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    Joseph Quatrochi • Wells Fargo Securities

    Joseph Quatrochi's questions to Allegro Microsystems Inc (ALGM) leadership

    Joseph Quatrochi's questions to Allegro Microsystems Inc (ALGM) leadership • Q4 2025

    Question

    Joseph Quatrochi from Wells Fargo asked for details on the specific areas driving the return to backlog growth and questioned the potential impact of tariffs based on the geographic origin of semiconductor wafers.

    Answer

    CEO Michael Doogue attributed the strong backlog growth to design wins in strategic areas, especially e-mobility and data center. CFO Derek D'Antilio clarified the tariff situation, stating that all products ship from the Philippines and are currently exempt. He noted that about 35% of wafers originate from the U.S. and have not been subject to tariffs, adding that the company has flexibility to shift wafer sourcing between fabs.

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    Joseph Quatrochi's questions to Arm Holdings PLC (ARM) leadership

    Joseph Quatrochi's questions to Arm Holdings PLC (ARM) leadership • Q4 2025

    Question

    Joseph Quatrochi of Wells Fargo & Company asked for the reasoning behind not issuing a full-year fiscal '26 guide, seeking to understand how the current visibility differs from previous years when guidance was provided.

    Answer

    CFO Jason Child stated the decision was due to lower visibility than is typical. He explained that Arm's partners and customers are also refraining from providing full-year guidance amid macro uncertainty from potential tariffs. This lack of signal on the royalty side would necessitate an unhelpfully wide guidance range.

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    Joseph Quatrochi's questions to Arm Holdings PLC (ARM) leadership • Q3 2025

    Question

    Joseph Quatrochi asked for insight into the ramp of Compute Subsystem (CSS) contributions to royalty revenue heading into fiscal 2026, given that partner demand appears stronger than initially anticipated.

    Answer

    CFO Jason Child stated that while specific fiscal 2026 guidance is not yet available, the company has strong momentum. He highlighted that Q3 was the first quarter with material CSS royalty revenue, driven by the MediaTek Dimensity 9400 and Microsoft Cobalt chips, and expects this momentum to continue as more CSS-based products are deployed.

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    Joseph Quatrochi's questions to Monolithic Power Systems Inc (MPWR) leadership

    Joseph Quatrochi's questions to Monolithic Power Systems Inc (MPWR) leadership • Q1 2025

    Question

    Joseph Quatrochi asked about the outlook for the storage and computing segment for the remainder of the year following its strong Q1 performance, and also inquired about demand trends for traditional server CPUs.

    Answer

    CEO Michael R. Hsing dismissed traditional seasonality, attributing the segment's strength to the ramp of long-anticipated design wins in memory (DDR5) and CPU power for notebooks and desktops. CFO Bernie Blegen and Vice President of Finance Tony Balow confirmed the growth was broad-based and not expected to fall off sharply in Q2. Regarding traditional servers, Hsing stated that demand is good and MPS is increasing its market share as customers refresh their platforms.

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    Joseph Quatrochi's questions to Monolithic Power Systems Inc (MPWR) leadership • Q4 2024

    Question

    Joseph Quatrochi asked about the drivers behind the notebook strength in Q1, questioning if it was from AI PCs or channel refill. He also inquired about the architecture of new enterprise data solutions, specifically if they are lateral or vertical power.

    Answer

    EVP and CFO Bernie Blegen responded that they believe much of the notebook strength is tied to new AI product demand, but acknowledged it's an atypical Q1 ramp and they don't have a definitive answer. Regarding power architecture, Bernie Blegen and CEO Michael Hsing declined to comment on specific customer solutions, with Michael Hsing stating explicitly that customers do not want them to reveal whether the solutions use lateral or vertical power.

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    Joseph Quatrochi's questions to Arrow Electronics Inc (ARW) leadership

    Joseph Quatrochi's questions to Arrow Electronics Inc (ARW) leadership • Q1 2025

    Question

    Joseph Quatrochi inquired about the Q2 guidance, asking for clarification on the potential 2% to 4% tariff-related sales increase for the components business and its impact on EBIT. He also asked how customer inventory replenishment trends relate to Arrow's own inventory levels.

    Answer

    President and CEO Sean Kerins, along with CFO Rajesh Agrawal, clarified that the 2-4% tariff impact is a potential upside not included in the baseline guidance, which is meant to reflect the core business performance. Kerins added that the company is actively working to mitigate margin risks. Regarding inventory, Kerins stated that levels are normalizing with demand signals and the aging profile is improving, though some pockets of excess remain. He emphasized the need to be prepared to support growth as the market recovers.

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    Joseph Quatrochi's questions to Arrow Electronics Inc (ARW) leadership • Q4 2024

    Question

    Joseph Quatrochi of Wells Fargo asked about the impact of intra-quarter turns demand on Q4 results and the Q1 outlook, and also sought clarity on the OpEx dynamics in the Q1 guidance.

    Answer

    President and CEO Sean Kerins explained that the turns business was relatively stable from Q3 to Q4 and is expected to remain so in Q1. CFO Raj Agrawal detailed that OpEx has been reduced by over $200 million annually, establishing a new quarterly run rate of around $600 million as a starting point for Q1, with more savings anticipated from recent initiatives.

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    Joseph Quatrochi's questions to Arrow Electronics Inc (ARW) leadership • Q3 2024

    Question

    Joseph Quatrochi of Wells Fargo questioned the demand trends in Asia, noting a competitor had reported a stronger recovery, and asked for details on the new operating expense reduction plan, including whether the savings were net and how they would be distributed.

    Answer

    CEO Sean Kerins explained that Arrow's Asia business saw modest growth in China, driven by automotive, but noted their strategic focus on the broader industrial mass market has been slower to recover. CFO Raj Agrawal confirmed the planned $90-$100 million in annual cost savings is net and will be achieved across the entire organization through consolidation and a shift to a shared services model.

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    Joseph Quatrochi's questions to KLA Corp (KLAC) leadership

    Joseph Quatrochi's questions to KLA Corp (KLAC) leadership • Q1 2025

    Question

    Joseph Quatrochi asked if cleanroom space could be a gating factor for growth in 2026 and requested an explanation for the increased full-year gross margin guidance despite new tariff headwinds.

    Answer

    CEO Richard Wallace stated he does not see cleanroom availability as a gating factor, viewing leading-edge silicon supply as the primary governor on growth. CFO Bren Higgins explained the higher gross margin guidance is driven by a favorable product mix and scale benefits in advanced packaging, which are strong enough to more than offset cost pressures and the anticipated tariff impact.

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    Joseph Quatrochi's questions to KLA Corp (KLAC) leadership • Q4 2024

    Question

    Joseph Quatrochi from Wells Fargo & Company asked for clarification on the quarterly impact to the Services business from China restrictions and inquired about the difference in process control intensity between HBM and conventional DRAM.

    Answer

    CFO Bren Higgins advised modeling the China services impact as a one-time reduction in the March quarter, with growth resuming from that new base. He explained HBM process control intensity is significantly higher than conventional DRAM due to larger die, less redundancy, and higher reliability needs, estimating it could increase DRAM process control's share of WFE by 100-150 basis points.

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    Joseph Quatrochi's questions to KLA Corp (KLAC) leadership • Q3 2024

    Question

    Joseph Quatrochi asked for color on the process control capital intensity for the upcoming 2-nanometer node compared to 3-nanometer. He also inquired about the expected growth trajectory for the first half of 2025.

    Answer

    CEO Rick Wallace explained that 2-nanometer will drive higher process control intensity due to tighter process windows, more inspection points, and a higher mix of complex designs. CFO Bren Higgins added that new architectures like gate-all-around introduce new defect types, creating further opportunities. Regarding H1 2025, Higgins stated they see a stable environment from current run rates but deferred a full forecast to the next call.

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    Joseph Quatrochi's questions to Avnet Inc (AVT) leadership

    Joseph Quatrochi's questions to Avnet Inc (AVT) leadership • Q3 2025

    Question

    Joseph Quatrochi inquired about the drivers behind the June quarter revenue guidance, which appears weaker than some suppliers' forecasts, and asked about the corresponding inventory expectations. He also questioned the potential opportunities from tariffs for Avnet's supply chain services and the financial profile of that business.

    Answer

    CFO Ken Jacobson explained the guidance reflects weakness in the West, particularly Europe, which offsets strength in Asia's lower-margin business. He projected an inventory reduction of over $100 million for the next quarter. Both Jacobson and CEO Philip Gallagher framed tariff complexity as a strategic advantage, highlighting their global logistics footprint and mitigation efforts. Gallagher confirmed that while mitigation is the priority, tariffs are passed on to customers when necessary.

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    Joseph Quatrochi's questions to Avnet Inc (AVT) leadership • Q2 2025

    Question

    Joseph Quatrochi inquired about the balance between strategic inventory investments and general optimization, and also asked about the level of just-in-time demand seen in Q2 and assumed for Q3 guidance.

    Answer

    CEO Phil Gallagher explained that while the industrial segment has slowed, inventory in key areas like transportation and aerospace is not a concern. CFO Ken Jacobson added that overall inventory should decline, but strategic investments may moderate the pace. Regarding just-in-time demand, Gallagher noted a slight increase in turns business in Q2 but confirmed the Q3 guidance remains conservative and does not assume a significant uptick.

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    Joseph Quatrochi's questions to Avnet Inc (AVT) leadership • Q1 2025

    Question

    Joseph Quatrochi of Wells Fargo Securities inquired about the drivers of Avnet's year-over-year growth in Asia, specifically asking if it was broad-based beyond data center opportunities. He also sought clarity on the structural path for the Farnell business to return to its double-digit EBIT target and whether its performance would worsen before improving.

    Answer

    CEO Phil Gallagher confirmed that Asia's growth was broad-based, with increases in consumer, communication, and compute, and noted that the industrial market in Asia was stronger than in the West. Regarding Farnell, Gallagher expressed disappointment but reaffirmed his belief in the model's ability to return to double-digit margins, citing leadership changes, ongoing restructuring, and a focus on execution. He stated they believe Farnell is "bouncing along the bottom." CFO Ken Jacobson added that Farnell's gross margin profile has been stable for several quarters, with the primary issue being the top-line decline.

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    Joseph Quatrochi's questions to Cadence Design Systems Inc (CDNS) leadership

    Joseph Quatrochi's questions to Cadence Design Systems Inc (CDNS) leadership • Q1 2025

    Question

    Joseph Quatrochi asked about the company's development of a full-stack Agentic AI solution and which areas of the design workflow are being targeted first.

    Answer

    CEO Anirudh Devgan identified several initial targets for Agentic AI. He highlighted verification as a critical area due to its complexity, followed by implementation to enhance tools like Cerebrus. He also pointed to package/PCB design and analog migration as areas with significant potential for AI-driven automation, noting the scope extends across the entire product line.

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    Joseph Quatrochi's questions to Cadence Design Systems Inc (CDNS) leadership • Q4 2024

    Question

    Joseph Quatrochi from Wells Fargo followed up on the China outlook, asking if export restrictions impacted the RPO balance and whether the hardware refresh cycle in China should now be considered a 2026 driver.

    Answer

    CFO John Wall confirmed there was no material impact on RPO from China and that the flat 2025 forecast was based on prudence, acknowledging that China's hardware business was weaker in 2024 after a strong 2023. CEO Anirudh Devgan added that design activity in China is picking up, particularly in automotive, but it is difficult to predict how that will translate to revenue throughout the year.

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    Joseph Quatrochi's questions to Synopsys Inc (SNPS) leadership

    Joseph Quatrochi's questions to Synopsys Inc (SNPS) leadership • Q1 2025

    Question

    Joseph Quatrochi asked for an update on design activity, specifically if the rate of change for non-AI customers has stabilized or improved. He also inquired about the growth trajectory for the newly launched hardware solutions and the context for the company's record inventory levels.

    Answer

    CEO Sassine Ghazi reiterated that AI/HPC design activity is accelerating while auto and industrial roadmaps have seen delays, though he confirmed a pickup in mobile and PC designs. CFO Shelagh Glaser explained that the company is investing heavily in its new hardware platforms, where demand currently exceeds supply. This has led to a hardware sales forecast that is heavily weighted to the second half, particularly Q4, which accounts for the increase in inventory.

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    Joseph Quatrochi's questions to Applied Materials Inc (AMAT) leadership

    Joseph Quatrochi's questions to Applied Materials Inc (AMAT) leadership • Q1 2025

    Question

    Joseph Quatrochi asked about the growth expectations for the DRAM business this year, specifically when excluding the tough comparison from China-related spending in the prior year.

    Answer

    CFO Brice Hill noted that after two record years, DRAM investment continues in the rest of the world, driven by strong pull for HBM and advanced compute systems. CEO Gary Dickerson added that he is more bullish on compute memory (DRAM) than storage memory, and that HBM's higher wafer intensity provides a long-term growth tailwind.

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    Joseph Quatrochi's questions to Applied Materials Inc (AMAT) leadership • Q4 2024

    Question

    Joseph Quatrochi sought clarification on DRAM capacity additions, asking if customers are adding capacity for conventional DRAM in addition to HBM, and what is driving the sequential growth in memory for the January quarter.

    Answer

    CFO Brice Hill confirmed that customers are adding total DRAM wafer start capacity, not just for HBM. He noted that while HBM is a strong growth driver, accounting for about 10% of DRAM wafers and growing at a 30% rate, the overall DRAM market is seeing capacity increases and remains strong, contributing to the positive outlook.

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    Joseph Quatrochi's questions to Advanced Energy Industries Inc (AEIS) leadership

    Joseph Quatrochi's questions to Advanced Energy Industries Inc (AEIS) leadership • Q4 2024

    Question

    Joseph Quatrochi of Wells Fargo asked if semiconductor customers were rebuilding inventory and inquired about the average selling price (ASP) dynamics of new products like eVoS and eVerest. He also questioned the shift in the timeline for the Industrial and Medical market bottoming out and the confidence in the current outlook.

    Answer

    CEO Stephen Kelley stated it's hard to know customer inventory strategies but believes demand is now close to equilibrium. He confirmed that new products generally carry a higher price tag as they deliver more value. On the I&M market, Kelley acknowledged the recovery timeline moved out by a quarter but expressed confidence in a bottom, citing the flattening of the sequential revenue decline in Q4 and the fact that sell-in to distribution has been below sell-through for three consecutive quarters.

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    Joseph Quatrochi's questions to Advanced Energy Industries Inc (AEIS) leadership • Q3 2024

    Question

    Joseph Quatrochi of Wells Fargo asked for an update on the inventory destocking situation in the Industrial & Medical market and for an explanation of the mix dynamics affecting the Q4 gross margin guidance.

    Answer

    CEO Stephen Kelley addressed the Industrial & Medical market, noting the inventory correction began in Q4 2023 and that channel inventory should normalize in late Q4 2024 or Q1 2025, which would signal a return to growth. CFO Paul Oldham added that the 37% gross margin guidance is on track with their model, factoring in ongoing manufacturing transition costs, and mentioned a slight product mix headwind in Q3.

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    Joseph Quatrochi's questions to ON Semiconductor Corp (ON) leadership

    Joseph Quatrochi's questions to ON Semiconductor Corp (ON) leadership • Q4 2024

    Question

    Joseph Quatrochi from Wells Fargo asked for detail on which end markets or geographies are most affected by the $350-$400 million of price-sensitive revenue being exited. He also inquired about the growth outlook for AI data center revenue in 2025.

    Answer

    CEO Hassane El-Khoury clarified that the price-sensitive, noncore revenue is defined by product type (mass market) rather than by a specific region. Regarding AI data centers, he confirmed that growth is expected to continue in 2025 as design wins from the second half of 2024 ramp further. He also highlighted the newly acquired SiC JFET business and the Treo platform as key drivers for future acceleration in this market.

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    Joseph Quatrochi's questions to MKS Instruments Inc (MKSI) leadership

    Joseph Quatrochi's questions to MKS Instruments Inc (MKSI) leadership • Q4 2024

    Question

    Joseph Quatrochi of Wells Fargo asked about the performance of the optics business within the semiconductor segment in 2024 and sought clarification on why guided Q1 interest expense was up sequentially.

    Answer

    CEO John Lee characterized 2024 as a 'strong year' for the optics business, stating that it outgrew the broader lithography, metrology, and inspection subsegment. CFO Ramakumar Mayampurath clarified that the Q1 interest expense guidance appears higher because the Q4 reported number was artificially lowered by a one-time pension reclassification, and the full benefit of recent debt repricing and prepayment actions is not yet reflected in the Q1 guidance.

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    Joseph Quatrochi's questions to MKS Instruments Inc (MKSI) leadership • Q3 2024

    Question

    Joseph Quatrochi asked about the CapEx requirements for the new factory being built in Malaysia and its potential impact on free cash flow available for debt paydown. He also asked about seasonality expectations heading into the March quarter.

    Answer

    President and CEO John Lee explained the new factory supports capacity expansion and manufacturing footprint diversification. He stated that while CapEx as a percentage of revenue might rise from ~3% toward 5% in the next year or two, the business model remains low-intensity. For seasonality, he reiterated that the March quarter is typically lower due to the consumer product cycle impacting parts of their electronics business.

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    Joseph Quatrochi's questions to Lam Research Corp (LRCX) leadership

    Joseph Quatrochi's questions to Lam Research Corp (LRCX) leadership • Q1 2025

    Question

    Joe Quatrochi asked for clarification on whether the strong December quarter NAND revenue included sales to the now-restricted Chinese customer and inquired about the expected NAND capacity mix by year-end.

    Answer

    EVP & CFO Douglas Bettinger stated there was 'nothing' in the December quarter NAND revenue from the now-restricted indigenous Chinese NAND customer. CEO Timothy Archer declined to predict the rate of change for the capacity mix, noting it depends on market conditions, but affirmed that more of the installed base will be upgraded over time.

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    Joseph Quatrochi's questions to ASML Holding NV (ASML) leadership

    Joseph Quatrochi's questions to ASML Holding NV (ASML) leadership • Q4 2024

    Question

    Joseph Quatrochi asked about the feasibility of reaching the high end of the 2025 revenue guidance given tool lead times and inquired about the gross margin impact from lower-than-expected High-NA installation costs.

    Answer

    CEO Christophe Fouquet confirmed that ASML's supply plan is preparing for potential upside demand for AI capacity, and the company will decide whether to build the tools as the year progresses. CFO Roger Dassen stated that while High-NA install costs were lower in Q4, these learnings are already embedded in the 2025 guidance of 51% to 53%, and the benefit should be seen as a one-off for the quarter.

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