Kevin Cassidy

Kevin Cassidy inquired about the competitive landscape, specifically in the drone market, asking if companies are still building their own silicon or preferring Ambarella's AI capabilities, and about competition from China. He also asked if Ambarella's semi-custom ASIC design approach, similar to AMD's partnership with Meta, is finding applications for optimized SoCs for specific customer models.

Answer

President and CEO Fermi Wang noted that while DJI builds some of its own silicon, most other drone companies use external solutions, positioning Ambarella's 5nm, 4nm, and future 2nm offerings uniquely in the Chinese market. For semi-custom ASICs, Mr. Wang clarified that customers leverage Ambarella's CV4 AI accelerator, AI/IDSP, software platform, and 2nm tape-out capabilities, emphasizing their focus on edge AI SoCs with customer algorithms, not data center designs.

Kevin Cassidy questioned the competitive landscape, particularly in the drone market, asking about competition from China and whether companies are increasingly opting to work with Ambarella for AI capabilities rather than building their own devices. He also sought clarification on the applications driving the semi-custom ASIC market, specifically if it's for optimizing SoCs for certain customer models.

Answer

President and CEO Fermi Wang noted that while DJI builds some of its own silicon, most other drone companies use external solutions, and Ambarella's advanced 5nm down to 2nm offerings uniquely position them in the Chinese market. For semi-custom ASIC, he confirmed customers leverage Ambarella's CV4 AI accelerator, AI/IDSP, software platform, and 2nm tape-out capability, emphasizing their focus on edge AI SoCs with customer-specific algorithms, not data center designs.

Kevin Cassidy inquired about the extent to which Ambarella's software and development efforts for Level 2 to Level 4 automotive applications can be applied to robotics, asking if it's a relatively easy transition or if there are unique software or other issues in robotics compared to automotive.

Answer

CEO Fermi Wang explained that autonomous driving, drones, and robots share significant commonalities in functions such as sensor fusion, environmental decision-making, pattern planning, and control. He emphasized that a substantial portion of Ambarella's hardware and software investment, particularly on the sensor fusion side with perception, for autonomous driving will directly apply to future drone and other robotic applications.

Kevin Cassidy asked about the applicability of Ambarella's L2-L4 automotive software and development to the robotics market, inquiring if it's an easy transition or if unique software/issues exist in robotics compared to automotive.

Answer

CEO Fermi Wang affirmed that autonomous driving is a specialized form of robotics, and significant hardware and software investments, particularly in sensor fusion and perception for L2-L4 automotive, are directly applicable and highly reusable across future drone and other robotic applications.

Kevin Cassidy from Rosenblatt Securities inquired about the emerging robotic aerial drone market, asking about the potential for multiple companies and commercial applications like deliveries. He also asked for an update on the company's progress with 2-nanometer process technology.

Answer

CEO Fermi Wang confirmed that the drone market is a growing trend with significant volume potential, driven by the popularization of autonomy technology. He stated that Ambarella is engaged in multiple drone design activities. VP of Corporate Development Louis Gerhardy added that this market mirrors automotive, with a move toward higher levels of autonomy. Regarding process technology, Wang affirmed that the 2-nanometer project is on track, targeting customer production in early 2027.

Kevin Cassidy from Rosenblatt Securities asked if the strong product cycle could alter Ambarella's traditional revenue seasonality and sought confirmation that the new edge infrastructure SoCs are based on their transformer-capable architecture.

Answer

CEO Fermi Wang reiterated that geopolitical uncertainty makes seasonality a question mark for the current year, hence the wider guidance range, but a normal seasonal pattern is still possible. Both Fermi Wang and VP of Corporate Development Louis Gerhardy confirmed that the new edge infrastructure products leverage their third-generation CVflow AI accelerator architecture, which is designed to run advanced transformer-based models.

Kevin Cassidy asked if the 2-nanometer development would focus on products similar to the N1 or more on CV devices, and inquired if the company is testing other models besides DeepSeek due to potential restrictions.

Answer

CEO Fermi Wang clarified that they have two 2-nanometer projects underway to address two different markets: one for camera products and another for a different IoT product type. He also explained that while DeepSeek is used for demos, he views the rise of such models as a market trend and fully expects U.S. AI companies to introduce similar offerings.

Kevin Cassidy asked about the development timeline for Ambarella's 2-nanometer platform, including its expected tape-out date and target markets, and if the associated spending was already in the OpEx run rate.

Answer

President and CEO Dr. Fermi Wang projected the first 2-nanometer chip tape-out for around Q4 of fiscal 2026, targeting IoT enterprise and other IoT markets to address new AI workloads like Gen AI. CFO John Young confirmed that spending for the 2-nanometer project is already being amortized and is factored into the current OpEx run rate.

Kevin Cassidy asked how the current strong product cycle compares to past cycles in terms of differentiation and customer stickiness. He also inquired if the absence of a key distributor from the 10% customer list signaled a declining contribution from the consumer IoT segment.

Answer

CEO Fermi Wang explained that this product cycle is differentiated by the market's demand for high AI performance at low power consumption, which creates significant customer stickiness. He confirmed that the absence of the specific 10% customer was due to persistent weakness in the consumer IoT (home security) market, where growth is much slower than in enterprise, other IoT, or automotive segments.

Kevin Cassidy asked about Navitas' engagement model with hyperscalers for AI data center solutions, specifically whether they work directly or through power supply suppliers, and inquired about the timeline for installation inflection points.

Answer

CEO Chris Allexandre confirmed engagement across all models, including direct work with hyperscalers driving new architectures, and collaborations with OEMs/ODMs and merchant power companies. He reiterated that SiC growth in classic AC-DC is expected throughout 2026, with the 800V HVDC GaN inflection point tied to compact rack architecture in 2027.

Kevin Cassidy inquired about Navitas' engagement model with hyperscalers for power supplies, asking if they work directly or through existing suppliers, and sought an update on the expected inflection point for 800-volt HVDC installations.

Answer

CEO Chris Allexandre explained that Navitas works with hyperscalers, OEMs/ODMs, and merchant power companies, as hyperscalers drive new architectures. He mentioned co-development of the 10kW board with a leading customer. Regarding the inflection point, he reiterated two growth streams: SiC growth in AC-DC for current data centers throughout 2026, and the 800V HVDC discontinuity (GaN replacing silicon) linked to compact megawatt rack architecture changes, anticipated around 2027, with potential earlier GaN use in 48V IBC.

Kevin Cassidy asked if the NVIDIA partnership announcement has accelerated GaN adoption in existing 48V data centers and questioned the inventory strategy for the TSMC-to-PowerChIP foundry transition.

Answer

CEO Gene Sheridan responded that while it's early, he is hopeful that proving GaN for 800V systems could create upside in current 48V data centers. Regarding the foundry transition, he confirmed that TSMC is committed to supplying products through 2027, and Navitas can execute last-time buys if needed, ensuring a seamless supply chain for customers during the migration.

Kevin Cassidy asked for details on the 40 data center design wins, specifically the distribution across different power supply levels (2.7kW to 8.5kW) and whether these deployments are tied to specific GPU upgrade cycles like Blackwell or Reuben.

Answer

CEO Gene Sheridan explained that while initial designs were broad, the sweet spot is now concentrating at higher power levels, such as 4.5kW for CRPS and 8.5kW for ORV3, where GaN and SiC benefits are maximized. He noted that new designs are increasingly focused on the next generation of processors, like the 'Reuben-class', and are not exclusively tied to NVIDIA, with other server and AI processors also in the mix.

Kevin Cassidy inquired about the new low-voltage GaN dual-sourcing partnership with Infineon, asking about IP licensing, customer demand drivers, and opportunities for product differentiation. He also asked about the impact of a potential smartphone market shift towards entry-level devices.

Answer

CEO Eugene Sheridan confirmed a broad-based GaN cross-license agreement with Infineon, which gives customers confidence and accelerates adoption by providing a dual-source option, a common request. He clarified that while specs and footprints will be common, Navitas will still differentiate through system design support and other sole-source solutions. Regarding smartphones, Sheridan stated that the key factor is charging power, not phone price, noting that Navitas is successfully bringing 45W+ GaN fast chargers to lower-cost phones, making it a growth area.

Kevin Cassidy asked about the trend in pay TV subscriber loss, whether it's slowing or reaching an asymptote, and the competitive landscape and differentiation of Adeia's RapidCool technology.

Answer

Paul Davis (President and CEO) confirmed that subscriber declines are built into forecasts, with some moderation expected, and highlighted the company's successful diversification into non-pay TV recurring revenue. Regarding RapidCool, Mr. Davis explained that Adeia licenses its technology portfolio-wide, emphasizing RapidCool's 'plug and play' nature and its applicability in both logic and HBM memory as key differentiators.

Kevin Cassidy inquired about the trends in pay-TV customers, specifically if subscriber loss is slowing or reaching an asymptote, noting Charter's recent subscriber increase. He also asked about the competitive landscape for RapidCool technology and its differentiation.

Answer

Paul Davis, President and CEO, confirmed seeing moderation in pay-TV subscriber declines, which are built into forecasts (30-45% of revenue), and highlighted the company's successful diversification into non-pay-TV recurring revenue. Regarding RapidCool, Mr. Davis explained that Adeia licenses its technology rather than competing directly, emphasizing RapidCool's 'plug and play' nature, compatibility with existing liquid cooling infrastructure, and applicability in both logic and HBM memory.

Kevin Cassidy of Rosenblatt Securities questioned whether the new RapidCool technology is targeted for data centers or the network edge. He also asked for details on the ST Microelectronics deal, specifically its connection to hybrid bonding and chiplets, and the potential for similar deals with other semiconductor companies.

Answer

CEO & Director Paul Davis clarified that RapidCool is initially targeting data centers but has a roadmap for other applications. He confirmed the ST Microelectronics agreement is a portfolio license driven by Adeia's hybrid bonding technology and noted the broad industry adoption of hybrid bonding for both logic chiplets and high-bandwidth memory, signaling a strong market trend.

Kevin Cassidy inquired about the new U.S. professional sports league deal, its potential as a breakthrough to sign other leagues, and its possible extension into sports betting. He also asked if the newly acquired microLED and imaging portfolios included existing license revenue.

Answer

CEO Paul Davis confirmed the sports league deal is a significant achievement within their OTT vertical and that they believe it could lead to more agreements with similar entities. Regarding the acquired IP, Davis clarified that the portfolios do not currently have revenue streams attached but represent a mid-to-long-term growth opportunity, particularly the microLED assets which have synergies with the semiconductor industry and AI applications.

Kevin Cassidy asked about the scale of CEVA's NPU pipeline, including the number of engagements compared to the previous year and the end market exposures. He also sought clarification on whether the PC OEM NPU win involved a separate chip or integration within a CPU package.

Answer

CEO Amir Panush highlighted the significant market share gain in AI in 2025, with over 10 NPU deals and a growing pipeline across consumer, computing, embedded MCU, industrial, and automotive Smart Edge markets. He clarified that the PC OEM NPU win involves CEVA delivering the core NPU functionality for integration into the OEM's SoC platform, with CFO Yaniv Arieli confirming it as a separate NPU chip.

Kevin Cassidy inquired about the scale of CEVA's NPU pipeline, including the number of engagements compared to the previous year and the specific end market exposures. He also sought clarification on whether the PC OEM NPU win involved a separate chip or an integrated solution within the CPU package.

Answer

CEO Amir Panush expressed encouragement regarding the 2025 execution and AI penetration, noting over 10 deals captured and a growing pipeline across consumer, computing, embedded MCU, industrial, and automotive smart edge markets. CFO Yaniv Arieli confirmed the PC OEM NPU is a separate chip integrated into the SoC platform.

Kevin Cassidy of Rosenblatt Securities inquired about the potential impact of increased NPU licensing on future royalty revenues, asking if the higher value of these ICs would lead to accelerated royalty growth. He also asked about the timing from licensing to royalty for these more complex designs and whether the product lifecycle for AI-related royalties might be shorter.

Answer

CEO Amir Panush confirmed that NPU deals feature superior economics and are expected to generate a meaningful increase in royalty per unit. He explained that the time-to-royalty is typically 18 to 24 months, similar to consumer products, and can even be shorter as customers are eager to deploy AI. Panush noted that the royalty tail's duration is dependent on the end market, with infrastructure and automotive applications having much longer lifecycles than typical consumer devices.

Kevin Cassidy of Rosenblatt Securities inquired about the specifics of the new ADAS NPU win, asking if it was with a Tier 1 supplier or tied to a secured OEM program. He also questioned if the ASP uplift for WiFi 7 would be similar to or greater than the transition to WiFi 6, and later asked how smaller, low-cost LLMs are affecting demand for CEVA's NPU IP.

Answer

CEO Amir Panush clarified the ADAS win is with a Tier 1 supplier for a next-generation platform that will be sold to multiple OEMs, validating the technology's maturity. He confirmed that WiFi 7 is expected to provide another ASP uplift on top of the significant increase already seen from the transition to WiFi 6. Panush also explained that the trend of smaller, optimized LLMs is a major positive catalyst, driving AI inference to edge devices and increasing demand for CEVA's power-efficient NPU solutions.

Kevin Cassidy of Rosenblatt Securities inquired about the potential for Ceva's NPU technology to be integrated into MCU customer designs alongside its wireless IP, and also asked for details on the timing and revenue ramp for the new long-term agreement with a U.S. mobile OEM.

Answer

Amir Panush, CEO, confirmed a clear trend of MCU players integrating AI, creating significant opportunities for Ceva's NeuPro-Nano NPUs to be licensed alongside its connectivity IP. Regarding the U.S. mobile OEM, Panush stated that Ceva could not provide specific details on the royalty ramp-up timing or volume, as that is determined by the customer, but he expressed strong optimism about the long-term growth opportunity.

Kevin Cassidy of Rosenblatt Securities asked for clarification on the gross margin impact from 5G platform customization, its duration, and whether the opportunity includes integrating Wi-Fi.

Answer

CFO Yaniv Arieli explained the temporary gross margin dip is due to allocating R&D resources for strategic 5G customization work, not a change in the business model, with annual non-GAAP margins remaining around 89-90%. CEO Amir Panush added that this deepens partnerships and drives better long-term economics. He confirmed there are significant opportunities to add more IP, including Wi-Fi, Bluetooth, and AI, to these platforms, increasing CEVA's content per device.

Kevin Cassidy questioned if there's a Bitcoin price threshold at which Bitdeer would slow its mining activity due to higher costs, and whether there's a viable market for N-1 GPU clusters (older GPUs) in the GPU-as-a-Service offering.

Answer

Haris Basit, Chief Strategy Officer of Bitdeer Technologies Group, confirmed a price point exists but stated they haven't reached it, citing improving fleet efficiency and selective shutdown of older machines. He also affirmed demand for older GPUs, though the company primarily pursues the latest models.

Kevin Cassidy asked if there's a Bitcoin price point at which the company would slow its mining activity due to higher costs relative to hash price. He also questioned the market demand for N-1 GPU clusters (older GPUs) in the GPU-as-a-Service segment.

Answer

Haris Basit, Chief Strategy Officer, confirmed such a price exists but stated it's much lower than current levels and hasn't been reached, noting that improving fleet efficiency and energy prices allow continued operation, with older machines being turned off first. He also confirmed demand for older GPUs in GPU-as-a-Service, though the company typically pursues the latest models.

Kevin Cassidy asked about the customer qualification timeline for the SEALMINER A2 rigs, whether the A3 qualification process would be faster, and the number of customers receiving the initial A2 shipments.

Answer

Chairman and CEO Jihan Wu stated that the committed shipping timeline already accounts for necessary customer qualification. He noted the process from chip verification to mass production takes about six months. Chief Strategy Officer Haris Basit added that the company had previously disclosed that the initial A2 shipments were for over 60 customers.

Kevin Cassidy from Rosenblatt Securities inquired about the customer qualification timeline for the SEALMINER A2 and A3 rigs and asked how many customers were part of the initial A2 shipment.

Answer

Chairman and CEO Jihan Wu stated that the committed shipping timeline for the A2 already accounts for the necessary customer qualification period and that the A3 development cycle from chip verification to mass production is about six months. Chief Strategy Officer Haris Basit confirmed that the initial A2 orders involved more than 60 customers.

Kevin Cassidy of Rosenblatt Securities Inc. asked for a definition of a Tier 3 data center and its target customers, and for a comparison of the potential profitability between operating an HPC/AI data center versus a Bitcoin mining facility.

Answer

Head of Capital Markets Jeff LaBerge explained that the goal was suitability for leading AI applications, which entails requirements far exceeding Bitcoin mining to protect the large investment. He noted that a direct profitability comparison is difficult as it depends heavily on future hash price assumptions, and the decision also involves strategic diversification for shareholders, not just pure ROI.

Kevin Cassidy from Rosenblatt Securities asked about the Bitcoin price breakeven point for Canaan's customers and its changes, as well as foundry availability and the cost difference for A16 wafers compared to A15.

Answer

CFO James Jin Cheng stated that the all-in payback level for Bitcoin mining is around $100,000-$110,000, while the marginal shutdown level for Canaan's A15 Pro is about $37,000 and around $30,000 for the A16 series. Chairman and CEO Nangeng Zhang confirmed securing critical foundry capacity despite tight global conditions, noting A16 unit costs face upward pressure but will be offset by yield improvements and design optimizations.

Kevin Cassidy inquired about the breakeven Bitcoin price for Canaan's customers and the company's A16 foundry availability and cost differences compared to A15.

Answer

James Jin Cheng, CFO, explained two breakeven points: an all-in payback level of $100,000-$110,000 Bitcoin price (or $55 per PH per day hash price) and a marginal shutdown level based on energy cost. He provided shutdown prices for various machines, including Canaan's A15 Pro at $37,000 and A16 at $30,000, given an average electricity cost of $0.043 globally. Nangeng Zhang, Chairman and CEO, stated that Canaan secured foundry capacity through long-term partnerships despite tight global capacity. He noted that A16 unit costs face upward pressure in wafers, packaging, and components compared to A15, which they plan to offset through yield improvements and system design.

Kevin Cassidy inquired about Canaan's order visibility into Q1 2026 and whether North American demand for mining machines is less sensitive to Bitcoin price fluctuations compared to other regions.

Answer

CFO Jin James Cheng explained that Q4 is a peak quarter, and Q1 is traditionally a low season due to holidays, leading to potential revenue decreases and cautious behavior from smaller customers amid Bitcoin price turbulence. He noted that North American institutional players, who account for a significant portion of global hash rate, tend to be less price-sensitive in the short term due to their long-term strategic goals. Chairman and CEO Nangeng Zhang added that while Bitcoin volatility causes some short-term pauses, the underlying demand trend over multi-year timeframes is limited, and North American demand has shown strong resilience.

Kevin Cassidy inquired about Canaan's order visibility into Q1, following strong Q4 guidance, and whether the U.S. market's demand rebound is less sensitive to Bitcoin price fluctuations compared to other regions.

Answer

CFO Jin James Cheng explained that Q1 is traditionally a low season due to holidays, potentially leading to lower revenue, and noted that Bitcoin price turbulence could impact smaller customers. He and Chairman and CEO Nangeng Zhang highlighted North America as a leading region with institutional players focused on long-term goals, making them less sensitive to short-term price volatility, despite tariff impacts.

Kevin Cassidy of Rosenblatt Securities questioned the impact of Bitcoin miners pursuing AI and HPC co-location on mining rig demand, and also requested an update on the next-generation A16 ASICs and cooling technology trends.

Answer

CEO Nangeng Zhang described AI/HPC and Bitcoin mining as complementary, noting that mining's flexible power consumption can stabilize grids for AI workloads. Regarding technology, he stated that while air-cooled systems are still dominant, water and immersion cooling are growing fast, particularly with institutional miners like CleanSpark. Zhang confirmed the A16 series is currently in the chip packaging and testing stage, with a formal launch planned after full machine testing is complete.

Kevin Cassidy of Rosenblatt Securities questioned the impact of miners pursuing AI and HPC co-location on Bitcoin mining rig demand, and asked for an update on the next-generation A16 ASICs and cooling technology trends.

Answer

CEO Nanjing Zhang stated that AI/HPC and Bitcoin mining are complementary, as mining's flexible power consumption can stabilize energy grids for AI workloads. Regarding technology, he confirmed the A16 ASIC is in the final chip assembly and testing stage. He also noted that while air-cooled systems are prevalent, demand for water-cooled and immersion cooling is growing, particularly among large institutional miners.

Kevin Cassidy inquired about the equipment pricing trends (ASP) during Q1 amid Bitcoin price volatility and the outlook for Q2. He also asked how Bitcoin miners shifting to HPC and AI hosting is impacting Canaan's total addressable market.

Answer

CFO Jin James Cheng explained that Q1's average selling price (ASP) rose to $10.5/TH due to strong early demand for the A15 series. He expressed optimism for Q2's ASP but remained cautious for Q3 and Q4 due to U.S. tariff pressures. CEO Nangeng Zhang addressed the AI question, stating he views miners' pivots to AI as 'experimental quick seeks' rather than core strategic shifts.

Kevin Cassidy inquired about the company's ASIC wafer orders with its foundry partner relative to its customer backlog, the architectural changes in the A16 ASIC contributing to its performance improvement, and the expected performance of an immersion-cooled version.

Answer

CEO Nangeng Zhang stated that the company is gradually increasing production and has not ordered at maximum capacity, allowing flexibility to allocate machines to its own mining operations if demand weakens. He attributed the A16's performance leap to cutting-edge technology and numerous small design innovations, a process he called design-technology co-optimization (DTCO). He also acknowledged the growing market trend towards liquid cooling due to higher machine energy density and the need for longer hardware lifecycles.

Kevin Cassidy asked for a comparison of the current demand environment to the period following the 2020 Bitcoin halving and inquired about Canaan's operational readiness to meet the anticipated demand surge.

Answer

CEO Nangeng Zhang explained that while the overall demand rebound pattern is similar to 2020, the current market is more mature with more professional customers. To meet demand, he stated Canaan secured production capacity with advanced foundry orders, improved yield rates, and raised $80 million in recent financing ($50M + $30M) to support the supply chain and mining investments. He also noted that R&D for the next-generation A16 series is on track.

Kevin Cassidy inquired about opportunities for wireless connectivity in PC and the state of the enterprise PC market, as well as Synaptics' competitors in the IoT wireless connectivity market and its growth relative to the market.

Answer

Rahul Patel, President and CEO, noted that the enterprise PC market is benefiting from a gradual refresh and market share gains, but Synaptics will not pursue wireless connectivity in PC due to it being a platform play. He highlighted Synaptics' significant investment in wireless connectivity (e.g., 500 engineers on Wi-Fi 8) and its differentiation by integrating Wi-Fi 7 into MCUs/processors, which competitors lack.

Kevin Cassidy asked about opportunities for wireless connectivity in PC and the outlook for the enterprise PC market refresh, as well as Synaptics' competitors in the IoT wireless connectivity market and its growth relative to the market.

Answer

Rahul Patel, President and CEO, noted that enterprise PC is benefiting from a gradual refresh and market share gains, but they would not pursue wireless connectivity in PC due to it being a tightly built, non-margin-conducive platform play. He highlighted Synaptics' significant investment in wireless connectivity (e.g., 500 engineers on Wi-Fi 8) and its differentiation by integrating Wi-Fi 7 into MCUs/processors, which competitors lack, and also mentioned their standalone Wi-Fi 7/Bluetooth/BLE/Thread SoC.

Kevin Cassidy of Rosenblatt Securities asked new CEO Rahul Patel to compare his IoT strategy for Synaptics with his previous work at Qualcomm and inquired if Synaptics might need to acquire additional technologies to complete its solutions.

Answer

President & CEO Rahul Patel explained that Synaptics is uniquely positioned with core capabilities in mixed-signal, processors, and wireless connectivity, which are the key building blocks for IoT systems. He highlighted the plan to create integrated solutions, leveraging the Google Research partnership for Edge AI. Regarding M&A, Patel stated a disciplined approach, prioritizing organic growth but remaining open to inorganic opportunities that could accelerate the core IoT business.

Kevin Cassidy from Rosenblatt Securities asked about the competitive landscape for low-power Wi-Fi 7 in IoT applications and whether Synaptics had a unique approach. He also inquired if the introduction of optimized LLMs like DeepSeek was increasing customer demand for the Astra AI platform.

Answer

Venkat Kodavati, SVP of Wireless, stated that Synaptics was the first to market with a Wi-Fi 7 solution for IoT, using an advanced process node and signal processing to achieve very low power, giving them a competitive advantage. Interim CEO Ken Rizvi and Vikram Gupta, SVP of IoT Processors, confirmed that new, efficient LLMs are increasing interest and driving customer engagements for the Astra platform by making advanced AI on the edge more feasible.

Kevin Cassidy from Rosenblatt Securities asked about the production timeline for new designs in the Android and AR/VR markets following the Broadcom deal, and questioned how the expanded wireless portfolio could create pull-through for Synaptics' AI processors.

Answer

Interim CEO Ken Rizvi stated that the full $40 million+ revenue run-rate from the Broadcom deal will begin in the June quarter, with opportunities to ramp with new customers in calendar '26 and '27. SVP of Wireless Venkat Kodavati highlighted the acquisition of a skilled engineering team. SVP of IoT Processors Vikram Gupta explained that the combined processor and connectivity portfolio creates superior solutions, with the strong wireless offerings now creating pull for their processor products.

Kevin Cassidy from Rosenblatt Securities asked for a comparison of the current Wi-Fi 7 upgrade cycle to previous Wi-Fi transitions and questioned the company's end-market exposure for IoT Wi-Fi, specifically between consumer and industrial markets.

Answer

President and CEO Michael Hurlston described the Wi-Fi 7 adoption cycle as consistent with past upgrades, expecting a rapid step-up to 20-25% penetration in IoT, followed by a slower multi-year climb to 50-60%. He and Head of Investor Relations Munjal Shah clarified that Synaptics' Wi-Fi exposure is predominantly consumer (around 65%) and enterprise (around 35%), with very little exposure to the industrial or automotive markets at present.

Kevin Cassidy inquired about the supply chain issue, asking if there would be a catch-up in Q2 to recover lost Q1 revenue or if it represented lost market share. He also asked for a quantification of the revenue impact.

Answer

Luc Seraphin (CEO, Rambus) explained that a back-end manufacturing issue was identified and resolved in Q4, affecting a low number of parts. He confirmed no lost market share and expected a strong recovery in Q2, with 2026 product revenue still on track to grow faster than the market. Desmond Lynch (CFO, Rambus) quantified the Q1 revenue impact as approximately low double-digit millions.

Kevin Cassidy (Rosenblatt) inquired about the supply chain issue, specifically if the Q1 revenue loss would be recovered in Q2 or if it represented lost market share.

Answer

CEO Luc Seraphin provided a detailed explanation of the Q4 back-end manufacturing issue, its resolution, and the measures taken, confirming no reputational damage and that the issue was behind them. CFO Desmond Lynch quantified the Q1 impact as low double-digit $ million and expected strong recovery and inventory replenishment by Q2.

Kevin Cassidy asked if there's concern about servers despecing due to rising DRAM prices, especially with HBM prioritization, or if strong AI demand would prevent this. He also inquired about the bell curve of DDR5 shipments across generations and its impact on ASPs going forward.

Answer

Luc Seraphin (CEO) stated Rambus is historically agnostic to DRAM pricing and believes the industry will manage arbitrage between memory types, not expecting DRAM pricing to impact demand for Rambus products. Desmond Lynch (CFO) added that channel inventory for Rambus chips remains lean, attributing it to multiple DDR5 generations and avoiding past DDR4 over-ordering. Desmond Lynch (CFO) noted that in Q3, shipments were predominantly 2nd generation DDR5 with growing 3rd generation volumes, a trend expected to continue in Q4. He confirmed a pricing bump when transitioning to new generations, which positively impacted Q3 gross margins (up 300 basis points due to product mix and manufacturing savings), expressing confidence in Rambus's market share and leadership.

Kevin Cassidy asked if rising DRAM prices would lead to server despecing or if strong AI demand would prevent it. He also inquired about the bell curve of DDR5 shipments across generations and its impact on Average Selling Prices (ASPs) going forward.

Answer

Luc Seraphin (CEO, Rambus Inc.) stated that Rambus is historically agnostic to DRAM pricing and does not expect it to impact demand for their products. Desmond Lynch (CFO, Rambus Inc.) added that channel inventory for Rambus's chips remains lean, attributing this to multiple DDR5 generations and avoiding past DDR4 over-ordering. Regarding DDR5 shipments, Mr. Lynch noted that Q3 saw a predominance of second-generation DDR5, with growing contributions from the third generation, a trend expected to continue in Q4. He confirmed that transitions between generations typically result in an ASP bump, which positively impacted Q3 gross margins by 300 basis points due to product mix and manufacturing savings.

Kevin Cassidy from Rosenblatt Securities inquired about how the growth in the AI ASIC (XPU) market is affecting demand for Rambus's silicon IP. He also asked about the impact of recent DDR4 end-of-life announcements on the company's business.

Answer

CEO Luc Seraphin stated that the AI ASIC boom is accelerating demand for high-speed memory interfaces and connectivity IP, leading to strong customer engagement for HBM4, PCIe 7, and security IP solutions. Regarding DDR4, Seraphin noted it has a minimal impact as DDR4 sales have been very limited for several quarters and are expected to remain low or decrease.

Kevin Cassidy asked if the recent strength in Silicon IP revenue is expected to continue and inquired about the anticipated adoption rate for MRDIMMs on new CPUs.

Answer

CFO Desmond Lynch indicated that Q2 Silicon IP revenue is expected to be relatively flat with Q1. CEO Luc Seraphin noted it is still early to predict a precise MRDIMM adoption rate but explained its adoption will be driven by high-end systems, especially for AI, that require a bridge to DDR6-level capacity and bandwidth.

Kevin Cassidy inquired about the breadth of the customer base for next-generation HBM IP and asked about the market opportunity for Rambus modules in ARM-based server CPU platforms.

Answer

CEO Luc Seraphin explained that for leading-edge IP like HBM4, the company engages with a smaller, more advanced set of customers. He also stated that the buffer chip business is agnostic to CPU architecture (x86 vs. ARM) because it serves the standard DIMM memory interface, which is common to both.

Kevin Cassidy of Rosenblatt Securities inquired about the Q3 variance between contract revenue and licensing billings, the revenue recognition timing for the new HBM4 controller IP, and the expected market adoption for MRDIMM versus standard RDIMM.

Answer

CFO Desmond Lynch clarified that the Q3 revenue variance was a classification shift where higher 'off-the-shelf' IP sales boosted licensing billings, with total Silicon IP revenue remaining on track. CEO Luc Seraphin explained that HBM IP revenue is recognized upon delivery, not production, and positioned MRDIMM as a high-bandwidth solution for applications like AI that will coexist with, not replace, the standard RDIMM market.

Kevin Cassidy asked about the impact of improved HBM4 yields on process technology cadence, specifically if 1-gamma would be qualified for HBM4, and inquired about the flexibility and lead times required to change wafer allocation between HBM, low power, and high-performance products within the manufacturing process.

Answer

Manish Bhatia (EVP of Global Operations) clarified that HBM4 is on the 1-beta process technology, leveraging common architectures for faster yield ramps, and confirmed that the 12-month cadence for new HBM solutions remains unchanged. He explained that while processes are shared, unique designs mean allocation changes take one process cycle time. Sumit Sadana (Chief Business Officer) specified a lead time of approximately five months for fab changes, including front-end and back-end processes. Mark Murphy (CFO) emphasized the value of stability for complex HBM products on the 1-beta node.

Kevin Cassidy asked how the expected faster HBM4 yield ramp compared to HBM3 affects Micron's process technology cadence and production longevity. He also inquired about the flexibility and speed with which Micron can change wafer allocation between HBM, low power, and high-performance products, and how far into the process technology this change can occur.

Answer

Manish Bhatia (EVP of Global Operations) clarified that both HBM3E and HBM4 are on the 1-beta process technology, leveraging common assembly architecture and process learnings for faster HBM4 yield ramp. He stated that HBM4 will be on 1-beta and the cadence of customer platforms remains rapid. Regarding wafer allocation, he explained that while processes are shared, designs are unique, so changes take one process cycle time. Sumit Sadana (Chief Business Officer) added that customers are typically given a 5+ month lead time for changes, while Mark Murphy (CFO) emphasized extensive planning and the value of 1-beta's stability for HBM.

Kevin Cassidy inquired about discussions for long-term agreements with clients, given the current supply-demand dynamics favoring demand. He also asked if Micron's decision to exit managed NAND for the smartphone market was due to lower-cost suppliers and if it impacted DRAM sales to those customers.

Answer

Sumit Sadana, Chief Business Officer, confirmed interest in long-term agreements but stated Micron is being thoughtful about terms due to factors like U.S. manufacturing, potential tariffs, and the significant shift towards data center demand. He clarified that exiting managed NAND was driven by ROI considerations, as the mobile NAND market did not offer robust profitability, allowing Micron to concentrate resources on higher-ROI areas like data center SSDs. Sumit Sadana also noted that while customers were not pleased with the exit, Micron maintains strong DRAM relationships and supported their transition on the NAND side.

Kevin Cassidy inquired about discussions regarding long-term agreements with clients, considering the favorable supply-demand dynamics, U.S. manufacturing, and potential tariffs. He also asked if the decision to exit managed NAND for the smartphone market was due to lower-cost suppliers and if it impacts DRAM sales to those customers.

Answer

Sumit Sadana, EVP and Chief Business Officer, confirmed interest in long-term agreements but stated Micron would be thoughtful about terms, considering U.S. manufacturing, potential tariffs, and the significant shift towards data center demand. Regarding managed NAND, he clarified it was not about lower-cost suppliers but about improving ROI for Micron, as the mobile NAND market did not offer robust profitability. He stated that while customers were not happy about the exit, Micron maintains strong DRAM relationships and continues to be a robust DRAM supplier, having supported customers through the NAND transition.

Kevin Cassidy inquired about discussions for long-term agreements with clients, given the favorable supply-demand dynamics. He also asked if Micron's decision to exit managed NAND for the smartphone market was due to a lower-cost new supplier, and how this exit impacts smartphone customers and DRAM sales to them.

Answer

Sumit Sadana, EVP and Chief Business Officer, acknowledged interest in long-term agreements and past experimentation, stating that Micron will be thoughtful, considering U.S. manufacturing, potential tariffs, and the significant shift towards data center demand. He clarified that the exit from managed NAND was driven by ROI considerations, as NAND profitability has been lower than DRAM, and the company chose to reallocate resources to higher-ROI areas like data center SSDs. Mark Murphy, CFO, added that the NAND business completed a second year of positive free cash flow. Sumit Sadana noted that while customers are not pleased with the exit, Micron maintains strong relationships and continues to be a robust DRAM supplier, where customers have fewer choices.

Kevin Cassidy inquired about the status of Penguin Solutions' hyperscale customer project, asking if future hardware deployments should be excluded from forecasts, and also questioned Penguin Solutions' potential involvement in SK Telecom's reported business with OpenAI in Korea. He also sought clarification on the recognition timeline for a $34.6 million deal.

Answer

Mark Adams, President and CEO, clarified that the hyperscale project is not over, with ongoing services and future development discussions, but no non-service hardware revenue is anticipated for fiscal 2026. Nate Olmstead, SVP and CFO, confirmed the assumption of no hyperscale hardware revenue for FY2026. Regarding SK Telecom and OpenAI, Mark Adams stated they could not comment on future opportunities but highlighted the successful, rapid international deployment with SK Telecom. Nate Olmstead added that the $34.6 million portion was recognized in Q4 FY2025, with more expected in FY2026.

Kevin Cassidy inquired about the status of Penguin Solutions' hyperscale customer project, specifically if hardware deployments were concluded or if future opportunities existed. He also asked about Penguin's potential involvement in SK Telecom's relationship with OpenAI and the recognition timeline for the $34.6 million SK Telecom deal.

Answer

Mark Adams, President and CEO, clarified that the hyperscale project is not over, with ongoing services and discussions for future development, though no non-service hardware revenue is anticipated for FY26. He could not comment on the SK Telecom/OpenAI relationship but highlighted the SK Telecom implementation as a significant international deployment. Nate Olmstead, SVP and CFO, confirmed the $34.6 million portion was recognized in Q4, with more expected in FY26, and emphasized the strong services component of the SK Telecom relationship.

Kevin Cassidy of Rosenblatt Securities inquired about the five new customer bookings in Advanced Computing, asking about the sales cycle, partnership involvement, and the mix of hardware versus software. He also sought more details on the strategic collaboration with SK Telecom and SK Hynix, including its geographic scope and progress on AI data center initiatives.

Answer

President & CEO Mark Adams explained that new customer sales cycles are typically 12-18 months and involve integrated solutions where hardware revenue is recognized upfront, followed by software and services over time. Adams also confirmed the SK partnership is progressing well, with early memory wins with SK Hynix and promising joint opportunities with SK Telecom on global AI data center infrastructure.

Kevin Cassidy of Rosenblatt Securities inquired about the five new customer bookings in Advanced Computing, asking about their origin (partnerships vs. direct), sales cycle length, and the mix of hardware versus software and services. He also requested more details on the strategic collaboration with SK Telecom, including its geographic scope and specific opportunities being pursued.

Answer

Mark Adams, President & CEO, explained that the new customer sales cycles are typically 12-18 months, with bookings around the 12-month mark. He reiterated that these integrated solutions involve upfront hardware revenue recognition, which is lower margin, followed by software and services revenue recognized over time. Regarding SK Telecom, Adams stated the partnership is progressing well, with global opportunities in AI data center infrastructure, and noted early business successes with SK Hynix on system-level memory products.

Kevin Cassidy of Rosenblatt Securities asked for the reasoning behind the tightened full-year 2025 guidance, particularly the reduction at the high end, and inquired about the status of the supply chain and potential manufacturing constraints.

Answer

CFO Harminder Sehmi explained the updated 2025 guidance is not due to supply chain issues but reflects a clearer understanding of customer deployment schedules for the year. He also confirmed the 2026 revenue outlook remains unchanged. Sehmi further stated that the company is not facing supply chain challenges, noting their 14nm chip does not face capacity constraints with their foundry partner, Samsung.

Kevin Cassidy of Rosenblatt Securities asked for the reason behind tightening the 2025 revenue guidance, particularly lowering the high end, and inquired about the stability of the supply chain for manufacturing.

Answer

CFO Harminder Sehmi explained the guidance adjustment reflects more precise customer deployment schedules, not supply chain issues. He confirmed the 2026 outlook is unchanged. He also noted the supply chain is stable, with no capacity challenges for their 14nm chip at Samsung Foundry and that component orders were placed in advance.

Questioned the composition of the sales pipeline between robotaxi programs and L3 programs, and asked about the potential market size for smart applications and whether Innoviz plans to increase investment in software for that space.

Answer

The pipeline is described as roughly 50-50 between traditional OEMs focusing on L3 and technology companies developing L4 platforms for robotaxis and other vehicles. For smart applications, Innoviz leverages its existing automotive-grade Perception Software and partners with integrators for application-specific layers, making the model scalable without significant new software investment for each vertical.

Kevin Cassidy of Rosenblatt Securities questioned how falling Bitcoin prices might alter the company's mining strategy and asked if there were any U.S. customs issues delaying the final 10% of its new miner deployment.

Answer

CEO Paul Prager confirmed there were no customs issues with the miners. He stressed that the company's long-term strategy is not dictated by Bitcoin's price, as the primary focus is building a premier HPC/AI data center business. The decision to convert mining capacity will be driven by strong HPC customer demand rather than short-term crypto market fluctuations.

Kevin Cassidy sought clarification on whether the new redundant power infrastructure is exclusively for the HPC colocation facilities and asked about the deployment plan for the mining machines acquired from the Nautilus transaction.

Answer

CFO Patrick Fleury confirmed that the redundant power is principally focused on the HPC operations, as bitcoin mining is a more flexible load that does not require the same level of uptime. He also explained that the more efficient miners from the Nautilus deal were installed at Lake Mariner to upgrade the fleet, while the less efficient miners were sold for cash.

Kevin Cassidy of Rosenblatt Securities inquired about the drivers behind increased bookings for EMI Interconnect Solutions, the visibility of these bookings, and potential synergies from the Spacecraft Components acquisition, including employee leverage and engineering staff composition.

Answer

Executive Fabrizio Battaglia attributed the rise in EMI bookings to geopolitical strife driving demand in aerospace and defense, noting that visibility extends about two quarters. Regarding the Spacecraft acquisition, Battaglia confirmed Mobix Labs will seek synergies by combining Spacecraft's manufacturing capabilities with Mobix's go-to-market strategy. He also specified that less than 5% of Spacecraft's employees are engineers.

Kevin Cassidy of Rosenblatt Securities inquired about the drivers for increased bookings in EMI Interconnect Solutions, the forward visibility of this demand, and the potential synergies from the Spacecraft Components acquisition, particularly regarding employee leverage.

Answer

Executive Fabrizio Battaglia explained that heightened geopolitical strife is driving increased demand and requests for products in the aerospace and defense sectors, which are key markets for EMI solutions. He stated that visibility for these bookings typically extends out for two quarters. Regarding the Spacecraft acquisition, Battaglia noted that Mobix Labs will create synergies by combining Spacecraft's manufacturing capabilities with Mobix's go-to-market strategy and confirmed that less than 5% of Spacecraft's employees are engineers.

Kevin Cassidy of Rosenblatt Securities inquired about the drivers behind increased bookings for EMI Interconnect Solutions and the potential for operational leverage from the 150 employees in the planned Spacecraft Components acquisition.

Answer

Executive Fabrizio Battaglia attributed the rise in EMI bookings to heightened geopolitical strife, which is driving demand in the aerospace and defense sectors, noting that visibility for these orders is typically two quarters out. Regarding the Spacecraft acquisition, Battaglia confirmed that Mobix Labs plans to create synergies by combining Spacecraft's manufacturing capabilities with Mobix's go-to-market strategy and stated that less than 5% of Spacecraft's employees are engineers.

Kevin Cassidy of Rosenblatt Securities inquired about the drivers for increased bookings in EMI Interconnect Solutions, the forward visibility for this demand, and the potential operational leverage from the planned Spacecraft Components acquisition.

Answer

Executive Fabrizio Battaglia attributed the increased EMI bookings to heightened geopolitical strife driving demand in the aerospace and defense sectors, noting that visibility is typically two quarters out. He explained that synergies with Spacecraft would involve combining their manufacturing capabilities with Mobix Labs' go-to-market strategy. He also stated that less than 5% of Spacecraft's employees are engineers.

Kevin Cassidy inquired about the drivers behind increased bookings for EMI Interconnect Solutions, the visibility of this demand, and potential synergies from the Spacecraft Components acquisition, including employee leverage and engineering staff composition.

Answer

Executive Fabrizio Battaglia attributed the EMI booking increase to geopolitical strife driving aerospace and defense demand, with visibility extending about two quarters. Regarding the Spacecraft acquisition, he confirmed plans to find synergies by combining manufacturing with Mobix's go-to-market strategy and noted that less than 5% of Spacecraft's 150 employees are engineers.

Kevin Cassidy asked about the technology roadmap for transitioning from Iris to Halo, including whether the EX90 would eventually be upgraded. He also sought a more specific estimate of Halo's cost reduction and inquired about the status of Luminar's mapping initiative.

Answer

CEO Austin Russell explained that Halo's development is accelerated by leveraging prior investments and that it is being designed to be backward-compatible with Iris for a smooth transition. He estimated Halo's cost would be 'less than half' of Iris's. Regarding mapping, he emphasized the unprecedented scale of data collection from production vehicles like the EX90, which will fuel the mapping and broader ecosystem initiatives.

Kevin Cassidy from Rosenblatt Securities inquired about the drivers behind Ouster's revenue growth despite lower sequential sensor shipments, questioning the sustainability of higher average selling prices (ASPs) and the role of software sales. He also asked for more detail on the growth and size of contracts within the key robotics and smart infrastructure verticals.

Answer

CEO Angus Pacala attributed the strong financial performance to a favorable product mix driven by high customer adoption of the new REV7 sensor, which boosted ASPs. He confirmed that record software-attached sales for the BlueCity and Gemini solutions also contributed significantly. Pacala noted that robotics is seeing growth from expanding deployments in logistics and that smart infrastructure is benefiting from the company's new turnkey solutions, emphasizing that both markets are still in the early stages of a large growth opportunity.

Kevin Cassidy asked if Valens had any customers contributing over 10% of revenue in the quarter and whether the design pipeline would lead to customer concentration or more broad-based growth.

Answer

CFO Guy Nathanzon stated there were no 10% customers in Q3. CEO Gideon Ben-Zvi elaborated that future growth will be mixed; automotive wins are large and can create concentration temporarily, while audio-video and industrial growth is more distributed across many smaller customers. He affirmed there is no long-term risk of dependency on a single customer.