Report Interpretation

Overview

The report reviews the 2Q26 results of global analog semiconductor companies. Its core conclusion is that the industry recovery is spreading from AI data centers to industrial and automotive markets, but the pace of margin delivery has yet to meet the market's already elevated threshold. Morgan Stanley remains constructive on the industry and selects companies based on data center exposure, cyclical sensitivity, margin trajectories, and valuation differences.

Core views

First, the report believes the analog semiconductor upcycle is broadening and that growth in this cycle is being driven primarily by demand rather than short-term restocking. The improvement in industrial demand has become more widespread, while automotive demand has also begun to strengthen: STM raised its fourth-quarter industrial revenue growth guidance from 30% year over year to approximately 40%; Texas Instruments, ON, and NXP all pointed to improving automotive momentum, with NXP's automotive revenue growing 17% year over year, driven mainly by higher content per vehicle from software-defined vehicle architectures rather than restocking. Most companies expect second-half end-market growth to exceed seasonal levels. On the channel side, STM's distribution inventory is already below its normal target, Allegro has cleared the last batch of excess distribution inventory, and NXP's Western tier-one automotive customers continue to purchase only as needed. Although inventories remain elevated relative to historical levels, momentum has stabilized. Book-to-bill ratios are generally above 1, backlogs extend into 2026, prices are at least close to stable, and some companies have begun selectively raising prices. The report therefore concludes that the destocking cycle is nearing an end, restocking may gradually emerge, and selective price increases are likely to continue at least through the second half of 2026 before potentially becoming more widespread, sustaining the recovery through 2027. Second, the main post-earnings issue is not the direction of demand but the failure of margin recovery to meet elevated market expectations. STM expects a third-quarter gross margin of approximately 37%, up more than 200 basis points sequentially, but it cannot achieve the above-40% level expected by the market in the fourth quarter. Technology-transfer expenses create a 50-to-60-basis-point headwind, while China-related underutilization costs create a roughly 70-basis-point headwind. The company had previously stated that it could achieve a 40% gross margin when quarterly sales exceeded US$4 billion, but it has now withdrawn that expectation because of restructuring and ramp-up costs. Infineon's fourth-quarter segment margin guidance of approximately 23% also fell short of buy-side expectations of approximately 24% to 25%, as product mix and foreign exchange offset the benefits of higher AI and cyclical volumes. Morgan Stanley believes the market's previous assumptions for fourth-quarter margins were too high and that the post-earnings sell-off reflects the pace of delivery rather than deterioration in end demand. Improvements in utilization, pricing, and mix could still drive Infineon's FY27 segment margin to 25%. Renesas, meanwhile, was one of the better-performing companies on margins, supported by AI data center demand, higher utilization, and improvement in its industrial business. Third, AI data centers remain the principal structural growth theme for covered companies, particularly benefiting power semiconductors. Texas Instruments' 2Q26 AI data center revenue doubled year over year, and the company raised its related FY26 and FY27 sales guidance by approximately 10%, while increasing its group gross-margin expectation by 2 to 3 percentage points. ON expects 2026 AI data center sales to more than double from a 2025 base exceeding US$250 million, with customers placing orders extending into 2027 to 2028 to secure supply. The company also raised its estimate of the 2030 AI data center serviceable available market from approximately US$12 billion to approximately US$50 billion, expects the high-voltage device content per rack to increase by roughly 10 times, and anticipates that 800V DC architectures will begin ramping in late 2027 to early 2028. Infineon raised its FY26 data center revenue target from €1.5 billion to €1.6 billion and indicated significant upside potential to its FY27 target of €2.5 billion. Its customer reservation agreements total approximately high-single-digit billions of US dollars and span 3 to 4 years. The report believes the transition to 800V will not materially change value per kilowatt, but value per rack will increase, and covered companies have not lowered their data center guidance because of architectural changes. However, the report explicitly cautions against extrapolating the strong trend into FY28 without constraints, as visibility remains insufficient. Fourth, data center growth is extending from power devices to analog chips, MCUs, and optical interconnects. ADI's data center power and optical businesses both grew by more than 100% year over year, while book-to-bill ratios were above 1 across data center, industrial, and consumer markets without inventory accumulation. Following the completion of its US$1.5 billion acquisition of Empower, the company expects the acquired business to contribute several percentage points of growth in FY27. The larger integrated voltage regulator opportunity begins after 2028, and management estimates an analog chip opportunity of approximately US$1 billion to US$1.5 billion for each GW of data center infrastructure. Microchip's data center revenue grew approximately 98% year over year in the June quarter, with related CY26 revenue expected to reach approximately US$1 billion, up approximately 69% year over year, while its PCIe Gen6 switch chip design projects increased to 12. NXP's Kinara Physical AI pipeline increased from more than US$1 billion in the previous quarter to more than US$1.5 billion, covering over 200 distinct customers, though revenue conversion will occur mainly after 2027. Its data center revenue is expected to increase from approximately US$200 million in 2025 to more than US$500 million in 2026. Allegro's data center revenue has reached a record 17% of sales, and its related FY27 revenue is expected to more than double year over year. Fifth, the recovery is uneven across regions and subsectors. Greater China's MCU market remains in a supply-driven upcycle, with tight mature-node capacity and rising foundry costs supporting further price increases in the second half of 2026. Data center demand is strong and industrial demand is stable, but consumer demand remains weak. China's analog chip demand is spreading from consumer applications to industrial, energy, and AI networking, with inventories and lead times of approximately 8 to 10 weeks. Global suppliers are more restrained on pricing, and the report has not yet found evidence of industry-wide price increases. SG Micro benefits from the increase in channel counts and high-value signal-chain devices as optical modules upgrade from 800G to 1.6T, but the overall recovery is uneven and R&D investment remains high. More than 80% of Silergy's revenue still comes from 8-inch capacity, and rising wafer prices may pressure margins from 2Q26 to 3Q26. Chinese SiC device manufacturers continue to gain share: United Nova Technology guided to approximately 100% growth in 2026 SiC device revenue to RMB3 billion, with roughly 70% to 80% coming from volume growth and the remainder from higher average selling prices. It also plans to increase monthly 8-inch capacity from 7,000 wafers to 15,000 wafers by the end of 2026, which the report believes will benefit substrate supplier SICC. By contrast, the data center inflection point for GaN may not arrive until 2028 at the earliest, which is unfavorable for Innoscience's near-term delivery on this theme. Sixth, STM is a case emphasized by the report in which margin pressure and structural growth coexist. Its shares fell approximately 18% on earnings day, but the company raised its data center guidance for the third time this year, expecting revenue to exceed US$1 billion in 2026 and to be well above US$2 billion in 2027. Current optical revenue primarily comes from MCUs, but as adoption of 800Gbps and 1.6Tbps pluggable optical modules accelerates, PICs and EICs are expected to become the main drivers beginning in 2027. The Crolles facility is scheduled to ramp over the next 12 to 18 months to support demand. Personal electronics, meanwhile, is the weak spot in 2026, with full-year revenue expected to grow only in the low-to-mid-single digits and decline year over year in the second half. Morgan Stanley's model projects a 6% to 7% decline in the third quarter, but the company believes medium-term content growth means this is more likely to be temporary pressure, with personal electronics sales potentially bottoming in 2H26 and recovering in early 2027. Morgan Stanley maintains its Overweight view on STM, but because of disappointing margin leverage, it lowered the segment valuation multiples for the data center and low-earth-orbit satellite businesses to 30 times and the cyclical business to 15 times, with a target price of €65. Finally, the global model continues to support industry growth and margin expansion. Morgan Stanley forecasts analog chip market revenue growth of 8% in 2026 and 6% in 2027, while its core covered companies are expected to grow 22% and 15%, respectively, over the same periods. All end markets are expected to grow in both years, with aggregate margins continuing to expand through 2027. In company selection, the report prefers Infineon and STM in Europe; NXP, ADI, and Allegro in the US; and Renesas, Yangjie Technology, and SICC in Asia. At the same time, Texas Instruments' capital expenditure and valuation, Navitas's competitive landscape, Silergy's cost pressure, and insufficient profit conversion at some Chinese power semiconductor companies mean that the earnings sensitivity to the recovery varies significantly.

Analysis framework

The report first summarizes the 2Q26 results and guidance of global analog semiconductor companies, then sequentially examines channel inventories, book-to-bill ratios, backlogs, pricing, and automotive and industrial demand to determine whether the recovery is being driven by genuine demand. It then links revenue improvement to capacity utilization, product mix, foreign exchange, and manufacturing costs to explain why stronger demand has not yet fully translated into margins. For AI data centers, the report breaks down company exposure and timing by power semiconductors, analog chips, MCUs, and optical interconnects, and finally combines its global revenue model, margin forecasts, competitive positioning, and segment valuations to form its stock-selection conclusions.

Methodology notes

• Industry/Sector Analysis FrameworkSupply-demand framework

  Channel inventories, orders, lead times, and capacity jointly validate changes in supply and demand

  By examining whether inventories have normalized, whether book-to-bill ratios exceed 1, whether customers are still purchasing only as needed, and whether capacity is tightening, the report distinguishes an end-demand recovery from short-term restocking and uses this to assess the sustainability of the upcycle.

• Cycle and Business Conditions FrameworkInventory cycle (Kitchin)

  Cyclical assessment of the end of destocking and the start of restocking

  The report treats changes in distributor and customer inventories from excess to normalization and then potential restocking as signals of a cyclical inflection point, and believes current demand growth is not being prematurely pulled forward by aggressive restocking.

• Industry/Sector Analysis FrameworkVolume-price decomposition

  Decomposing revenue growth into contributions from volume, price, and product mix

  The report separately examines volume recovery, selective price increases, changes in average selling prices, and the share of high-value data center products to explain differences in revenue growth and its conversion into gross margins.

• Company Fundamentals and Financial FrameworkOperating/Financial Leverage Analysis

  The transmission of utilization, fixed costs, and product mix to margins

  The report views rising capacity utilization as a source of margin improvement while quantifying the drag from technology transfers, underutilization, wafer costs, foreign exchange, and capital expenditure on margins and free cash flow.

• Valuation MethodSOTP Segment Valuation

  Valuing business segments with different growth trajectories

  Morgan Stanley separately evaluates Infineon's and STM's data center, low-earth-orbit satellite, and cyclical businesses to reflect their differing growth and margin trajectories. For STM, it applies multiples of 30 times to the data center and low-earth-orbit satellite businesses and 15 times to the cyclical business.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Infineon Technologies（IFX）

  A preferred European name in the report, offering exposure to both the cyclical recovery and AI data center power.

  Strengths

  FY26 data center guidance was raised to €1.6 billion, and 3-to-4-year customer reservation agreements improve visibility; improvements in utilization, pricing, and mix could drive the FY27 segment margin to 25%.

  Weaknesses

  Fourth-quarter segment margin guidance of approximately 23% fell short of buy-side expectations of approximately 24% to 25%, with product mix and foreign exchange creating near-term headwinds.

  Comparison

  The report believes the scale of its partnerships with large customers has not been seen at other analog chip companies, potentially cementing its position as a preferred data center power-device partner.

  Risks

  Near-term margins may continue to fall short of elevated market expectations.

• STMicroelectronics（STMMI.IT）

  A preferred European name in the report, with data center optical interconnects and low-earth-orbit satellites as its principal structural growth drivers.

  Strengths

  Data center revenue is expected to exceed US$1 billion in 2026 and be well above US$2 billion in 2027, while Crolles capacity expansion supports PIC and EIC demand.

  Weaknesses

  Fourth-quarter gross margin is unlikely to reach 40%, with technology transfers and underutilization creating headwinds of approximately 50 to 60 basis points and 70 basis points, respectively.

  Comparison

  The report uses segment valuation to distinguish the data center, low-earth-orbit satellite, and cyclical businesses, and believes the approximately 18% earnings-day decline overlooked the data center opportunity.

  Risks

  Restructuring costs, capacity ramp-up, difficult automotive pricing in China, and weakness in personal electronics may delay margin recovery.

• Analog Devices（ADI）

  A preferred US name in the report, benefiting from the industrial recovery and demand for data center power and optical products.

  Strengths

  Its data center power and optical businesses both grew by more than 100% year over year, book-to-bill ratios exceeded 1 across multiple end markets without inventory accumulation, and its long-term growth framework is trending toward double digits.

  Weaknesses

  The larger integrated voltage regulator opportunity from the Empower acquisition will mainly emerge after 2028.

  Comparison

  The report emphasizes that its high-average-selling-price products, strong margins, and free-cash-flow capability can reduce direct competitive pressure from new Chinese capacity.

  Risks

  The realization of the long-term data center opportunity remains relatively distant.

• NXP Semiconductors（NXPI）

  A preferred US name in the report, with automotive, MCU, and Physical AI as sources of growth.

  Strengths

  Automotive revenue grew 17% year over year, the Kinara pipeline exceeds US$1.5 billion and covers over 200 customers, and 2026 data center revenue is expected to exceed US$500 million.

  Weaknesses

  The Physical AI pipeline will mainly convert into revenue after 2027.

  Comparison

  Automotive growth comes from higher content per vehicle in software-defined vehicles rather than restocking, making it higher quality than a purely cyclical rebound.

  Risks

  The pace of pipeline conversion and the timing of the automotive end-market recovery remain uncertain.

• Allegro MicroSystems（ALGM）

  A preferred US name in the report, with automotive electrification, the industrial recovery, and data centers providing incremental growth.

  Strengths

  The last batch of excess distribution inventory has been cleared, data centers have reached a record 17% of sales, and FY27 data center revenue is expected to more than double year over year.

  Weaknesses

  Some customers remain cautious in their ordering.

  Comparison

  The report believes its long-term earnings power will receive greater support from automotive electrification and structural industrial growth.

  Risks

  The pace of the cyclical recovery and changes in automotive demand may affect earnings sensitivity.

• ON Semiconductor（ON）

  A major beneficiary of growth in AI data center power devices, while also expanding in automotive SiC and energy storage.

  Strengths

  2026 AI data center sales are expected to more than double, with customer orders extending into 2027 to 2028; China automotive SiC revenue is expected to grow 60% to 70%, while energy-storage revenue is expected to grow approximately 40%.

  Weaknesses

  Some power products face near-term supply constraints, and in the second quarter the company prioritized AI data center demand over automotive and industrial demand.

  Comparison

  The company substantially raised its 2030 AI data center serviceable available market estimate from approximately US$12 billion to approximately US$50 billion.

  Risks

  The pace of manufacturing expansion, timing of 800V deployment, and long-term market-size assumptions may affect delivery.

• Renesas Electronics（6723-JP）

  A preferred Asian name in the report, benefiting from automotive, industrial automation, and data center digital power.

  Strengths

  2Q26 results exceeded expectations, automotive R-Car Gen 4 ramped smoothly, and factory automation, ASIC digital power, and storage-interface products performed strongly.

  Weaknesses

  The company said its selective price increases in July were a continuation of its existing strategy and would not immediately raise gross margins.

  Comparison

  While most companies' margins fell short of expectations, Renesas was one of the better margin performers because of improvements in AI data centers, utilization, and industrial demand.

  Risks

  Part of the industrial growth was driven by data center spillover, and the strength of an independent cyclical recovery still needs validation.

• Yangjie Technology（300373-CN）

  A preferred Asian power semiconductor company in the report.

  Strengths

  Demand from automotive, AI, energy storage, and industrial applications is strong, while overseas packaging and wafer-capacity expansion should help secure international customers.

  Comparison

  The report believes its demand momentum is stronger than that of some Chinese power semiconductor peers whose earnings still fall short of expectations.

  Risks

  Changes in industry pricing and end demand may affect gross-margin improvement.

• SICC（688234-CN）

  A preferred Asian SiC substrate supplier in the report, benefiting from Chinese SiC device capacity expansion and global share gains.

  Strengths

  Technological progress supports cost reductions; downstream customer United Nova Technology plans to increase monthly 8-inch capacity from 7,000 wafers to 15,000 wafers by the end of 2026.

  Comparison

  The report expects its technological leadership to enable continued share gains relative to global and domestic competitors.

  Risks

  If SiC substrate prices fall again in 2027, earnings may remain under pressure.

• Microchip Technology（MCHP）

  A beneficiary of the MCU cyclical recovery and data center connectivity demand.

  Strengths

  The inventory correction has ended, June-quarter data center revenue grew approximately 98% year over year, CY26 revenue is expected to reach approximately US$1 billion, and PCIe Gen6 switch chip design projects increased to 12.

  Weaknesses

  It still needs to demonstrate that the cyclical recovery can translate consistently into revenue and earnings growth.

  Comparison

  Data centers have become the most prominent growth driver within its MCU business.

  Risks

  MCU competition, macroeconomic uncertainty, and the restoration of customer confidence may constrain the recovery.

• SG Micro

  A potential beneficiary of higher analog content as AI optical modules upgrade from 800G to 1.6T.

  Strengths

  Networking and computing are among its fastest-growing end markets, optical-module revenue is strong, and high-value signal-chain products can improve revenue and mix.

  Weaknesses

  The recovery in China's analog demand remains uneven, while R&D investment is high.

  Comparison

  The report believes optical networking provides upside optionality, but valuation must be balanced against the uneven industry recovery.

  Risks

  The optical-module opportunity may underdeliver, or R&D expenses may remain elevated.

• Texas Instruments（TXN）

  Industrial, automotive, and AI data center markets are all recovering, but the report remains cautious about valuation and capital-expenditure pressure.

  Strengths

  Industrial revenue grew approximately 30% year over year, automotive grew at a mid-teens rate, data center revenue doubled, and third-quarter guidance was significantly above market expectations.

  Weaknesses

  Expanded capital expenditure and a higher internal manufacturing share are pressuring near-term earnings and free cash flow, while the company also faces pricing and share pressure in personal electronics and enterprise markets.

  Comparison

  Fundamentals have improved significantly, but the report believes valuation limits near-term upside.

  Risks

  Capital-expenditure ramp-up, margin pressure, and competition from local Chinese suppliers.

• Melexis（MELE）

  A beneficiary of the industry recovery, but with weaker growth and operating leverage than peers.

  Strengths

  2Q results exceeded expectations, second-half guidance was raised, and the gross-margin trajectory improved, prompting the report to raise its forecasts.

  Weaknesses

  Second-half revenue is only approximately 8% above the first half, below peers at approximately 10%; EBIT margin guidance is approximately 18%, and gross margin may struggle to return above 43%.

  Comparison

  Despite starting from a weaker first-half base, its growth still lags peers.

  Risks

  Intensifying competition in China and insufficient margin conversion.

• Silergy（6415-TW）

  It may benefit from the cyclical upturn, but the report remains cautious on near-term costs and margins.

  Strengths

  Chinese industrial and automotive customers have begun restocking after a 12-month downturn, while rush orders have emerged in AI and storage.

  Weaknesses

  More than 80% of revenue comes from 8-inch capacity, rising costs can only be partially passed through, and migration to 12-inch capacity will take time.

  Comparison

  Compared with companies that have greater data center exposure, the scale of its server and optical power-management chip businesses remains small.

  Risks

  Rising wafer prices may significantly pressure margins from 2Q26 to 3Q26.

• Innoscience（2577-HK）

  It has long-term GaN growth potential, but the data center inflection point is relatively late.

  Strengths

  The report still expects revenue to grow 65% in 2026, driven mainly by industrial applications.

  Weaknesses

  The inflection point for GaN data center demand may not occur until 2028 at the earliest, and the industry may remain oversupplied for the next five years.

  Comparison

  Large power semiconductor manufacturers have advantages in supply assurance and automotive qualification.

  Risks

  Intense competition, higher depreciation, elevated market expectations, and delayed data center delivery.

• Navitas Semiconductor（NVTS）

  It has exposure to the 800V AI server-rack opportunity, but the report believes this should not yet be fully priced in.

  Strengths

  GaN offers potential market-expansion opportunities in data centers, electric vehicles, and other fields.

  Weaknesses

  Large manufacturers such as STM, Infineon, and Renesas are entering GaN through acquisitions and partnerships and have stronger supply and automotive-qualification capabilities.

  Comparison

  The report believes more of the incremental opportunity may be captured by established power semiconductor suppliers.

  Risks

  Intensifying competition and delays to the 800V application timeline.

• StarPower Semiconductor（603290-CN）

  A beneficiary of the IGBT cyclical recovery, with exposure to IPMs and SiC MOS.

  Strengths

  Industry pricing is improving, while IPMs and SiC MOS can drive revenue growth.

  Weaknesses

  Investment costs are rising and price pass-through is delayed, automotive MCU development cycles are long, and depreciation burdens constrain margins.

  Comparison

  Improving demand has not yet translated into earnings performance as strong as Yangjie Technology's.

  Risks

  Weak electric-vehicle sales and untimely price pass-through.

• Silan Microelectronics（600460-CN）

  A beneficiary of power semiconductor localization in China, but with weak profit conversion.

  Strengths

  Industry pricing and capacity utilization are improving.

  Weaknesses

  Interest expenses and depreciation weigh on earnings, and the report expects an operating margin of approximately 10% in 2026, with operating leverage remaining limited even at full utilization.

  Comparison

  Its valuation is approximately 4.8 times 2026 book value per share, above the three-year average of approximately 3.3 times.

  Risks

  High depreciation, interest expenses, and an elevated valuation may offset the industry recovery.

Key data

• STM Fourth-Quarter Industrial Revenue Growth GuidanceApproximately 40% year over yearPrevious guidance was approximately 30% year over year
• STM Expected Third-Quarter Gross MarginApproximately 37%Up more than 200 basis points sequentially, but a gross margin above 40% in the fourth quarter is considered difficult to achieve
• Infineon Fourth-Quarter Segment Margin GuidanceApproximately 23%Below buy-side expectations of approximately 24% to 25%; the report expects FY27 to reach 25%
• Infineon AI Data Center Revenue GuidanceMore than €1.6 billion in FY26, with an FY27 target of €2.5 billionFY26 was previously €1.5 billion, and the report says there is significant potential for an upward revision to the FY27 target
• ON 2026 AI Data Center SalesMore than doubling year over yearThe 2025 base exceeds US$250 million, with customer orders extending into 2027 to 2028
• ON 2030 AI Data Center Serviceable Available MarketApproximately US$50 billionPreviously approximately US$12 billion; high-voltage device content per rack is expected to increase by approximately 10 times
• STM Data Center Sales GuidanceMore than US$1 billion in 2026 and well above US$2 billion in 2027Driven primarily by demand related to optical connectivity, PICs, EICs, and STM32
• Microchip Data Center RevenueApproximately 98% year-over-year growth in the June quarterCY26 is expected to reach approximately US$1 billion, up approximately 69% year over year
• NXP Kinara Physical AI PipelineMore than US$1.5 billionUp from more than US$1 billion in the previous quarter, covering over 200 distinct customers, with conversion primarily after 2027
• United Nova Technology 2026 SiC Device Revenue GuidanceApproximately RMB3 billion, up approximately 100% year over yearApproximately 70% to 80% comes from volume growth, with the remainder from higher average selling prices
• Global Analog Chip Market Revenue Forecast8% growth in 2026 and 6% growth in 2027Morgan Stanley's core covered companies are expected to grow 22% and 15%, respectively, over the same periods
• STM FY25-to-FY27 Gross-Margin ImprovementUp 200 basis points year over year in FY26 and another 290 basis points in FY27Based on Morgan Stanley estimates

Impact & implications

The report believes post-earnings share-price reactions mainly reflect market disappointment with near-term margin delivery rather than rejection of the direction of analog semiconductor demand. Channel normalization, improved order visibility, and the spread of automotive and industrial demand support a continued upcycle, but differences in data center exposure, manufacturing costs, capacity utilization, product mix, and valuation determine whether revenue improvement can translate into earnings and relative performance. Therefore, not all companies will benefit from the industry recovery simultaneously.

Risks

• The pace of fourth-quarter margin recovery may continue to fall short of the market's elevated expectations, particularly for STM and Infineon.
• Product mix, foreign exchange, wafer costs, technology-transfer expenses, and low capacity utilization may weaken the conversion of revenue growth into profits.
• The report believes visibility into FY28 AI data center demand is insufficient and cautions against unconstrained extrapolation of recent strong growth.
• The recovery in China's analog chip demand remains uneven, there is still no evidence of industry-wide price increases, and consumer demand remains weak.
• The GaN data center inflection point may not arrive until 2028 at the earliest, while intense competition and excess capacity may delay earnings improvement.
• The timing of 800V rack deployments, the pace of optical interconnect adoption, and customer project conversion may all be later than expected.

What to watch

• Watch for updates on the 800V rack deployment and power semiconductor adoption timeline at the AI Infra Summit in September 2026.
• Watch for incremental commentary on data center power architectures at the OCP Global Summit in October 2026.
• Watch for updates on the timelines for CPO, NPO, and optical technologies at the Silicon Photonics Global Summit from August 31 to September 1, 2026, and the PIC Summit Europe in November.
• Watch for information on inventories, pricing, and end markets disclosed at ON's Financial Analyst Day on September 16, 2026.
• Watch companies' 3Q26 results from October to November, as well as Infineon's 4Q26 results, for quantification of the potential upward revision to its FY27 data center target.
• Continue monitoring whether book-to-bill ratios remain above 1, whether channels begin restocking, and whether selective price increases broaden to more products and customers.