its many components and configurations, provides a 'tremendous amount of opportunity' for cost optimization over time. She explained that once the initial, urgent customer ramp is complete, the company can focus more intensely on these cost-down efforts. Regarding tariffs, she stated it remains an unknown until the U.S. government provides clarity on its plans, timing, and scope.

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CFO Colette Kress confirmed that the sovereign AI pipeline is 'absolutely intact' and remains a key growth driver, with countries in Europe and Asia Pacific building out national AI infrastructure. Regarding Gaming, she explained that supply is tight for the quarter due to the challenge of ramping products to meet fast sell-through, but she expects to be 'back on track with more supply' in the new calendar year.

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CFO Brian Millard explained that 2024's high growth rate was partly due to a lower base in 2023, and the 2025 forecast aligns with industry projections for square area growth. He asserted the company's belief that "all paths to high-efficiency blue go through our materials." Regarding China, Millard acknowledged local competition but expressed confidence in UDC's leadership due to its technology, customer relationships, and patent portfolio.

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CFO Brice Hill stated that it was too early to say, noting "we'll have to wait and see." He highlighted that while leading-edge is expected to accelerate, this is offset by the ICAPS market, which evolves quarterly. He also confirmed that the services (AGS) business is expected to return to growth in Q3 after a step-down in Q2.

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CFO Brice Hill corrected the premise, stating the company had not projected a 20% normalized rate. He reiterated that China revenue was 30% in Q4 and the Q1 outlook is also approximately 30%, which the company considers a normalized level now that the previously elevated DRAM shipments to China have concluded. This 30% figure includes all business segments.

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Executive Adviser Scott McFeely explained that as supply chain constraints ease, Ciena expects to resume its typical year-over-year cost reduction activities, which will contribute to margin expansion. CFO Jim Moylan characterized tariff risk as speculative, stating that no potential impact has been factored into guidance. He acknowledged exposure related to Mexico and said the company would work to mitigate any effects if tariffs were imposed.

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CEO Matt Murphy stated that their thinking on the business mix has not changed. He emphasized that Marvell works very closely with its key custom silicon customers to plan business and supply. While deferring to the customer to discuss their specific product dynamics, he confirmed that Marvell is fully prepared to support their needs as planned.

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