Steven Chin

Steven Chin inquired whether the two Novera system sales were complete systems, including dilution fridges and control systems, or just QPU chips, and if the upgrade option was included in the announced price or an additional revenue opportunity. He also asked about the software/hardware changes needed for NVIDIA NVLink support and its potential application in AI data centers for GenAI.

Answer

President and CEO Subodh Kulkarni confirmed the Novera sales were for complete systems, and upgrades would represent additional revenue. He explained that NVLink aligns with Rigetti's hybrid system vision, supporting direct interfacing between quantum and AI supercomputers, and is a natural step for superconducting quantum computing due to its speed. He anticipates such products in data centers closer to quantum advantage, emphasizing the role of open standards.

Steven Chin of TD Cowen asked about the necessary software or hardware changes for NVIDIA's NVQLink interface and Rigetti's perspective on its application in hybrid quantum computing for supercomputing versus AI data centers and GenAI.

Answer

President and CEO Subodh Kulkarni stated that NVQLink aligns with Rigetti's strategy for hybrid systems, leveraging superconducting quantum computing's speed for HPC integration. He anticipates its role in connecting quantum computing with GenAI and AGI applications in data centers, emphasizing its importance for open standards in hybrid computing.

Steven Chin of TD Cowen, on behalf of Krish Sankar, asked about the potential for M&A, the roadmap for improving gate speeds, and the expected share count for Q3.

Answer

CEO Subodh Kulkarni explained that while Rigetti is open to M&A, they see no current practical opportunities that would accelerate their timeline, given their leadership position. Regarding gate speeds, he expressed confidence in achieving sub-50 nanosecond speeds, noting it's a critical metric for hybrid quantum-classical systems but not the most difficult challenge on their roadmap. CFO Jeffrey Bertelsen provided a Q3 share count estimate of approximately 327 million.

Steven Chin inquired about the quantifiable impact of tariffs on Q3 margins and the extent to which mitigation efforts were successful. He also asked about the outlook for the Print business, questioning why return-to-office trends were not translating into a more positive forecast for fiscal 2026.

Answer

CFO Karen Parkhill stated that HP mitigated the 'majority' of tariff costs in Q3 through supply chain optimization, cost reductions, and pricing actions, with a goal to fully offset them over time. CEO Enrique Lores added that in the short-term, enterprises are prioritizing investments in AI and PCs over Print hardware. However, he noted that the volume of pages printed remains stable, suggesting long-term demand for hardware will return as companies eventually need to refresh their fleets.

Steven Chin of TD Cowen asked about Fab 25's loading under the Infineon agreement, the available capacity for new customers, and the details surrounding the recent IP license agreement with Infineon, including its origin and development timeline.

Answer

CEO Thomas Sonderman stated that while the fab is currently near target utilization with Infineon's products, efficiency improvements will create bandwidth for new customers. He noted the newly licensed 130nm high-voltage IP from Infineon will be integrated into their existing design infrastructure this year, with customer tape-outs expected in 2026. Sonderman clarified that acquiring this IP was always part of the strategic plan to immediately create a path for new products into the fab.

Steven Chin of TD Cowen asked about the implications of rising hyperscaler CapEx for Arm's future royalty growth and licensing opportunities like CSS.

Answer

CEO Rene Haas described the increased CapEx as a 'very strong tailwind' for Arm. He explained that since AI will impact every industry and Arm is at the heart of compute from the cloud to the edge, the unabated demand for AI infrastructure is a long-term positive for both technology licensing and royalty revenue growth.