Ross Seymore • Deutsche Bank

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EVP & CFO Richard Puccio explained that OpEx grew faster than normal in FY25 due to the normalization of variable compensation from a very low base in FY24. For FY26, he expects the rate of variable comp growth to decline, allowing for continued operating leverage in a revenue growth scenario as the baseline will be higher.

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CEO Vince Roche expressed confidence in reattaining prior peaks, citing a stronger portfolio, better customer relationships, and double-digit growth in the design win pipeline in fiscal 2024. He stated the belief that ADI's business is capable of double-digit growth through the rest of the decade and that fiscal 2025 will be a 'good down payment' on that future.

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Co-Founder, CEO & Director Donald McClymont stated that tariff impact is minimal as most RADAR components ship outside the U.S. He highlighted a high ASP per car ($25-$30) and a potentially rapid ramp. He also confirmed that entering adjacent markets like quantum will not require a significant OpEx increase.

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Executive Donald McClymont identified the steepness and timing of the ramp as the main wildcard, noting that while launch start points are fixed, the ramp-up speed is harder to predict. Regarding the backlog, McClymont stated the impact from restructuring is 'very minimal,' affecting non-ADAS programs with disappointing volumes. He estimated a minor short-term revenue impact of $2-3 million in the second half but affirmed the vast majority of the strategic backlog remains intact.

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Executive Donald McClymont explained that indie is bucking the macro trend because previously delayed programs are now ramping, making its growth profile dependent on share gains rather than the overall market. He detailed that the bridge to 2025 consensus revenue will be driven by an even split between user experience and vision-based products, with a small contribution from radar in the second half.

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CFO Sandeep Nayyar projected flattish results for the Industrial and Consumer segments in Q3, with minor growth from other areas. He noted appliance weakness is being offset by a video game design win. President and CEO Jen Lloyd confirmed automotive is on track for high single-digit millions in revenue this year. Sandeep Nayyar reiterated the goal of low tens of millions by 2026, which they consider 'meaningful'. For the follow-up, he stated he expects channel inventory to be flattish and noted that the current tariff-driven adjustment is overriding typical seasonality.

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CEO Balu Balakrishnan clarified that a minor delay in a high-power program was customer-specific, not macro-related, and is expected to ramp in Q2. He affirmed that overall business trends and bookings remain normal and consistent with guidance. CFO Sandeep Nayyar reiterated the full-year non-GAAP gross margin forecast of approximately 55.5% and anticipated that operating margin would benefit from leverage as revenues increase in the second half of the year.

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CEO Balu Balakrishnan highlighted that the biggest update is the expectation for significant growth in the industrial segment, driven by infrastructure projects, renewables, and high-power applications. Both Balu Balakrishnan and CFO Sandeep Nayyar confirmed that all four segments are expected to grow, with industrial projected to see the largest dollar increase, followed by consumer.

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CEO Lisa Su stated that MI355 adoption is 'a bit faster' than previously expected, with broad-based customer interest. For the second half, she guided to single-digit sequential growth for the Client business in Q3 and flattish performance for Gaming. Dr. Su noted that for Q4, the console business is expected to decline substantially post-holiday build, which would likely cause the combined Client and Gaming segment to be down sequentially.

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Chair and CEO Lisa Su noted that MI355 adoption is 'a bit faster' than previously expected, with broad-based customer interest. For the second half, she guided to single-digit sequential growth for Client in Q3 and flattish for Gaming. She specified that the console business is expected to decline substantially in Q4, which would likely lead to a sequential decline for the overall Client and Gaming segment.

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CEO Dr. Lisa Su explained the Embedded segment's recovery is mixed, with strength in test & emulation and aerospace, but continued softness in communications and industrial, leading to modest growth expectations for Q4 and 2025. Regarding EPYC, she noted the market environment has improved as cloud and enterprise customers resume spending, and AMD's strong product portfolio is driving share gains, complementing the AI opportunity rather than being crowded out.

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President & COO Sanjay Gajendra detailed that Scorpio P serves a broad scale-out market while Scorpio X targets over 10 hyperscalers and AI platform providers for scale-up, pulling in other products. CFO Mike Tate explained that strong revenue drove margin upside, but growing hardware module sales will guide margins toward the 70% long-term target. He also clarified the Q3 tax rate of 20% is a catch-up, with a long-term rate expected around 13-15%.

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COO Sanjay Gajendra explained that the Scorpio X fabric switch is becoming a key 'anchor socket' in custom ASIC platforms, creating significant opportunities for Astera Labs to attach more products. He addressed competition by stating that hyperscalers value supply chain diversity and Astera's technological differentiation with its purpose-built AI solutions and COSMOS software, which ensures continued customer engagement.

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CEO Jitendra Mohan described customer concentration as an 'occupational hazard' in the data center market, noting that while Astera ships to all hyperscalers, revenue mix can fluctuate based on each customer's technology adoption cadence. CFO Michael Tate indicated that the gross margin mix between hardware and silicon should remain at a similar level through the first half of the year, implying the hardware mix is not expected to increase as a percentage of total revenue during that period.

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President and COO Sanjay Gajendra explained that the custom AI accelerator ramp is driven by hyperscalers increasing investment in their own internal programs. He clarified that the rising dollar content per accelerator is due to both the natural ASP uplift from newer protocols like PCIe Gen 6 and the introduction of higher-value products like Scorpio.

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CFO John Hollister confirmed the base case for full-year growth and a strong Q4 driven by NRE programs and tape-outs. CEO Tim Breen explained that direct tariff-related pull-ins were not significant in Q2. He noted the broader, short-term impact is on consumer confidence, while the long-term strategic opportunity lies in customers diversifying their supply chains to GFS's global footprint, particularly in the U.S.

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CFO John Hollister indicated that the sequential revenue improvement for Q2 is expected to be fairly well-distributed across end markets. CEO Timothy Breen explained that the M&A strategy is focused on accelerating the company's core strategy, particularly by adding value to its differentiated chip portfolio, similar to the previous acquisition of Tagor Technologies. President and COO Niels Anderskouv added that the company is well-positioned with $3.7 billion in cash and a $1 billion undrawn revolver.

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CEO Thomas Caulfield and CBO Niels Anderskouv noted that geopolitical uncertainty is increasing the importance of supply chain diversification for customers, leading to more conversations about sourcing from GF's U.S. fabs, particularly in aerospace, defense, and data center. CFO John Hollister stated that the Q1 sequential revenue decline was primarily due to seasonality across various end markets and was not driven by any single large factor.

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CEO Thomas Caulfield attributed the outperformance to GF's concentration in the smart mobile and automotive end markets, noting the latter is growing high single digits for the year due to content gains. For 2025, he expects an "up year" for GF, with Q1 2025 revenue growing year-over-year but declining sequentially from Q4 2024 at the high end of normal seasonality. CFO John Hollister confirmed that the absolute level of LTA-related benefits in Q4 would be similar to Q3 and that gross margin improved through 2024 net of these benefits due to operating leverage. He expects continued margin improvement with higher utilization in 2025.

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CEO Gene Sheridan explained that Navitas anticipates 'softer' revenue in the near term as it reduces dependency on the mobile market. He noted that growth from 48V data center projects will begin layering in during 2026, with the more significant 800V opportunity ramping in 2027. Sheridan reiterated the long-term gross margin target of over 50%, driven by high-performance markets and cost efficiencies from the new 8-inch wafer partnership with PowerChIP.

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CEO Eugene Sheridan explained that the design wins will convert to revenue starting late this year, with the vast majority ramping in 2026. CFO Todd Glickman confirmed the non-GAAP OpEx target remains around $15.5 million per quarter and that the company still expects to reach EBITDA breakeven with quarterly revenues in the high $30 million range in 2026.

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CEO Gene Sheridan stated that Q1 2025 appears to be the cyclical bottom for Navitas, with a recovery expected in Q2 and healthy growth in the second half. He attributed the silicon carbide slowdown to weakness in EV, solar, and industrial markets, which is now stabilizing. Sheridan noted that while some ASP erosion occurred in SiC, the situation has improved, and the GaN market has not seen as dramatic an impact.

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President and CEO Hassane El-Khoury noted signs of stabilization, with automotive bottoming in Q2 and expected to grow in Q3, but he remains cautious about calling a full recovery. He highlighted that the AI data center business has doubled year-over-year for the second consecutive quarter and the Trejo platform is gaining significant traction. CFO Thad Trent addressed gross margins, explaining the near-term caution on utilization and outlining the long-term path to the 53% target through improved utilization, FabRite initiatives, and a favorable product mix.

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CEO Hassane El-Khoury explained that the flat revenue guidance is due to onsemi's specific end-market exposure, particularly to the automotive EV market outside of China, which has not yet recovered. CFO Thad Trent provided new gross margin metrics, stating that each point of utilization improvement now adds 25-30 basis points to gross margin, an increase from the previous 20-25 basis points. He noted that the full benefit of depreciation savings will not be seen until Q4 2025.

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CEO Hassane El-Khoury explained that the most significant decline was in the noncore business, where onsemi is intentionally avoiding price volatility, a consistent part of its strategy. CFO Thad Trent quantified this volatile noncore business at $350-$400 million. Regarding the cost actions, Trent stated that plans are still being developed and updates will be provided as they are finalized.

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CEO Hassane El-Khoury stated the SiC slowdown is cyclical, tied to lumpy EV adoption rather than a long-term strategic shift, noting that planned vehicle models did launch. CFO Thad Trent confirmed no change to the 45% gross margin floor or 53% peak target, attributing the resilience at 65% utilization to cost optimization and the 'Fab Right' strategy.

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EVP & CFO Bernie Blegen responded that the lines between traditional CPU and AI are becoming blurry, making it difficult to separate their growth rates, but affirmed the overall outlook is very positive. Regarding tariffs, Blegen stated that the company believes the current demand is driven by the cycle itself, with insufficient information to confirm tariff-related behavior. Founder, Chairman, President & CEO Michael Hsing added that such factors are beyond their control.

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CFO Bernie Blegen responded that the Q2 guidance anticipates a narrow variance of plus or minus 5% across all business segments, indicating broad-based strength with no major divergences. CEO Michael R. Hsing added that any tariff-related order shifts have been too small to be clearly identified, highlighting the overall consistency driven by the company's diversification. Vice President of Finance Tony Balow also noted other business drivers like AI PC are contributing to strength in computing.

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EVP and CFO Bernie Blegen responded that the lines between CPU and GPU are becoming blurry, making it difficult to comment on specific market share shifts, as many MPS products support both. CEO Michael Hsing added that MPS is gaining significant share on the server side and revenue will ramp as the market recovers. Regarding communications, Bernie Blegen confirmed that the primary area of strength and the key inflection point is in optical solutions, which is part of the broader data center opportunity.

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EVP and CFO Bernie Blegen explained the growth is a mix of both cyclical improvement and company-specific factors, highlighting new revenue from prior design wins in Communications and Automotive, plus an improved memory market. CEO and Founder Michael Hsing added that the growth was seen across the board. On pricing, Hsing stated that while competitors may lower prices, MPS competes on value and performance, not price. Regarding inventory, Blegen confirmed channel inventory days went down. Hsing added that internal inventory is at an "uncomfortable" low level due to high demand but doesn't foresee a shortage.

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President & CEO Cristiano Amon clarified the Samsung relationship has a new baseline share of 75%, with anything above that considered upside. CFO & COO Akash Palkhiwala confirmed strong content growth, noting the Android business grew ~10% in fiscal 2025, exceeding Investor Day targets, and that non-Apple QCT revenue has grown over 15% annually for two years.

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Akash Palkhiwala explained that the OpEx strategy involves maintaining the current spending scale while transitioning investment from handsets to growth areas like automotive and IoT, with the goal of replacing the lost revenue over time. He noted the increased capital return reflects confidence in strong cash flow, a growing cash balance, and an opportunity to leverage the current stock price for buybacks while maintaining flexibility for M&A.

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CFO Akash Palkhiwala clarified that the IoT segment's sequential profile is influenced by normal seasonality in consumer IoT post-holidays, while the industrial and edge networking sub-segments remain strong. He attributed the robust QCT gross margin to a favorable product mix from strong premium-tier handset volume, which can fluctuate.

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CEO Lip-Bu Tan stated that trust in the foundry will be built through consistent execution on the 18A process, with a key milestone being the Penta Lake launch by year-end. CFO David Zinsner explained that Q3 gross margins are pressured by the ramp of Lunar Lake and early costs for Panther Lake. He noted future tailwinds include higher volumes of Panther Lake, improving foundry margins, and better product pricing and cost structures.

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CEO Lip-Bu Tan stated that rebuilding trust starts with execution on Intel 18A, where he sees steady progress and has increased confidence in launching the Panther Lake SKU by year-end. CFO David Zinsner explained the Q3 gross margin decline is predominantly driven by the ramp of Lunar Lake (due to in-package memory) and the initial, higher-cost ramp of Panther Lake. He noted that higher volumes for Panther Lake should become a tailwind for margins next year.

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CEO Lip-Bu Tan explained his focus is on flattening the organization to deliver superior products, noting that the product teams must use the best option, internal or external. CFO David Zinsner detailed gross margin pressures from the product mix shift to Lunar Lake and 18A start-up costs in 2025, but projected improvement in 2026 from Panther Lake's better margin profile and the benefits of in-sourcing wafers.

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Michelle C. Holthaus, Interim Co-CEO, stated it will take 1-2 years to regain a competitive footing in the data center, with Granite Rapids being a first step and Clearwater Forest now slated for H1 2026. CFO and Interim Co-CEO David Zinsner explained the Q1 gross margin dip was due to lower revenue and product cost pressures, but expects improvement through 2025 driven by a better EUV wafer mix from Intel Foundry.

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CEO Pat Gelsinger stated that while 18A financial benefits are not expected until 2026, Intel will provide qualitative updates on progress, such as lifetime deal value (LDV) and new customer wins. CFO David Zinsner explained that Q3 gross margin upside was due to selling previously reserved inventory, a benefit that won't repeat in Q4. He added that Q4 margins will also be impacted by 18A start-up costs. For 2025, margins will face headwinds from the Lunar Lake product mix, which has memory integrated into the package.

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CEO Haviv Ilan suggested that Q2 results were likely boosted by customers building inventory amid tariff uncertainty, a phenomenon that has since normalized, warranting a more prudent Q3 forecast. CFO Rafael Lizardi confirmed that the previously stated CapEx and depreciation guidance for 2025 and 2026 remains unchanged.

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Executive Haviv Ilan responded that the pricing environment remains stable, with like-for-like parts declining at a historical low-single-digit rate, though product mix has shifted. On market share, he emphasized it's a long-term measure and expressed confidence in TI's ability to compete and grow, highlighting the recent return to year-over-year growth in the analog business in Q4 after eight quarters of decline.

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CEO Haviv Ilan suggested that China's market dynamics, including faster design cycles and inventory corrections, contribute to more accelerated cycles, but he expects all markets to eventually recover. CFO Rafael Lizardi outlined the 2025 OpEx strategy, stating that R&D investments will continue to grow while the focus for SG&A will be on efficiency, leading to slower growth in that area.

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CEO Kurt Sievers stated that confidence in a new upcycle is 'clearly better' than 90 days ago, with all four tracked signals showing improvement. CFO Bill Betz explained that higher factory utilization had minimal impact on Q2 gross margins but is a factor for Q3. He also noted that while the two pending acquisitions will increase OpEx, the company has mechanisms to absorb much of the cost, though they may be 'a bit higher' if the deals close in the quarter.

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CEO Kurt Sievers stated that confidence in a cyclical recovery is "clearly better" than 90 days prior, citing strengthening signals like customer backlogs and order rates. CFO Bill Betz clarified that the gross margin impact from higher fab utilization was minimal in Q2 and would be small in Q3. He also noted that the OpEx from two smaller pending acquisitions could be largely absorbed, as their headcount is relatively small.

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CEO Kurt Sievers stated that the direct impact of tariffs is immaterial, though the indirect impact is uncertain. He explained that NXP positions itself as a European company in China, which is seen as an opportunity, while complying with all U.S. regulations. For Industrial & IoT, he noted that while the segment is guided to grow, the strength is currently more from consumer IoT, driven by specific design wins in China, and was cautious about calling this a broad-based recovery for the core industrial sector.

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CEO Kurt Sievers attributed the relative strength in Industrial & IoT to demand from Asia, particularly China, amplified by low channel inventory. Regarding Communication Infrastructure, he clarified that the end-of-life process for the digital networking products, which represent about 30% of the segment, is not complete and will continue to cause declines beyond Q1.

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CEO Kurt Sievers explained that an unexpected and broad weakness in the Industrial & IoT market emerged in August, which is now extending to the Western Automotive segment, causing Tier 1 customers to become more cautious and reduce inventory. CFO Bill Betz added that the Q3 gross margin miss was due to an unfavorable product mix, with weaker high-margin Industrial sales and stronger dilutive Mobile sales. He noted that factory utilization is in the low 70s and will be a headwind until revenues recover.

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CEO Hock Tan confirmed that the optimistic outlook is driven by a combination of factors. He stated that Broadcom is seeing increased deployment of both custom XPUs and the associated networking components, noting that demand for XPUs is higher than originally anticipated. Tan explicitly highlighted that they are observing "much more inference now," which is contributing to this accelerated demand.

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CEO Hock Tan confirmed that the confidence in the 2026 AI growth trajectory is driven by a combination of factors. He highlighted an acceleration in the deployment of custom accelerators (XPUs) for inference workloads, which he noted is happening faster than originally anticipated, and stated that this goes hand-in-hand with increased demand for AI networking solutions.

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President and CEO Hock Tan and CFO Kirsten Spears both stated that the primary use of free cash flow beyond dividends will be to pay down debt and de-lever the balance sheet following the VMware acquisition. Spears specified a focus on reducing interest expense by targeting term loans, while Tan affirmed that debt reduction is the priority over M&A for now.

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President and CEO Hock Tan focused on VMware's successful business model transformation, highlighting the strong adoption of VMware Cloud Foundation (VCF) and accelerated bookings. He indicated this positive trend is expected to continue, driving future growth for the overall software segment.

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Chairman and CEO Matt Murphy confirmed that Marvell has the capacity to expand its engagements, citing increased and reallocated R&D spending over the last few years. He stated Marvell is well-positioned to support multiple new programs and noted the emergence of a "next wave" of hyperscale-class customers who can benefit from custom silicon, with more details to be shared at the upcoming AI investor event.

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Matthew Murphy, Chairman and CEO, affirmed Marvell's confidence, citing the successful production ramp of the current-generation XPU and deep engagement on the next-generation product. Murphy stated unequivocally that Marvell expects revenue from this customer's custom XPUs to grow in fiscal 2026 and fiscal 2027. He declined to comment on the customer's potential work with other partners, focusing instead on Marvell's direct visibility into its own programs.

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CEO Matt Murphy unequivocally affirmed his commitment, stating, "I am all in, okay? On Marvell," highlighting his eight-year tenure and focus on the AI opportunity. Regarding diversification, he confirmed the strategy is on track, with multiple large-volume programs currently ramping with two different customers. He also noted that a third major customer program is progressing for the future, reinforcing confidence in their long-term custom silicon ambitions.

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CFO Willem Meintjes projected that the current gross margin trend would continue into next year, with growth from merchant products and benefits from manufacturing absorption offsetting the mix impact from custom silicon. CEO Matt Murphy added that the ultimate gross margin level depends on the recovery pace of traditional core businesses, but emphasized confidence in achieving operating margin targets through disciplined OpEx management.

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CEO Rene Haas explained that the move to custom silicon by OEMs is driven by a need for differentiation and the dominance of the Arm software ecosystem. He expects this trend of direct engagement to accelerate, especially with complex AI workloads, while affirming that the market for traditional fabless semiconductor companies will continue to exist.

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CEO Rene Haas explained that the ATA model is scalable with different variations, making it suitable for the vast majority of Arm's customer base, thus expanding the potential market. He noted customers value the model for easy experimentation and fixed R&D costs. CFO Jason Child added that they are now over 50% of the way to their goal of having 80% of license revenue from ATA customers, and these contracts include ~7% annual price increases and renewal upsides.

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CEO Fermi Wang clarified that the conservatism is geography-dependent, related to manufacturing locations, rather than market-dependent. Executive Louis Gerhardy added that for fiscal '26, IoT is expected to grow faster than auto, though both will grow. Gerhardy also explained that operating leverage will be driven primarily by revenue growth at healthy margins, combined with controlled OpEx.

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President and CEO Dr. Fermi Wang explained that Q3's strength was a mix of recovery from inventory correction and new product growth from the CV5 AI SoC, while Q4's outlook is driven by secular new product adoption. Regarding the auto funnel, Dr. Wang attributed the reduction to a slower-than-anticipated market adoption of Level 2+ systems, leading to project delays and cancellations, but affirmed long-term optimism for the CV3 platform.

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CEO Fermi Wang confirmed the inventory burn concluded in Q2 and that growth is now driven by CV5 ramps and CV22 normalization. He stated a personal belief that IoT will outgrow automotive next year, driven by the CV72 ramp. Executive Louis Gerhardy defined seasonality as Q2/Q3 being strong with Q4/Q1 typically down. CFO John Young added that the primary focus is achieving non-GAAP profitability, so OpEx growth will be managed carefully to deliver on the roadmap while driving leverage.

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CFO Steven Litchfield confirmed that improving bookings and backlog are providing better visibility. He attributed the trend to both a cyclical recovery in markets like broadband and market share gains from new product ramps. He also reaffirmed the full-year 2025 non-GAAP OpEx target of $220 million to $225 million, expecting a modest downward trend through the year.

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CFO and Chief Corporate Strategy Officer Steve Litchfield attributed the Q4 growth to improved demand across the board, particularly a strong, back-end loaded contribution from 800G optical products and a modest recovery in connectivity and industrial markets. He confirmed that the company is on track to achieve its targeted 20-25% year-over-year OpEx reduction for the next year, with the majority of cost savings already realized.

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