"Patience is a Super Power" - "The Money is in the waiting"

Saturday, March 15, 2025

From Factory Robots to Humanoids, the Robot revolution is coming and Fanuc Corp is in the thick of it!

 


Why Fanuc (FANUY) Dominates in Factory Robotics?

Fanuc Corporation (Ticker: FANUY) is a global leader in industrial automation and factory robotics, with a strong, worldwide presence in robotics, CNC systems, and factory automation. Here’s why it dominates:

1. Market Leadership in Industrial Robotics

  • Largest supplier of industrial robots globally (alongside ABB and KUKA).
  • Over 750,000 robots installed worldwide.
  • Strong presence in automotive, electronics, and manufacturing industries.

2. Highly Reliable and Scalable Robotics

  • Fanuc robots are known for their durability, precision, and reliability.
  • Provides robotic arms, assembly robots, welding robots, and painting robots for high-precision manufacturing.
  • Used by Tesla, Ford, General Motors, Toyota, and other major automakers.

3. Strength in CNC Systems and Automation

  • Dominates the CNC (Computer Numerical Control) machine market, which is key for precision manufacturing.
  • CNC systems power over 50% of the world’s machine tools, making Fanuc a crucial supplier for advanced factories.

4. Full Automation Solutions (Lights-Out Manufacturing)

  • Fanuc enables fully automated factories, including "lights-out" manufacturing, where factories run with zero human intervention.
  • Example: Fanuc’s own factories are almost fully automated, producing robots with robots.

5. Strong Global Presence & Manufacturing Capacity

  • HQ: Japan, but has factories and offices worldwide, including the U.S., Europe, and China.
  • Major production facilities in Japan and China allow for cost-effective manufacturing and rapid deployment.

6. Competitive Moat & Long-Term Customer Base

  • High switching costs: Once a manufacturer integrates Fanuc’s robots into their workflow, switching to a competitor is expensive and time-consuming.
  • Long-term contracts: Automakers, semiconductor fabs, and consumer electronics firms rely on Fanuc robots.

7. Financial Strength & Profitability

  • Debt-free with a strong balance sheet.
  • High profit margins due to low-cost production and high-value automation systems.
  • Consistent revenue from maintenance, software, and spare parts.

8. Expanding into AI and Humanoid Robotics

  • While Fanuc is dominant in industrial robotics, it is also investing in AI-driven automation and collaborative robots (cobots).
  • Possible future entry into humanoid robotics, leveraging its manufacturing expertise.

Why we might Invest in FANUY? (currently on our watch list)

✔ Global leader in industrial automation & robotics.
✔ Financially strong with high margins & no debt.
✔ Long-term growth as automation demand rises.
✔ AI and factory automation are future megatrends.

​Fanuc Corporation (Ticker: FANUY) is a global leader in industrial automation and robotics, renowned for its dominance in factory robotics. This report provides an in-depth analysis of Fanuc's financial performance, growth projections, market presence, cash position, and partnerships.​

Financial Performance

For the fiscal year ending March 31, 2024, Fanuc reported the following consolidated financial results:​

  • Net Sales: ¥795.3 billion, a decrease of 6.7% from the previous fiscal year.​fanuc.co.jp
  • Operating Income: ¥141.9 billion, down 25.8% year-over-year.​
  • Ordinary Income: ¥181.8 billion, a decline of 21.4%.​fanuc.co.jp
  • Net Income Attributable to Owners of Parent: ¥133.2 billion, a decrease of 21.9%.​fanuc.co.jp

These figures indicate a contraction in both revenue and profitability compared to the prior year. ​fanuc.co.jp

Future Growth Projections

Despite recent declines, Fanuc is poised for future growth:​

  • Revenue Growth: Analysts forecast a compound annual growth rate (CAGR) of 4.4% in revenue, reaching approximately ¥849.6 billion by fiscal year 2026.​simplywall.st+1fanuc.co.jp+1
  • Earnings Growth: Earnings per share (EPS) are expected to grow at a CAGR of 8.3% over the same period.​
  • Return on Equity (ROE): Projected to increase to about 25% by 2026, up from 19.3% in 2021, indicating enhanced profitability and efficient capital utilization. ​morningstar.com

Markets and Countries Served

Fanuc's global sales distribution for FY2024 is as follows:​

  • Japan: ¥105.1 billion

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  • Americas: ¥227.3 billion

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  • Europe: ¥168.5 billion​fanuc.co.jp

  • Asia (excluding Japan): ¥284.1 billion

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  • Other Regions: ¥10.2 billion​

The company maintains a strong presence across major industrial regions, with significant operations in Japan, the Americas, Europe, and Asia. ​fanuc.co.jp

Cash Position

Fanuc's financial stability is underscored by its robust cash position:​

The company continues to generate substantial free cash flow, supporting ongoing investments and shareholder returns. ​

Partnerships

Fanuc has established strategic partnerships to enhance its technological capabilities and market reach:​

  • General Electric (GE): Collaborated to produce onboard electronics for the M1A2 Abrams tank. ​wired.com
  • Raytheon: Fanuc robots are utilized in missile production at Raytheon's Arizona facility. ​wired.com
  • UK Defense Industry: Assisted the United Kingdom in creating an efficient production process for 155-mm artillery shells. ​wired.com

These collaborations underscore Fanuc's integral role in both civilian and defense manufacturing sectors.​wired.com

Conclusion

Fanuc Corporation's leadership in industrial automation is supported by its solid financial foundation, strategic global presence, and key partnerships. While recent financial results indicate challenges, the company's proactive strategies and market positioning suggest potential for sustained growth in the evolving automation industry.

Ed Note:

We currently have no shares of Fanuc but have placed it on our watch list for now!

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Friday, March 14, 2025

There's Potential for a Long-Term NVIDIA-IONQ Partnership in Hybrid Quantum-Classical Computing

 


Introduction

As the demand for advanced computing accelerates, a potential long-term partnership between NVIDIA and IONQ is emerging as a pivotal force in the evolution of hybrid quantum-classical computing. By integrating the strengths of NVIDIA’s GPU-accelerated supercomputing with IONQ’s quantum processing capabilities, this collaboration has the potential to revolutionize science, medicine, and technology. Recent joint initiatives suggest that both companies are positioning themselves for deeper engagement, creating a powerful hybrid system that leverages the best of both classical and quantum computing paradigms.

Current Collaboration

In November 2024, NVIDIA and IONQ showcased an advanced hybrid quantum-classical computing workflow. This demonstration highlighted the integration of IonQ’s quantum hardware with NVIDIA’s CUDA-Q platform, enabling real-time acceleration of complex scientific computations, including molecular electronic structure calculations. These types of calculations are critical in fields such as drug discovery, materials science, and advanced chemistry.

NVIDIA’s CUDA-Q serves as an essential bridge, allowing seamless interaction between quantum processing units (QPUs) and classical GPUs. This synergy ensures that quantum resources are utilized efficiently while leveraging classical supercomputing power to process and interpret quantum results.

The Case for a Long-Term Partnership

Several factors indicate that NVIDIA and IONQ may be moving toward a long-term strategic alliance:

  1. Complementary Strengths: NVIDIA’s dominance in AI and GPU computing perfectly complements IONQ’s expertise in quantum processing. As hybrid quantum-classical computing gains traction, the integration of these technologies will likely become a necessity rather than an option.

  2. Shared Vision for Hybrid Computing: Both companies have demonstrated a commitment to hybrid computing approaches. NVIDIA’s investment in CUDA-Q and IONQ’s development of Hybrid Services Suite suggest a common goal of making quantum computing a practical tool for real-world applications.

  3. Potential Applications in Science and Medicine: The integration of NVIDIA’s AI-driven simulations and IONQ’s quantum capabilities can significantly impact drug discovery, genetic sequencing, and biomolecular modeling. For example, quantum-enhanced simulations of protein folding and molecular interactions could accelerate the development of new treatments for diseases such as cancer and neurodegenerative disorders.

  4. Expansion into Commercial and Industrial Sectors: A long-term collaboration would not be limited to scientific research. Hybrid systems combining NVIDIA and IONQ’s technologies could find applications in cybersecurity, financial modeling, logistics optimization, and other commercial domains where complex computations are required.

  5. Scaling and Cloud Integration: NVIDIA’s existing presence in cloud computing infrastructure and IONQ’s partnerships with cloud providers indicate that hybrid quantum computing could become an accessible service via major cloud platforms. This would democratize access to quantum-powered solutions across industries.

The Future of Hybrid Quantum-Classical Systems

The increasing need for computational power in AI, data analytics, and cryptography underscores the importance of hybrid quantum-classical approaches. NVIDIA’s continued investment in quantum-friendly software platforms and IONQ’s steady progress in improving qubit fidelity and scalability suggest that these two companies will likely deepen their relationship in the coming years.

As NVIDIA hosts its first-ever Quantum Day on March 20, 2025, the event could serve as a platform for announcing an expanded partnership with IONQ. This would signal a strategic commitment to building a robust ecosystem where quantum and classical computing operate in tandem to solve some of the world’s most pressing computational challenges.


Conclusion

The groundwork laid by NVIDIA and IONQ through their recent collaborations suggests a growing alignment in their long-term objectives. By continuing to integrate their technologies, the two companies have the potential to define the future of hybrid computing, pushing the boundaries of what is possible in science, medicine, and technology. If their partnership solidifies, it could mark a major milestone in the journey toward practical quantum computing applications, with transformative impacts across multiple industries.

Ed Note:

Should this (potential) partnership come to fruition, we might see an announcement or at least an indication at the upcoming Nvidia Quantum summit on March 20th!  

Stay tuned, it's getting very interesting!

Full disclosure: 

Long IONQ and added more this week!

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Silver is often overlooked as an investment and a safe haven. Pan American Silver (PAAS) is a world leader in silver production!

 


As of March 14, 2025, Pan American Silver Corp. (NASDAQ: PAAS) has reported robust financial and operational performance for the fiscal year ending December 31, 2024. Below is a comprehensive overview of the company's financials, production metrics, and asset portfolio.​

Financial Performance

  • Revenue: The company achieved record revenues totaling $2.8 billion for the full year 2024. ​Stock Titan+1tipranks.com+1

  • Net Earnings: Net earnings for FY 2024 were reported at $112.7 million, translating to basic earnings per share of $0.31. ​tipranks.com+2Stock Titan+2Investing News+2

  • Cash Flow: Pan American Silver generated record cash flow from operating activities amounting to $724.1 million in 2024. ​Investing News

Cash and Cash Equivalents

Operating Costs

Production in 2024

Mine Production Details

As of March 14, 2025, Pan American Silver Corp. operates the following mines across the Americas:​

Mexico:

Peru:

  • Huarón Mine: Located in the Pasco Region, this mine is known for its polymetallic deposits, including silver, zinc, lead, and copper. ​en.wikipedia.org

Bolivia:

  • San Vicente Mine: Situated in the Potosí Department, this mine produces silver, zinc, and lead. ​en.wikipedia.org

Argentina:

  • Cerro Moro Mine: Located in Santa Cruz, this mine produces both silver and gold. ​en.wikipedia.org

Brazil:

Chile:

  • El Peñón Mine: Located in the Antofagasta Region, this mine produces both gold and silver. ​panamericansilver.com

  • Minera Florida Mine: Situated in the Santiago Metropolitan Region, this mine produces gold, silver, and zinc. ​en.wikipedia.org

Canada:

  • Timmins Mine: Located in Ontario, this is a gold-producing mine. ​

  • Whitney Mine: Situated in Ontario, this mine is part of the company's gold segment. ​panamericansilver.com

Peru:

  • Shahuindo Mine: Located in the Cajamarca Region, this mine produces gold and silver. ​

These operations underscore Pan American Silver's extensive mining activities across the Americas, focusing on the production of silver, gold, zinc, lead, and copper.​panamericansilver.com+2panamericansilver.com+2panamericansilver.com+2

Total Assets and Mineral Reserves

  • Total Assets: As of December 31, 2024, Pan American Silver's total assets were valued at approximately $6.5 billion. ​

  • Mineral Reserves:

    • Proven and Probable Silver Reserves: Approximately 550 million ounces.​
    • Proven and Probable Gold Reserves: Approximately 5.8 million ounces. ​panamericansilver.com

These figures underscore Pan American Silver Corp.'s strong financial health, efficient operational management, and substantial asset base, positioning the company favorably within the precious metals industry.

ED Note:

Bought some shares today!

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Wednesday, March 12, 2025

Practical business problem solved proving quantum supremacy says D-Wave Quantum!

             


 D-Wave Quantum Inc. (NYSE: QBTS) announced today that its Advantage2 annealing quantum computer has achieved a significant milestone in quantum computing by outperforming one of the world's most powerful classical supercomputers in solving complex magnetic materials simulation problems. This accomplishment, detailed in the peer-reviewed journal Science, represents the first demonstration of quantum computational supremacy on a practical, real-world problem. ​ft.com+9stocktitan.net+9Benzinga+9

In the study, D-Wave's quantum computer simulated the behavior of magnetic materials—a task that would have taken a classical supercomputer nearly one million years to complete. This breakthrough is particularly significant for fields such as materials discovery, medical imaging, electronics, and superconductors, where understanding the quantum nature of magnetic materials is crucial. ​Barron's+4stocktitan.net+4wsj.com+4Benzinga+4stocktitan.net+4stocktitan.net+4

The Advantage2 system used in this research was fabricated in collaboration with SkyWater Technology, a U.S.-based semiconductor manufacturer. This partnership underscores the importance of domestic manufacturing in advancing global technology leadership. ​Barron's+5businesswire.com+5businesswire.com+5stocktitan.net+3Benzinga+3businesswire.com+3

Following the announcement, D-Wave's stock experienced a notable increase, reflecting investor optimism about the company's technological advancements and their potential applications across various industries. ​investors.com

D-Wave's Quantum Supremacy Claim Sparks Industry Buzz
Faviconwsj.com
D-Wave Claims 'Quantum Supremacy,' Beating Traditional Computers

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Solving practical technical problems for Businesses and Science

D-Wave's quantum supremacy claim revolves around solving a magnetic materials simulation problem, specifically related to the quantum dynamics of spin glasses. This type of problem is notoriously difficult for classical supercomputers to handle due to its complex, high-dimensional energy landscapes and the need to track intricate quantum interactions over time.

The Problem: Simulating Quantum Spin Glasses

Spin glasses are disordered magnetic systems where the spins (tiny magnetic moments of atoms) are arranged in a way that leads to frustration—meaning the system cannot settle into a simple, low-energy state. Understanding the behavior of spin glasses is crucial for various applications in materials science, optimization, neuroscience, and artificial intelligence.

  • Why Is This Problem Hard for Classical Computers?
    • The problem involves tracking quantum fluctuations and entanglement in a many-body system.
    • A classical supercomputer would need to simulate a vast number of possible configurations and their energy states, leading to an exponential scaling problem—the number of possibilities grows too large to compute within a reasonable timeframe.
    • Prior classical methods use approximate algorithms that introduce errors or take an infeasibly long time to run.

How D-Wave’s Quantum Computer (Advantage 2) Solved It



D-Wave used its Advantage2 annealing quantum computer, which is specifically designed to tackle optimization and combinatorial problems efficiently. The researchers compared their quantum annealer against state-of-the-art classical algorithms running on one of the world’s most powerful supercomputers.

Key Findings:

  1. Quantum Speedup:

    • The quantum annealer significantly outperformed classical methods in simulating the coherent quantum dynamics of spin glasses.
    • The classical simulations would have taken nearly one million years, whereas D-Wave’s system solved it in a feasible amount of time.

  2. First "Useful" Quantum Supremacy Demonstration:

    • Unlike previous supremacy claims (e.g., Google's 2019 claim, which solved a random sampling problem with little real-world utility), D-Wave’s problem has practical applications in physics, chemistry, and engineering.

  3. Material Science and Industry Applications:

    • Understanding spin glasses can lead to advancements in designing superconductors, better memory storage devices, and more efficient electronics.
    • The experiment also lays the foundation for future quantum simulations of chemical reactions, drug interactions, and advanced AI models.

Why This Matters

This result is groundbreaking because:

  • It demonstrates quantum advantage on a real-world problem rather than an artificially constructed task.
  • It validates annealing-based quantum computing as a useful approach for solving physics and optimization problems.
  • It could accelerate progress in multiple scientific and industrial domains, from new material discovery to complex optimization tasks in logistics, AI, and cybersecurity.

This achievement positions D-Wave’s approach to quantum computing as a strong contender in the race for practical quantum applications.

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Will Nvidia and D-Wave collaborate in future?

Ed Note: 
D-Wave Quantum Inc. and NVIDIA have engaged in discussions about the integration of quantum processing units (QPUs) and graphical processing units (GPUs). In January 2025, D-Wave's CEO, Dr. Alan Baratz, addressed comments made by NVIDIA's CEO, Jensen Huang, regarding the timeline for practical quantum computing applications. Dr. Baratz emphasized that D-Wave's annealing quantum computing solutions are already commercially available and solving real-world problems. He also expressed openness to collaborating with companies like NVIDIA to explore the potential of combining QPUs and GPUs. ​
While no formal partnership has been announced, both companies have acknowledged the potential benefits of integrating their respective technologies. NVIDIA has been actively involved in quantum computing research, particularly in simulating quantum annealers, a type of quantum computer that D-Wave specializes in. In July 2024, NVIDIA's supercomputers were utilized to validate pathways toward the commercialization of quantum computing, specifically focusing on quantum annealing methods. ​blogs.nvidia.com
These developments suggest a mutual interest in exploring collaborative opportunities between D-Wave and NVIDIA, aiming to enhance the capabilities of both quantum and classical computing systems.


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