Semtech is not an attractive holding because of its historic cyclicality, unless the business has materially changed. x.com 

Semtech's valuation already assumes strong execution, so the stock needs growth to keep pace with a fast-expanding optical market. It is one of the few names with real products across all three AI networking layers, from scale-up copper to scale-out optics chips and, via the HieFo laser deal, scale-across. FY26 data center revenue rose 58% to $223M, with over 50% growth guided for FY27. BofA sees the optical market growing from $14B in 2025 to $73B by 2030, a pace that would ease the multiple. … Show more

Semtech benefits as larger AI clusters need faster, more efficient links between GPUs and switches, which its CopperEdge and FiberEdge chips supply. Data center revenue rose 91% year over year. The stock keeps setting all-time highs despite a broad semiconductor sell-off and tops US semiconductors by Momentum Score at 99, ahead of AMD and NVIDIA. x.com 

These ten semiconductor stocks look cheap because each has a PEG ratio near or below 1, meaning growth outpaces valuation. Nvidia's Q1 revenue rose 85% and AMD's 38% with MI350 commitments; Broadcom's AI chip revenue rose 143% with a $73B AI backlog; Marvell's custom silicon doubled. Sandisk has $42B in contracted backlog, Micron's HBM is sold out through 2026, and Coherent, Credo and Applied Optoelectronics ride AI optics demand. ON Semiconductor is the slow-growth value play. x.com  x.com  x.com  … Show more

Applied Optoelectronics makes optical transceivers for data-center networks, which AI scaling needs. x.com 

Semtech may see buyers soon as AI and optics stocks are on the run. At 172 the stock sits below its fast zone, and a close below 170 would end the thesis. x.com 

Coherent is the most potentially undervalued photonics play because the market has not caught up to what it has become. Its March 23 demonstration with Tower Semiconductor of 400 Gbps per lane on a silicon modulator, aimed at 3.2T transceivers, is not priced in. Revenue rose from $1.58B to $1.69B with $1.78B guided, and it was first to mass-produce 1.6T transceivers. Despite running from $61 to $336, it trades at a fraction of Arista's and Broadcom's valuations. x.com  x.com 

Applied Optoelectronics' roughly $12B valuation is absurd any way you look at it, even after management raised its mid-2027 projection to $471M in monthly revenue. It doesn't hold up on 2027 revenue, let alone earnings or the margin compression co-packaged optics would bring. Management will keep overpromising and underdelivering, could face legal trouble over what looks like a pump and dump, and has been in such trouble before; its own employees deride the company. x.com  x.com  x.com 

Semtech's analyst-day growth outlook makes the stock look cheap if guidance holds. Management guided to $3.2B FY30 revenue at 38% CAGR and estimated 70% gross and 48-50% operating margins. Backlog alone underpins more than doubling datacenter revenue in FY27 and FY28, versus the 80% and 70% previously modeled; LoRa's 30% CAGR tops the prior 20% assumption. Later forecasts are more conservative, so growth could beat 38%. At 25x FY30 earnings (January 2030), the stock should trade at $320. x.com  … Show more

Semiconductors will be much higher in 12 months if the market's real doubt is whether this cycle lasts another year. The cycle feels like the bottom of the third inning while the market prices a seventh-inning stretch, which is why so many chip names look like must-owns at these valuations. In order of preference: Nvidia, Credo, Astera Labs, Lumentum, Broadcom, TSMC, Coherent, Marvell, then SK hynix and Micron. x.com