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 

Copper scale-up is dead, making optics hyper bullish, especially Lumentum. Nvidia's Rubin NVLink Nyquist cut from 56 to 47 GHz signals failure: reflections matter, and bidirectional links make them worse. Feynman will have to use 16-wavelength DWDM ring-modulator CPO at roughly 50-64G NRZ. x.com  x.com 

Semtech does not deserve its status as a hot optical stock, since it is mostly a low-quality analog business with only a couple of data center parts. The move has been striking, though being wrong is possible. x.com 

Copper connectivity stays in Nvidia's racks longer than anyone modeled, a win for Amphenol and Credo. Per @SemiAnalysis_, the Kyber NVL144 rack is delayed more than 12 months to 2028 because its PCB midplane cannot be made at scale, and the NVL72x2 backup was cancelled. Co-packaged optics will not arrive until the Feynman generation, so the shift away from copper in scale-up moves out with it. x.com 

Inference's move toward edge devices and dense, memory-hungry racks should drive demand for specialized chips, links, power delivery and cooling. McKinsey projects inference at 60% of AI computing demand by 2030. Ambarella makes on-device AI chips; Astera Labs links GPUs, memory and networks; Credo supplies short copper connections; Rambus earns from memory interfaces; Navitas reduces power waste; Modine cools dense racks; and Super Micro builds inference-specific server racks at volume. x.com  … Show more

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

Copper is not a bullish play, as it is arguably used more as a transitional tool over the next two years. That holds even though NVIDIA's CEO said they will need more copper, alongside optics and CPO. x.com 

Credo is a main winner if the story @HyungsokAhn describes proves true, in which copper, pluggables, legacy power and testing benefit while co-packaged optics and 800VDC lose out. x.com 

Semtech remains a Buy with a $162 target at 22x FY28 EPS, as AI demand runs about three times its supply capacity. F2Q revenue rose 33% YoY to $341.9M, EPS of $0.71 beat $0.61, gross margin hit a record 54.5%, and F3Q guidance of $410M revenue and $1.02-1.08 EPS tops estimates. 1.6T CopperEdge ACC is now in mass shipment to major hyperscalers, and FiberEdge targets over 50% of its 1.6T market by end-FY27. SiGe/InP wafer and packaging limits are the bottleneck; FY28 EPS is forecast at $7.40. … Show more

A rising value of compute per watt should benefit AI cloud, chip, connectivity and power suppliers. Elon Musk says that value will rise over time. Nebius has Microsoft and Meta deals; Marvell benefits from custom silicon demand; Credo connects GPUs; Vistra has long-term nuclear supply deals with Amazon and Meta; Nokia's Nvidia partnership could help it capture data-center networking growth. x.com  x.com