Srini Pajjuri

Corrected the premise that upside bias remains, then explained how customers freed bottleneck capacity and said further 2026 upside is unlikely.

Reiterated the flat-to-slightly-up China view and disaggregated multinational versus indigenous customer trends within the 26% figure.

Doug said China WFE is flat to slightly up YoY but declining as percent of revenue as global multinationals grow faster; also noted broadening customer mix within China.

Doug attributed spares/service strength to peak utilization, with EI and cobots layering incremental growth; Reliant reflects softer mature node spending offsetting partially.

Tim said 2025 share gains came from both NAND and foundry logic. On 2026 revenue, Tim confirmed the message is they will expand SAM, gain share, and outperform WFE.

Tim cited gate all around, backside power, advanced packaging leadership, and emerging dry EUV resist as multiple billion-dollar technology inflections driving foundry strength.

Tim framed Moly as a multi-year transition as customers move capacity to higher layer counts, with different intercept points but growing adoption over time.

Management said gate-all-around, advanced packaging and backside power let Lam expand its served market and gain share, not just win replacement revenue.

CFO described it as a small adjustment from 6 weeks ago but noted it translates into a little bit stronger view of 2026 for KLA, with 9 months remaining to provide updates.

CFO expects 2027 to shift a few percent more toward memory versus this year's approximately 62% logic split. China expected to grow slower than WFE with flat spending levels.

Bren quantified N2 at 40,000-50,000 wafer starts in year one with at least a doubling expected next year, indicating the cycle is early with strong continuation.

Rick explained high NA drives more inspection needs because smaller features mean smaller defects matter more, with early high NA insertion expected to increase reticle check requirements.

Bren updated KLA's N2 share premium to 90-100 basis points above N3, up from the prior estimate of 75 basis points.

Bren clarified the Foundry/Logic mix is relatively consistent when looking at semiconductor customer systems, with some non-N2 customers in December not repeating in March.

Higgins said 2H upside was M3-centric, with M2 shipments beginning this quarter and driving most of next year's growth.

Dave disclosed ASIC run rate is north of $1 billion. Lip-Bu described it as purpose-built silicon leveraging Intel's unique CPU, packaging, and foundry assets with active customer engagements.

Dave revealed that Lip-Bu's year-end yield target will likely be achieved by mid-year. Full pick margins expected decent by year-end but foundry-level margins need multiple quarters more.

Michelle confirmed 70% in-house target unchanged. Nova Lake will have product at both TSMC and Intel, but aggregate will have more Intel wafers than Panther Lake.

Michelle said Q1 hyperscaler strength was partly pull-in that won't repeat in Q2. Acknowledged margin and ASP pressure from share stabilization efforts. Strong demand for older-gen server parts exceeds supply.

Michelle confirmed Panther Lake stays on 18A, but Nova Lake will have compute tiles both inside and outside. Each product generation evaluated independently on process fit.

Dave said breakeven target is primarily based on internal wafer volumes shifting to higher-margin EUV, with small external customer assumption. External wins could accelerate timeline.

Gary cited >70% packaging growth this year, strong hybrid-bonding technology and adjacent steps, and significant panel revenue growth next year without a timing forecast.

Brice clarified most NAND spending is technology upgrades not capacity additions, driven by low 20s percent bit demand growth. Customers don't change upgrade plans based on utilization changes.

Brice reaffirmed 30% as long-term China revenue share with Q2 at 26%. Gary emphasized ICAPS is still the largest market with China the largest country within it, expecting capacity additions every year.

Brice reiterated two-thirds foundry/one-third memory WFE split and strong current DRAM market but declined to make a specific FY2025 DRAM call.

Brice explained NAND has been primarily an upgrade market since high shrink rates deliver needed bit density without new wafer starts, but Q1 shows slight uptick.

Murphy called $1B scale-out switching milestone significant from near-zero 5 years ago; noted scale-up switching is a bigger greenfield opportunity with no established market share, representing pure upside not in current forecasts.

Murphy confirmed FY28 custom growth split remains roughly equal thirds across existing XPU, XPU-attached programs, and new tier-1 XPU ramp, with all three buckets sizing up from prior expectations.

Murphy sees no fundamental market share shift through 1.6T transition. First to market at both 5nm and 3nm 1.6T. LPO viewed as incremental for scale-up. Distribution inventory very low with strong sell-through.

Confirmed Customer C remains the largest opportunity of the three, tracking well with strong mutual support. Custom silicon opportunity set continues to gain momentum each quarter. Unchanged from AI Day except increased overall confidence.

Answered specifically: Phase 3 is the final SAMR stage and two jurisdictions remain, while flagging regulatory uncertainty.

Identified consumer IoT as the drag but explicitly declined to size it, saying no further breakout is given.

Kris confirmed large customer business tracking normally. Below-seasonal guidance driven by broad markets sequential growth being less than anticipated three to six months ago.

Kris provided granular broad markets mix: 40-50% Edge IoT, 35-40% networking/infra/cloud, 20-25% industrial/auto. AI data center traction with timing solutions but traditional cloud muted.