Trader Serenity said Semtech’s latest earnings pointed to continued strength in AI-related optical communications demand, highlighting management’s view that availability matters more than pricing in the current optics market. According to Serenity’s post, Semtech said existing booked orders are not expected to face near-term pricing pressure, while certification for its 1.6T FiberEdge TIA and driver products is moving faster than expected. The company also said it expects its market share in those products to exceed 50% by year-end. On orders, Semtech has already locked in all target orders for the current fiscal year, and coverage for the next fiscal year has topped 70%. The company added that current capacity may not be enough to meet demand in the second half of fiscal 2028. Financially, Semtech reported second-quarter revenue of $341.9 million, above expectations of about $329 million. Its third-quarter revenue guidance came in at $410 million, well ahead of market expectations of about $360 million. Serenity described the earnings release as "very impressive" and said it sent a positive signal for volume growth in 1.6T optical modules.
Trader Serenity said Semtech’s latest earnings showed continued strength in demand tied to AI optical communications.
In Serenity’s account, Semtech management said that in the current optical products market, "availability is more important than pricing," and that booked orders are not expected to be affected by pricing in the near term. The company also expects its market share in 1.6T FiberEdge TIAs and drivers to exceed 50% by the end of the year, with product certification moving faster than expected.
On orders, Semtech said all target orders for the current fiscal year have already been locked in, while order coverage for the next fiscal year has surpassed 70%. It added that existing capacity may not be enough to meet demand in the second half of fiscal 2028.
On the financial side, Semtech reported second-quarter revenue of $341.9 million, above expectations of about $329 million. Its third-quarter revenue guidance was $410 million, significantly ahead of market expectations of about $360 million.
Serenity said the earnings performance was "very impressive" and added that it sent a positive signal for broader volume ramp-up in 1.6T optical modules.
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