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 still has a lot to prove because its execution has consistently been poor, despite promising technology. Management targeted about €300 million of silicon carbide revenue by 2026 and delivered essentially nothing, with most of that business going to Infineon. Its new photonics story, led by a €48 million EU consortium with NVIDIA as a partner, makes headlines, but NVIDIA has no obligation to become a customer. It stays on the watch list until actual execution under the new CEO. x.com 

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 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 

Ultra Clean Holdings is an AI bottleneck play that operates more like an industrial infrastructure company than a chipmaker. It builds the gas delivery, fluid handling and other subsystems advanced fabs need to produce chips, so it is tied to long-cycle fab construction, AI fab expansion and advanced packaging rather than consumer gadgets, much as Comfort Systems or Sterling benefit from data center builds. Its monthly chart resembles Vertiv's and Celestica's before their big runs. x.com  x.com 

X-FAB is a good name because 800V demand is booming for its traditional CMOS business, not because of CPO, which is too small and far from taking off. It can shift capacity from unprofitable automotive to profitable cloud-provider work, and its silicon carbide also targets 800V. It is a rare fab with products at about 1.5x book, cheap because past profits were weak; earnings should improve as Chinese foundry costs have doubled. A 2–2.5x book multiple looks achievable, but not a 5–10x return. … Show more

TSMC's third capex raise in six months signals strong demand, not overreach, since management tends to be too conservative on capex; the market's 4% premarket drop looks wrong. Q2 EPS of $4.31 beat by $0.37 and revenue of $40.2 billion rose 33.7%, with a 67.7% gross margin. 2026 capex guidance rose to $60-64 billion from $52-56 billion, the next three years' capex should be significantly higher, and management sees strong AI demand through at least 2029-2030. x.com  x.com 

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 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'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