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 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 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

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 

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

Silicon carbide's years of oversupply are turning, as China's Yangjie Tech says its capacity is fully booked, per SCMP, a positive sign for Infineon, Wolfspeed and STMicroelectronics. As more makers fail to meet rising demand, orders should also flow to Wolfspeed, whose heavily underutilized New York SiC fab would gain tremendous operating leverage. 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 

STMicroelectronics is a hidden common thread across semiconductors, and the market is waking up to it in 2026. It turns up in silicon carbide and GaN power devices, its STM32 is effectively the MCU standard, and it leads MEMS sensor share. Its chips sit in SpaceX Starlink satellites, AWS data center infrastructure and a humanoid robot shown at NVIDIA's headquarters. A "European semiconductor" label long kept interest lukewarm, but that perception is breaking down fast. x.com 

STMicroelectronics offers rare asymmetry for a large cap: a bear case in line with the S&P 500, a slightly better base case and a wildly better bull case. 2026 marked an inflection in its data-center business, with a multi-year, multi-billion-dollar Amazon agreement and guidance raised from $1B before 2030 to well above $2B in 2027. A base case with a modest AI business implies 15% annual growth through 2030; if photonics, power and robotics reach a third of revenue, 30-50%. x.com  x.com  x.com