Soitec's Q1 shows its photonics wafer monopoly turning into growth. It makes the Photonics-SOI substrate under nearly every silicon photonics chip, from TSMC's COUPE to Applied Optoelectronics and Coherent transceivers and Nvidia and Broadcom CPO switches, with 95%+ share. Photonics-SOI sales doubled to over half the €65M Edge & Cloud AI segment. Revenue of €113M rose 23% at constant currency versus 15% guided, Q2 guidance is 30%+ versus 4% expected, and its Singapore 300mm fab qualified early. … Show more

Soitec gains from co-packaged optics, which multiply its Photonics-SOI content about 4x per optical port, from roughly 50mm² in a pluggable to 200mm² in a CPO switch. Its proprietary Smart Cut process, with over 4,300 patents and 12-24-month foundry qualification lock-in, gives it over 95% of photonics substrates. Morgan Stanley upgraded it to overweight with a €70 target, up from €35, citing an underappreciated mix shift that should expand gross margins. x.com  x.com  x.com 

Soitec now looks overextended after a rapid run, and a pullback is likely. The AI photonics bottlenecks behind the thesis are real, but it is hard to judge what premium each name deserves, which makes the stock hard to value at these levels. x.com 

Soitec's guidance shows AI optical demand turning into real revenue upstream, in the silicon-photonics substrate layer. It now expects $250M-$300M of Photonics-SOI revenue in FY2027, up from just over $100M, driven by AI data-center optical connectivity. Q2 Photonics-SOI revenue should triple and overall Q2 growth guidance rose to about 50% from over 30%. Planned multiyear deals with eight of about ten major customers suggest they see it as strategic supply. This isn't purely a CPO signal. x.com 

Soitec's Q1 shows AI data-center demand for its Photonics-SOI wafers is now driving results. Photonics-SOI sales doubled to over half the €65M Edge and Cloud AI segment, revenue rose 23% to €113M versus 15% guidance, and Q2 guidance is 30%+ growth against 4% consensus. Per BofA, Soitec says the wafer is in every new AI data center past 800G. More than 10 customers hold deposit-backed capacity reservations past FY2027. Margins lag as fab loading fell to 48% and €30M of EU subsidies roll off. … Show more

Soitec's chokepoint thesis is being validated as silicon photonics goes mainstream. UBS estimates it holds 95% of the substrate market for silicon photonics chips, and revenue usually flows through such a monopoly-like position. Soitec now expects 80% of more than 10 capacity reservation agreements within one to two weeks and calls $200M of photonics-SOI revenue absolutely a floor. TSMC sees silicon photonics topping 50% of the optical transceiver market in 2027. x.com  x.com 

Soitec's photonics-SOI business is accelerating sharply, making the stock cheaper on a bull case that still needs to play out. Q1 FY27 revenue rose 23% organically to €113m, with photonics-SOI up about 100%; Q2 is guided up over 30% and FY27 photonics revenue should more than double. If photonics becomes supply-constrained, near-idealistic 40-42% EBITDA margins on €750m revenue imply about 11x FY28 EV/EBITDA, versus 13.3x on prior consensus. Below about 70, confidence would return. x.com 

Soitec is now a bet on its future photonics ramp, since the next few quarters will be bad too. Buying today means buying that photonics story, with the weaker mobile segment carried along with it. x.com 

Soitec holds a monopoly on the Photonics SOI wafers the AI photonics trade runs through, yet trades at just 3.6x forward EV/revenue. Silicon photonics chips in AI data centers, from transceivers to Nvidia switches and Broadcom ASICs, are built on it via its proprietary Smart Cut process; GlobalWafers exits by 2027 and Shin-Etsu sells little. Optical interconnect grows from about $10 billion to over $70 billion by 2030, and top customer Tower Semiconductor targets 5x capacity by end-2026. x.com 

Soitec looks compelling again because the market misunderstands its book value, its underutilized fabs and the wafer area co-packaged optics will need. Depreciation on idle capacity is compressing earnings. @WalterA09213626, whose post is quoted, notes the share price fell from an all-time high of €200 to €116 over the past month. x.com