Summary of Applied Materials Inc (AMAT.O) Management Callback Notes Company Overview - **Company**: Applied Materials Inc (AMAT.O) - **Date of Call**: 13 February 2025 - **Market Cap**: US$149,756 million [7] Key Industry Insights Impact of China Restrictions - The company anticipates a **$400 million impact** from restrictions in China, divided approximately **50/50** between equipment and services. - About **50%** of this impact is expected to occur in **FQ2**, with the majority of equipment impact also in **FQ2**. - Services impact will continue into **FQ3** and **FQ4**, but will not increase [2] AGS Growth - Due to the restrictions, AGS (Applied Global Services) is not expected to grow at a **low double-digit** rate in **FY25**, but is projected to resume low double-digit growth annually starting from **FQ2** [3] Advanced Packaging - Management foresees some headwinds in the first half of the year for advanced packaging due to a high installation rate of HBM (High Bandwidth Memory) equipment last year. - However, revenue from advanced packaging is expected to **double** over the next **3-4 years** [3] Tariffs - Management is closely monitoring tariffs and is cautious about raising the gross margin baseline due to potential tariff impacts. - If tariffs are sustained, the company may adjust its supply chain and could potentially pass on costs in the long term. - Most of the supply chain is located in the US and Japan, which are not expected to be impacted by tariffs [4] Display Market - The company expects an increase in **OLED** penetration across all device types and has a strong solution in the OLED space, including the **MAX OLED** solution announced last November. - Despite a currently low display equipment market, management is confident in future growth [5] Operating Expenses - The company expects **R&D** expenses to grow in line with revenue, while **SG&A** (Selling, General and Administrative) expenses will grow at a lesser rate [6] Financial Projections - **Current Price**: US$184.27 - **Target Price**: US$194.00 - **Expected Share Price Return**: **5.3%** - **Expected Dividend Yield**: **0.9%** - **Expected Total Return**: **6.1%** [7] Risks - Downside risks to the target price include: 1. Variability in fab utilization and capital equipment orders, which are closely linked to stock price. 2. Competition from large peers in the semiconductor equipment industry, despite AMAT's market leadership in several sub-segments [10] Conclusion - Applied Materials Inc is navigating significant challenges due to geopolitical restrictions, particularly in China, while maintaining a positive outlook on growth in advanced packaging and display markets. The company is also managing operational costs and potential tariff impacts carefully.

Summary of Key Points from the Conference Call Industry Overview - **Industry**: IT Hardware, specifically focusing on Cloud Capital Expenditures (Capex) in North America [1][2][3] Core Insights and Arguments - **Capex Growth Forecast**: Amazon (AMZN) has provided a guidance for CY25 Capex of approximately $105 billion, leading to an expected Cloud Capex of over $350 billion in 2025, representing a 32% year-over-year (Y/Y) growth, which is 3 percentage points higher than previous forecasts [1][2] - **Comparison with Competitors**: The guidance from AMZN follows a stronger-than-expected Capex guidance from Alphabet (GOOGL), indicating a robust demand for technology infrastructure, particularly for AI and cloud services [2][3] - **Historical Context**: The projected 32% Y/Y growth in 2025 is noted to be the second strongest year of Capex growth in over five years, following a record 54% Y/Y growth in CY24 [3] - **Investment Trends**: Major US hyperscalers are investing heavily to meet the increasing demand for technology infrastructure, particularly in relation to AWS and AI services [2][3] Additional Important Information - **Upcoming Earnings Reports**: Key upcoming earnings reports from Baidu (February 17), Tencent (February 19), and Alibaba (February 20) are expected to provide further insights into the cloud Capex landscape [4] - **Revised Forecasts**: Since the beginning of 2024, Cloud Capex forecasts for CY25 have been revised approximately 60% higher, amounting to an increase of $130 billion [10] - **Capex Breakdown by Company**: - Amazon: $105.2 billion (72.4% increase from the beginning of 2024) - Microsoft: $66.3 billion (43.4% increase) - Google: $75.0 billion (94.4% increase) - Meta Platforms: $61.2 billion (69.2% increase) - Total Cloud Capex (including major players): $352.6 billion, a 58.8% increase from the beginning of 2024 [11] Conclusion - The conference call highlights a significant upward trend in cloud Capex driven by major players like Amazon and Alphabet, indicating strong demand for technology infrastructure and AI services. The upcoming earnings reports from other key players will be crucial in assessing the overall market dynamics and potential investment opportunities in the IT hardware sector.

Summary of the Conference Call on US Semiconductors Industry Overview - The conference call focused on the US semiconductor industry, particularly the DRAM market, and its performance in the PC and cell phone sectors [1][7]. Key Points Demand Trends - Demand in the PC supply chain is reported to be sluggish, which is a mild negative for companies like AMD (28% of sales), Intel (55% of sales), and Micron (15% of sales) [2][8]. - In contrast, demand in the cell phone supply chain appears stable, which is a mild positive for Qualcomm (QCOM), where 74% of sales are derived from this segment [3][10]. DRAM Inventory Levels - DRAM inventory in the PC supply chain has declined and is nearing optimal levels, having decreased from a peak of 15 weeks to approximately 10 weeks, with normal levels estimated at around 8 weeks [3][9]. - However, DRAM inventory in the cell phone supply chain remains elevated compared to PCs, indicating a potential for normalization by spring [4][11]. Pricing Expectations - The expectation is that DRAM inventory will normalize by spring 2025, with DRAM pricing anticipated to stop declining starting in the second quarter of 2025 [4][12]. Investment Recommendation - The recommendation to maintain a Buy rating on Micron Technology Inc. is reiterated, with a price target set at $150, which reflects an 11X F26E EPS, slightly above its historical average but below AI peers [5][14][17]. Risks Identified - **Supply/Demand Dynamics**: The memory industry is sensitive to the alignment of supply with demand. Excess supply could lead to inventory reductions and lower pricing, negatively impacting Micron's estimates [18][21]. - **Pricing Pressure**: Any price reductions by Micron or competitors could lead to lower contract and spot pricing, adversely affecting estimates [19][21]. - **Capacity Management**: Increased manufacturing capacity without corresponding demand could result in excess supply, leading to lower pricing [20][21]. - **Competition**: Micron faces competition from major players like Samsung, SK Hynix, Toshiba, and Western Digital, which could impact market share and estimates [21]. Additional Insights - The call highlighted the importance of monitoring inventory levels and pricing trends in the semiconductor market, particularly as the industry approaches a potential recovery phase in 2025 [1][12].

Summary of Key Points from the Conference Call Industry Overview: Semiconductors Core Insights - **AI Instances Growth**: AI instances grew by +0.9% month-over-month (M/M) in November, a decrease from +3.3% in October [1][2] - **NVIDIA (NVDA) Dominance**: NVDA captured 97.7% of new accelerator instances in November, increasing its total market share by +30 basis points (bps) to 85.0% [1][2] - **AMD's Performance**: AMD gained +70 bps in CPU market share, driven by the EPYC Genoa processor, while Intel (INTC) saw a decline of -70 bps [1][3] Market Share Dynamics - **CPU Instances**: Total processor-only instances increased by +1.5% M/M, with AMD holding 62.9% of CPU instances in November, up from 8.7% in October [3][31] - **Intel's Decline**: INTC's share of new CPU instances fell to 31.6% in November from 41.4% in October, with total INTC share declining -70 bps to 65.7% [3][31] - **Microsoft (MSFT) VM Instances**: MSFT maintained a leading position in cloud service providers (CSPs) with a 35.3% share of VM instances, up from 34.6% in October [4][31] Performance of Key Players - **AMD's EPYC Genoa**: The EPYC Genoa processor accounted for almost all incremental instances in November, increasing its share to 7.1% from 6.1% [3][31] - **AWS's Graviton Instances**: AWS's Graviton instances grew by +1.6% M/M, maintaining a flat share [31] - **CSP Market Shifts**: ORCL, BABA, and AMZN saw increases in their instance shares, while GOOG and Tencent experienced declines [47] Additional Insights - **Accelerator Mix**: The mix of dedicated accelerators has remained flat M/M, with GPUs making up 89.0% of total accelerator instances, the highest recorded [26][31] - **Market Trends**: The overall growth in instances deployed by CSPs was +1.4% M/M, driven by processor-only instances growing +1.5% M/M [17][31] Conclusion The semiconductor industry is witnessing significant shifts in market share, particularly with NVDA's strong performance in accelerators and AMD's gains in CPU instances. The competitive landscape is evolving, with key players like MSFT, AWS, and ORCL also making notable strides in their respective markets.

Summary of US Aerospace & Defense 2025 Outlook Industry Overview - The report focuses on the US Aerospace & Defense (A&D) industry, highlighting key debates and investment opportunities for 2025, particularly in Original Equipment (OE) and Aftermarket (AM) segments [2][7]. Core Insights 1. **Investment Strategy**: A barbell approach is recommended, favoring both OE and AM to capture improving production rates while hedging supply chain risks [2][7]. 2. **Boeing (BA) Production**: Boeing's MAX production is projected to reach 38 units per month by October 2025, with expectations for the stock to outperform as normalized earnings and free cash flow (FCF) potential are recognized [2][6]. 3. **Business Jet Market**: 2025 is anticipated to be the peak year for business jet deliveries, with deliveries expected to exceed orders, leading to a reduction in backlog [2][6]. 4. **Department of Defense (DoD) Budget**: No significant cuts to the DoD investment budget are expected, although uncertainties regarding federal cuts and specific contracts may impact valuations [2][6]. 5. **Government IT Spending**: Non-defense spending is at greater risk, particularly affecting Government IT (GovIT) sectors, which have seen an overreaction in stock sell-offs [2][6]. Key Debates for 2025 1. **OE vs. AM Performance**: There is an expectation for OE to outperform AM, driven by Boeing's recovery and supplier earnings inflection, despite potential supply chain disruptions [8][14]. 2. **Boeing's Recovery Year**: 2025 is viewed as a pivotal year for Boeing, with improvements in quality and supply chain stability expected to lead to positive FCF in the second half of the year [8][14]. 3. **Peak Business Jet Deliveries**: The industry is expected to face oversupply in 2025, with higher deliveries leading to increased used aircraft inventory [8][14]. 4. **DoD Investment Growth**: National security remains a bipartisan priority, with projected growth in the DoD budget, although targeted cuts may occur [8][14]. 5. **DOGE Concerns**: Concerns regarding the DOGE administration's impact on federal spending are seen as overblown, but challenges for GovIT are anticipated [8][14]. Investment Recommendations - **Buy Recommendations**: - **Boeing (BA)**: Anticipated recovery with a large backlog and improved production management [11]. - **Woodward (WWD)**: Expected growth in next-gen engines and aftermarket services [11]. - **General Electric (GE)**: Strong growth potential in aftermarket services and engine deliveries [11]. - **Northrop Grumman (NOC)**: Strong defense pick with exposure to high-priority DoD programs [11]. - **CACI**: Favorable exposure to DoD and intelligence sectors, with potential for re-rating as budget visibility improves [11]. - **Sell Recommendations**: - **Bombardier (BBD.B)** and **Textron (TXT)**: Expected underperformance due to oversupply and market conditions [11]. Additional Insights - The report emphasizes the importance of normalized earnings and FCF in driving stock performance, particularly for Boeing, which is expected to trade at a 17X mid-cycle multiple as it begins to generate cash [6][11]. - The aftermarket segment is projected to grow steadily, with pricing power and margin expansion anticipated, particularly for engine-exposed companies [15][33]. - The average age of the commercial fleet is increasing, which is expected to support aftermarket demand [26][29]. This comprehensive analysis provides a detailed outlook on the US Aerospace & Defense industry for 2025, highlighting key trends, investment strategies, and potential risks.

Industry and Company Overview * **Industry**: China Entertainment, specifically focusing on short and mini dramas. * **Key Company**: Hongguo Drama (ByteDance Group), a free short drama app. * **Analyst Firm**: Goldman Sachs China Entertainment. Key Points 1. **Rapid Growth of Short and Mini Drama Industry**: * The short and mini drama industry has experienced significant growth, with a TAM of RMB 50 billion in 2024E, surpassing the domestic box office of the movie industry. * The industry is expected to grow at a 22% CAGR from 2024 to 2027E, reaching RMB 91 billion by 2027E. * The format is gaining popularity due to its convenience, affordability, and diverse content offerings. 2. **Monetization Model Shift**: * The monetization model is shifting from In-App Purchase (IAP) to In-App Advertising (IAA), with IAA expected to account for 70% of total revenue by 2027E. * The freemium model, particularly with Hongguo Drama, is becoming increasingly popular, driven by its free access and ad-supported content. 3. **Key Players and Value Chain**: * Key players include short drama producers, advertising platforms (e.g., Douyin, Kuaishou, Tencent), and content producers/IP owners. * Advertising platforms, particularly Douyin and Kuaishou, are expected to benefit significantly from the rising short drama TAM and advertising spend. * Producers typically earn around 12% of total revenue, with the majority of revenue going to advertising platforms for marketing and user acquisition. 4. **Overseas Opportunities**: * The overseas short drama market is still in its early stages, with the US being the largest market. * The overseas TAM is expected to reach over US$10 billion with 200-300 million users in the future. * Challenges include enriching localized content offerings and improving profitability due to higher production costs in overseas regions. 5. **Impact on Long-Form Video (LFV) Platforms**: * The rise of short and mini dramas is gaining time share and may affect content consumption habits, potentially challenging LFV incumbents like IQ and Mango. * LFV platforms are increasingly introducing mini and short dramas to their content libraries to stay competitive. Potential Winners and Losers * **Winners**: * Advertising platforms (e.g., Douyin, Kuaishou, Tencent) * Short drama producers * Hongguo Drama (ByteDance Group) * **Losers**: * LFV platforms (e.g., IQ, Mango) * Traditional LFV producers

Summary of Key Points from the Conference Call Industry Overview - The conference call discusses the DRAM industry, particularly focusing on the impact of Chinese companies, especially CXMT (ChangXin Memory Technologies), on the global market dynamics [4][6][17]. Core Insights and Arguments - **Market Challenges**: The memory industry is facing three main challenges: cyclical downturns, competition from high bandwidth memory (HBM), and increased competition from China [4][6]. - **CXMT's Capacity Expansion**: CXMT's DRAM production capacity is expected to grow from 57,000 wafers per month in 2022 to 210,000 by Q4 2024, and potentially reach 300,000 wafers by the end of 2025, capturing 15% of global capacity [5][25]. - **Product Offerings**: CXMT has launched LPDDR5 products, with speeds of 6400 Mbps, which are competitive for non-flagship smartphones, although still lagging behind global leaders [14][18]. - **Impact on Profitability**: The entry of Chinese players like CXMT is expected to lower sustainable returns and profit margins in the DRAM sector, with long-term operating margins potentially declining from the historical target of 35-40% [7][17]. - **Valuation Concerns**: The anticipated decline in long-term profitability and market share could lead to lower valuation multiples for existing players like Samsung and SK Hynix, with expectations that they may not reach historical peaks of over 2 times book value in future cycles [21][25]. Additional Important Insights - **NAND Market Dynamics**: The NAND industry is exhibiting more discipline in capital expenditures compared to DRAM, with expectations of stable capital spending in 2025 [11][25]. - **Technological Barriers**: The semiconductor industry has higher technological barriers compared to other sectors, making it more challenging for new entrants to catch up [10]. - **Government Support**: The Chinese government's strong backing is facilitating CXMT's rapid capacity expansion, which is altering the competitive landscape and threatening the oligopoly held by major players like Samsung and SK Hynix [6][17]. - **Future Outlook**: CXMT is also planning to expand into server DDR5 products, with expectations of capturing about 10% of the Chinese server market by 2025 [28]. Conclusion - The rapid expansion of CXMT in the DRAM market aligns with China's broader goal of achieving semiconductor self-sufficiency, which could significantly impact global supply dynamics and pricing strategies in the memory sector [18][25].

Industry Overview 1. **Global Smartphone Market Segmentation**: The global smartphone market is segmented into three price bands: Premium (>US$600), mid-end (US$200-600), and entry level (<US$200). [20] 2. **Market Growth Projections**: The global smartphone market is expected to grow at a modest pace, with a volume growth of +3% YoY to 1.26bn units in 2025E. Market value is projected to grow at a faster rate of 5% YoY to US$573bn in 2025E. [6][8] 3. **Premium Segment Growth**: The premium segment is expected to grow at a 7% CAGR to 418m units in 2024-27E, accounting for 32% of total volume in 2027E. This segment is driven by strong consumer purchasing power and continuous technology upgrades. [21] 4. **Mid-End Segment Decline**: The mid-end segment is expected to decline by 4% CAGR to 306m units from 2024-27E, down to 23% of the total shipment by 2027E. This decline is attributed to the lack of revolutionary technology upgrades and conservative consumer behavior. [24] 5. **Entry Level Segment Stability**: The entry level segment is expected to remain stable, with a volume growth of 3% CAGR to 581m units in 2024-27E, contributing 45% of the total market. [25] 6. **Foldable Phone Penetration**: Foldable phones are expected to become more mainstream, with a penetration rate of 3.1%/ 3.7% / 4.5% in 2025-27E. This growth is driven by price reductions, software improvements, and innovative designs. [12] Company Analysis 1. **Apple**: Apple is expected to maintain its leading position in the premium segment, with a shipment growth of +5% / +3% / +2% YoY in 2024E / 25E / 26E. [35] 2. **Samsung**: Samsung is also expected to grow in the premium segment, with a shipment growth of +5% / +3% / +2% YoY in 2024E / 25E / 26E. [35] 3. **Xiaomi**: Xiaomi is expected to grow in the premium segment, with a shipment growth of +5% / +3% / +2% YoY in 2024E / 25E / 26E. [35] 4. **Lenovo**: Lenovo is expected to grow in the premium segment, with a shipment growth of +5% / +3% / +2% YoY in 2024E / 25E / 26E. [35] 5. **ZTE**: ZTE is expected to grow in the premium segment, with a shipment growth of +5% / +3% / +2% YoY in 2024E / 25E / 26E. [35] 6. **Sony**: Sony is expected to grow in the premium segment, with a shipment growth of +5% / +3% / +2% YoY in 2024E / 25E / 26E. [35] 7. **HTC**: HTC is expected to grow in the premium segment, with a shipment growth of +5% / +3% / +2% YoY in 2024E / 25E / 26E. [35] 8. **Asus**: Asus is expected to grow in the premium segment, with a shipment growth of +5% / +3% / +2% YoY in 2024E / 25E / 26E. [35] Supply Chain Analysis 1. **Semiconductors**: The semiconductor industry is expected to grow, driven by demand for smartphones, PCs, servers, and other consumer electronics. [37] 2. **Components and Brands**: Companies like MediaTek, TSMC, and SMIC are expected to grow due to increased demand for smartphones and other consumer electronics. [37] 3. **EMS and Surveillance**: Companies like Hon Hai and Pegatron are expected to grow due to increased demand for smartphones and other consumer electronics. [37] 4. **Telecom and Communication**: Companies like ZTE and Huawei are expected to grow due to increased demand for smartphones and other telecommunications equipment. [37]

Summary of Amazon.com Inc. (AMZN) Conference Call Company Overview - **Company**: Amazon.com Inc. (AMZN) - **Market Capitalization**: $2.4 trillion - **Enterprise Value**: $2.3 trillion - **Current Price Target**: $240.00, with a current price of $220.55 indicating an upside of 8.8% [2][4] Key Industry Insights - **Event**: AWS re:Invent 2024 conference highlighted Amazon's advancements in the public cloud industry, particularly in AI/ML and custom silicon [2][8]. - **Positioning**: AWS is seen as uniquely positioned to capture momentum in AI solutions across enterprise customers and developers [2][8]. Core Financial Metrics - **Revenue Projections**: - 2023: $574.8 billion - 2024E: $637.1 billion - 2025E: $705.8 billion - 2026E: $780.5 billion [2][4] - **EBITDA Projections**: - 2023: $85.5 billion - 2024E: $118.1 billion - 2025E: $146.1 billion - 2026E: $169.4 billion [2][4] - **EPS Projections**: - 2023: $2.89 - 2024E: $5.22 - 2025E: $6.60 - 2026E: $8.36 [2][4] AWS and AI Strategy - **Generative AI Strategy**: AWS's strategy revolves around three layers: Infrastructure, Model, and Application [9]. - **Infrastructure**: Introduction of custom silicon like Graviton and Trainium, with Graviton offering 40% better price performance and 60% better energy utilization than x86 [10][11]. - **Model Layer**: Expansion of Amazon Bedrock, which provides access to LLMs and other foundational models [12][13]. - **Application Layer**: Launch of Amazon Q, a generative AI assistant for software development, which has significantly improved efficiency [16]. Revenue Growth and Margin Insights - **AWS Revenue Growth**: Expected to grow by 20% in 2025, with GAAP EBIT margins projected at 33% [8][20]. - **AI Services Contribution**: AI services are anticipated to contribute approximately 400 basis points to AWS growth in 2H'24 and 500 basis points in FY25 [28]. - **Normalized Margin Expectations**: AWS margins are expected to normalize in the low-to-mid 30% range due to scale and cost efficiency measures [21][31]. Capital Expenditure and Investment - **CapEx Projections**: Total capital expenditures are expected to reach approximately $91 billion in 2025, a 21% increase from 2024 [35]. - **Tech Infrastructure Investment**: Expected to grow from $31.5 billion in 2023 to ~$70 billion in 2025, indicating a strong commitment to scaling cloud operations [36]. Additional Insights - **Partnerships**: Collaboration with Anthropic to build a large AI compute cluster, enhancing AWS's capabilities in AI model training [18]. - **Market Position**: AWS's AI business is reported to be at a multibillion-dollar revenue run rate, growing at a triple-digit year-over-year percentage [23]. This summary encapsulates the key points from the conference call, focusing on Amazon's strategic positioning in the cloud and AI sectors, financial projections, and growth initiatives.

Summary of AMD's Q3 2024 Financial Results Conference Call Company Overview - **Company**: Advanced Micro Devices, Inc. (AMD) - **Quarter**: Third Quarter 2024 - **Revenue**: $6.8 billion, up 18% year-over-year [2][11] Key Financial Highlights - **Gross Margin**: Expanded by 250 basis points to 54% [11] - **Earnings Per Share**: Increased by 31% year-over-year to $0.92 [11] - **Operating Income**: $1.7 billion, representing a 25% operating margin [11] - **Data Center Segment Revenue**: Increased 122% year-over-year to $3.5 billion, accounting for 52% of total revenue [11][12] - **Client Segment Revenue**: $1.9 billion, up 29% year-over-year [12] - **Gaming Segment Revenue**: Declined 69% year-over-year to $462 million [12] - **Embedded Segment Revenue**: Decreased 25% year-over-year to $927 million [12] Segment Performance Data Center Segment - **Growth Drivers**: Significant ramp in AMD Instinct GPU shipments and EPYC CPU sales [11] - **Market Share**: Gained server CPU share as enterprise wins accelerated [2] - **Key Customers**: Major cloud providers like Microsoft and Meta expanded their use of EPYC CPUs [2][5] - **Future Outlook**: Data center GPU revenue expected to exceed $5 billion in 2024, up from previous guidance of $4.5 billion [7][11] Client Segment - **Product Demand**: Strong demand for Ryzen 9000 series processors and Zen5 architecture [8][12] - **Commercial PC Market**: Expanded presence with large deals from companies like AstraZeneca and Volkswagen [8] Gaming Segment - **Challenges**: Revenue decline attributed to reduced channel inventory from Microsoft and Sony [9][12] - **Future Products**: Transitioning to next-gen Radeon GPUs based on RDNA4 architecture, expected launch in early 2025 [9] Embedded Segment - **Market Recovery**: Gradual recovery in demand, particularly in test and emulation sectors [12] Strategic Initiatives - **AI Infrastructure**: Acquisition of ZT Systems to enhance AI infrastructure capabilities [6] - **Product Development**: Accelerated product development pace with plans for annual launches of new instinct products [7] - **Ecosystem Collaboration**: Formed an ecosystem advisory group with Intel and other industry leaders to drive innovation in x86 architecture [4] Market Trends and Future Outlook - **AI Demand**: Anticipated growth in AI workloads, with data center AI business expected to grow at over 60% annually [10] - **PC Market**: Optimism for mid-single-digit growth in the PC market, driven by AI PCs and Windows 10 end-of-support [21] - **2025 Guidance**: Revenue expected to continue growing, with a focus on expanding customer base and optimizing workloads [24][31] Risks and Considerations - **Gaming Segment**: Continued challenges in the gaming segment due to inventory adjustments by major console manufacturers [9] - **Embedded Market**: Mixed recovery expected in the embedded segment, with some areas showing strength while others remain soft [18] Conclusion - **Overall Performance**: Strong execution in Q3 with record revenue and significant year-over-year growth across data center and client segments [11] - **Strategic Positioning**: AMD is well-positioned for continued growth and market share gains, particularly in the data center and AI sectors [10][11]