Liam Pharr

Liam Pharr inquired about any expected impacts or benefits from recent restrictions on a Chinese competitor in the drone market. He also asked about the impact of component cost inflation, specifically DRAM, on the overall demand environment.

Answer

President and CEO Fermi Wang stated Ambarella is monitoring the situation, noting no direct impact on current design wins but watching potential future impacts depending on FCC review. He also highlighted the significant drone market outside the U.S. Regarding component cost inflation, Mr. Wang indicated no direct impact on Ambarella but acknowledged customer concerns about price increases rather than shortages. He believes the impact would primarily affect low-end products, which Ambarella has minimal exposure to, but remains vigilant.

Liam Pharr from Bank of America asked for commentary on recent M&A rumors and industry consolidation, as well as the company's strategy if it remains independent. He also inquired about the sustainability of the current growth drivers in IoT and auto through 2026.

Answer

CEO Fermi Wang declined to comment on rumors but emphasized that Ambarella's leadership in Edge AI, with 36 million SoCs shipped, makes it a strategically important company. For growth sustainability, Wang stated the company is working to secure a major L2+/L3 automotive design win to drive future growth, while IoT is growing significantly now. VP Louis Gerhardy added that growth is broad-based across many Edge AI verticals, not just a few markets, including enterprise security, telematics, portable video, and robotics.

Liam Pharr from Bank of America asked about the cost and revenue synergies observed thus far from the Ansys acquisition for fiscal year 2026, and then delved into the puts and takes for China's revenue being flat or growing year-over-year, including changes in the competitive landscape.

Answer

Sassine Ghazi, President and CEO, stated that the first wave of joint solutions will be delivered in H1 2026, with monetization anticipated in FY 2027. Shelagh Glaser, CFO, added that teams are already cross-selling, with a commitment of $400 million in revenue synergies run rate by year 4 and accelerating $400 million in cost synergies run rate by year 3. Ghazi explained that China's Q1 performance was in line with expectations, with classic Synopsys slightly down due to cumulative restrictions impacting customer demand, particularly in IP where customers may opt for domestic foundries. He acknowledged seeing domestic competitors as customers seek alternatives.

Liam Pharr from Bank of America inquired about the cost and revenue synergies realized from the Ansys acquisition for fiscal year 2026 and the competitive landscape and challenges in the China market.

Answer

President and CEO Sassine Ghazi stated that the first wave of joint Synopsys-Ansys solutions will be delivered in the first half of 2026, with monetization anticipated in FY 2027. CFO Shelagh Glaser noted that cross-selling training is underway, with a commitment of $400 million in revenue synergies run rate by year four and accelerating cost synergies. Sassine Ghazi explained that China's classic Synopsys revenue was slightly down due to cumulative restrictions impacting customer demand, particularly in IP, while Ansys performed well, and domestic competitors are emerging where Synopsys technology is restricted.

Liam Pharr from Bank of America, on behalf of Vivek Arya, asked if Synopsys's largest customer remains a growth area amid their R&D spending reductions and questioned the company's market share position there. He also asked about the 'Plan B' for the pending ANSYS acquisition if it fails to close.

Answer

CEO Sassine Ghazi explained that agreements with their largest customer are multi-year and committed, so EDA software revenue is generally not impacted by roadmap fluctuations, though hardware may see quarterly shifts. Regarding the ANSYS deal, he stressed that closing the transaction is the only scenario being considered, citing strong customer support and active, cooperative negotiations with China's SAMR.

Liam Pharr from Bank of America, on behalf of Vivek Arya, questioned if Synopsys's largest customer remains a growth area amid its R&D spending cuts and asked about market share dynamics. He also asked for the company's 'Plan B' if the pending Ansys acquisition does not close.

Answer

CEO Sassine Ghazi explained that agreements with its largest customer are multi-year and committed, so roadmap fluctuations generally do not impact EDA software revenue. On the Ansys deal, he emphasized that closing the transaction is the only scenario being considered, citing strong customer support and active, cooperative negotiations with the remaining regulator in China (SAMR).

Liam Pharr sought clarification on whether content gains being offset by mix refers to the iPhone 17 becoming a greater part of the mix or shifts between models of the same generation. He also asked about data center growth relative to the overall broad markets segment and the complementarity/competition of Wi-Fi portfolios post-merger.

Answer

CEO Philip Brace clarified that the potential moderation by mix is due to uncertainty in how particular models will sell, as the customer's sales mix is unknown. He confirmed that the data center segment is growing faster than overall broad markets, driven by power isolation and timing products. Regarding Wi-Fi, he stated that both companies' portfolios have unique positions, and they will evaluate the strategy post-merger while maintaining customer commitments.

Liam Pharr sought clarification on whether the offset to content gains at the largest customer was due to the '17' generation becoming a larger part of the mix or shifts between models of the same generation. He also asked about data center progress relative to the broad markets segment average and the complementarity and potential competition between Skyworks' and Qorvo's Wi-Fi portfolios post-combination.

Answer

CEO and President Philip Brace clarified that the potential moderation by mix is due to uncertainty in how particular models will sell, making it difficult to predict. He reiterated that blended content should be stable. For data centers, he confirmed it's growing faster than the overall broad markets, driven by power isolation products for high-voltage servers and timing products for high-bandwidth architectures. Regarding Wi-Fi, he stated that both portfolios have unique positions, and the combined company will evaluate going forward while maintaining customer commitments.

Liam Pharr of Bank of America, on for Vivek Arya, asked about Skyworks' content visibility in flagship phones for the upcoming year and whether the pricing environment for new sockets has changed recently.

Answer

CEO Philip Brace explained that visibility for the next cycle is limited as key decisions are made in the late fall, but he is encouraged by long-term drivers like internal modem adoption and AI-driven refresh cycles. He described the pricing environment as consistently and highly competitive, stating it has not materially changed.

Liam Pharr inquired about the trajectory of gate all-around (GAA) technology for Nova in Q4 2025 and throughout 2026. He also asked about Nova's M&A strategy, including desired expansion areas and capabilities for acquisition.

Answer

Gabby Waisman, President and CEO, stated that GAA continues to drive Nova's business, with the company on track to achieve its $500 million aggregated business target from 2024-2026, expecting continued growth in 2026. She added that Nova has the financial capacity for inorganic growth, focusing predominantly on semiconductor process control and related segments, with a dedicated team pursuing opportunities.

Liam Pharr with Bank of America asked about the trajectory of Nova's gate-all-around (GAA) business for Q4 2025 and through 2026. He also inquired about Nova's M&A strategy, specifically where the company aims to expand and what capabilities it seeks to acquire.

Answer

Gaby Waisman, President and CEO of Nova, confirmed that GAA is a key business driver, with Nova exposed to all four GAA players and on track to meet its $500 million aggregated business target for 2024-2026. She noted significant growth in GAA business in 2025, expected to continue into 2026. Regarding M&A, she stated that Nova has the capital to pursue inorganic growth, primarily focusing on semiconductor process control but open to other segments with strong semiconductor ties.