X-FAB's earnings confirmed direct exposure to co-packaged optics and the 800V shift, which should drive a re-rating as markets price growth ahead. Management said it is progressing in CPO, with three silicon photonics projects and photonics volume production expected in 2028, a timeline not in revenue models yet. The 800V transition supports SiC and GaN demand, with three new SiC data center design wins pointing to a 2027 ramp. Current revenue is unimpressive, so some waiting is needed. x.com  … Show more

X-FAB Silicon Foundries' exposure to co-packaged optics and 800V power is now confirmed, but it is a 2028 patience trade rather than a near-term catalyst. Per @aleabitoreddit's earnings-call recap, X-FAB said it is making progress in CPO and expects the 800V transition to support SiC and GaN demand. Photonics volume production and the new Erfurt fab both land at the end of 2028, and wide-bandgap revenue dipped 30% quarter on quarter on one customer's timing. x.com 

X-FAB's celebrated AI capacity expansion means very little for shareholders today: no new revenue, no new customer and no meaningful earnings before 2029. It is merely the formal handover of a €127 million subsidy approved in late 2025, a normal 30-40% rate, and X-FAB must still fund most of the investment. The cleanroom will not produce until late 2028 and mainly serves its legacy automotive, smartphone and medical markets, making it one of the least exciting AI-linked stocks fundamentally. … Show more

X-FAB's silicon carbide and photonics growth will become impossible to ignore once autos recover, especially at 1.29x book value. @aleabitoreddit notes that Nvidia's 800V DC push favors GaN and SiC power chips, that fabless beneficiaries such as Navitas rely on foundries, and that buyers increasingly want Western supply chains. x.com 

X-FAB looks quite undervalued, with 2x potential in the short term, as a Bernstein upgrade and new CHIPS Act funding arrive. Bernstein upgraded it to Outperform and raised its target to €12.8 from €5, leaving about 38% upside from roughly €9.3. Per @aleabitoreddit, X-FAB receives €127.4 million under the CHIPS Act for its Fab4Micro MEMS foundry in Erfurt, with production planned for 2028. x.com  x.com 

X-FAB is not a strong long-term investment because legacy automotive drag and high operating costs are too heavy for a big pivot or soaring profits in the next few years. It is a relatively stable, revenue-generating company, but it rarely delivers anything groundbreaking. It works only as a short-term swing trade, riding occasional hype or liquidity pumps such as @aleabitoreddit's interest. x.com 

X-FAB is a pure-play silicon carbide and gallium nitride foundry, reminiscent of an early Tower Semiconductor or Soitec. Per @aleabitoreddit, NIST filings name it the only high-volume SiC foundry in America, making it critical infrastructure as NVIDIA pushes 800 VDC and power-chip peers Navitas and Wolfspeed rerate hard. It is also in CHIPS Act 2 blueprints for photonics, with Nokia and NVIDIA evaluations underway and volume production expected in H1 2028, all at a $1.5B market cap. x.com 

Semiconductors will reign over the next several years, with foundries, memory, photonics, photonics foundries and OSATs the areas to be long. x.com  x.com 

X-FAB is a mediocre foundry trading at more than 70 times forward earnings while making bottom-of-the-barrel gross margins and burning cash for almost its entire history. Traders buying it for Nvidia exposure could own Nvidia itself at 20 times earnings. 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