Report Interpretation

Overview

This report reviews the 2Q26 results and management commentary of global analog semiconductor companies, focusing on whether margins falling short of elevated expectations alter the cyclical recovery thesis. Morgan Stanley concludes that they do not: near-term margin delivery is uneven, but broadening industrial and automotive demand, nearly completed channel destocking, stabilizing prices, and rising AI data center orders collectively point to a demand-driven upcycle.

Core views

The report first distinguishes between the “direction of demand” and the “pace of margin delivery.” The 2Q26 earnings season showed that the industrial recovery is broadening and automotive demand is also beginning to turn upward. STM expects 4Q industrial revenue to grow approximately 40% YoY, above its previous guidance of approximately 30%, while Texas Instruments, ON Semiconductor, and NXP all cited improving automotive momentum. At the same time, many analog semiconductor stocks declined after earnings, primarily because buy-side margin expectations had risen excessively during the quarter. STM expects a 3Q gross margin of approximately 37%, up more than 200 basis points sequentially, but even if quarterly sales exceed US$4 billion in 4Q, its previously anticipated gross margin above 40% will remain difficult to achieve due to underutilization, technology-transfer costs, and ramp-up expenses. Infineon's 4Q segment margin guidance of approximately 23% was also below the buy-side expectation of approximately 24% to 25%, as product mix and foreign exchange offset part of the gains from AI and cyclical volume growth. The report therefore believes that the margin issue reflects the pace of recovery rather than deterioration in the direction of end demand. The foundations of the cycle itself are more constructive than share-price reactions suggest. STM's distribution inventory has fallen below its normal target, Allegro has cleared the final portion of excess channel inventory, NXP's Western automotive Tier 1 customers continue to purchase on a just-in-time basis, and inventory positions at Texas Instruments and Monolithic Power are also relatively lean. Because broad and aggressive restocking has not yet emerged, the report judges that current growth is primarily driven by genuine demand rather than early inventory replenishment. Prices increased sequentially at several covered companies, and ON Semiconductor, Infineon, and STM are implementing selective price increases in response to costs and supply tightness. Pricing remains a secondary contributor relative to volume for now, but Morgan Stanley believes prices have bottomed, sequential price increases may continue through the remainder of 2026, and such increases could become more widespread in 2H26. Book-to-bill ratios above 1 and backlogs extending into 2026 provide the strongest forward-looking signals for the upcycle. The report expects further price improvements, inventory replenishment, and more widespread book-to-bill ratios above 1 in 2H26, and believes the recovery has the potential to continue through 2027. AI data centers remain a structural growth engine layered on top of the cyclical recovery. Texas Instruments' AI data center revenue doubled YoY in 2Q26, after which the company raised its related FY26 and FY27 sales guidance by approximately 10%, increased its expected group gross margin by 2 to 3 percentage points, and forecast continued above-market growth in 2027 as ASSP designs ramp. ON Semiconductor expects 2026 data center sales to more than double from a base exceeding US$250 million in 2025. Customers have placed orders extending into 2027 to 2028 to secure supply, and some power products are even experiencing near-term constraints. The company also raised its 2030 AI data center serviceable available market from approximately US$12 billion to approximately US$50 billion, expects the high-voltage power semiconductor content per rack to increase to approximately 10 times its prior level, and believes 800V DC architectures will begin scaling in late 2027 to early 2028. Infineon raised its FY26 data center revenue target from €1.5 billion to €1.6 billion and implied significant upside to its FY27 target of €2.5 billion. Its customer reservation agreements total high-single-digit billions of US dollars and cover 3 to 4 years, providing longer-term visibility into capacity and orders. However, the report explicitly cautions against extrapolating this trend without constraint into FY28 because visibility remains limited by then. Optical interconnects are another major data center theme. STM raised its data center guidance for the third time this year, forecasting revenue above US$1 billion in 2026 and well above US$2 billion in 2027. Current optical revenue primarily comes from microcontrollers, but as 800Gbps and 1.6Tbps pluggable optical modules gain adoption, the report expects the main incremental contribution in 2027 to shift toward PICs and EICs. The Crolles facility is scheduled to ramp over the next 12 to 18 months to support demand, while CECP sales are expected to grow 80% to 90% YoY in 4Q. ADI completed its US$1.5 billion acquisition of Empower in July and expects the business to contribute several percentage points to data center growth in FY27, with the larger integrated voltage regulator opportunity beginning after 2028. Management estimates approximately US$1 billion to US$1.5 billion of analog semiconductor opportunity per gigawatt of data center infrastructure and says the 2030 data center and energy serviceable available market has more than doubled from its estimate a year earlier. The report believes Nvidia's architectural shift to 800V has not weakened the power semiconductor thesis: covered companies have generally maintained or raised their FY26 and FY27 guidance, and Infineon notes that content per kilowatt is largely unchanged while content per rack is higher. Operating data from North American analog and MCU companies also support a broadening recovery. Texas Instruments' industrial revenue grew approximately 30% YoY, automotive revenue grew in the mid-teens, and data center revenue doubled. Its 3Q guidance was well above market expectations, but Morgan Stanley maintains its Underweight rating because of valuation and the pressure of capacity expansion on near-term earnings and free cash flow. Allegro's data center revenue reached a record 17% of sales, FY27 data center revenue is expected to more than double YoY, and automotive growth also exceeded its long-term model target of above 10%. ADI's guidance implies that the October quarter will mark its tenth consecutive quarter of above-seasonal performance, with book-to-bill ratios above 1 and no inventory accumulation in data centers, industrial, and consumer markets. Both its data center power and optical businesses grew more than 100% YoY, and its long-term growth framework was raised from mid-single digits to nearly double digits over the next several years. Microchip's June-quarter data center revenue grew approximately 98% YoY, related CY26 revenue is expected to reach approximately US$1 billion, up approximately 69% YoY, and PCIe Gen6 switch design projects increased to 12. NXP's automotive revenue grew 17% YoY, driven primarily by increased content per vehicle from software-defined vehicle architectures rather than restocking. Its Kinara physical AI project pipeline increased from more than US$1 billion in the previous quarter to more than US$1.5 billion, covering more than 200 distinct customers, although revenue conversion will mainly occur after 2027. NXP's data center revenue is expected to increase from approximately US$200 million in 2025 to more than US$500 million in 2026, gradually forming a third growth engine. Demand improvement in power semiconductors is clear, but the conversion into earnings is uneven. ON Semiconductor expects its 2026 China automotive SiC revenue to grow 60% to 70% YoY and energy storage revenue to grow approximately 40%. In 2Q, it prioritized shipments to AI data centers, leaving automotive and industrial product supply to catch up over the next several quarters. In Greater China, Yangjie Technology is showing strong momentum across automotive, AI, energy storage, and industrial applications, while StarPower Semiconductor and Silan Microelectronics, despite benefiting from improved industry pricing, still face delayed pass-through of input costs and price increases that have yet to materially improve margins, respectively. United Nova Technology expects 2026 SiC device revenue to grow approximately 100% YoY to RMB3 billion, with approximately 70% to 80% of the increase coming from volume and the remainder from higher average selling prices. Its monthly 8-inch SiC capacity is planned to rise from the current 7,000 wafers to 15,000 by the end of 2026, which the report believes will benefit substrate supplier SICC. The inflection point for GaN in data centers may not arrive until 2028 at the earliest, which is unfavorable for Innoscience's near-term delivery, although the report still expects its 2026 revenue to grow 65%, driven by industrial applications. The recovery in China's analog semiconductor market is broadening, but structural divergence remains significant. Industrial, energy, and AI networking demand are improving, while inventory and lead times remain at 8 to 10 weeks. More disciplined pricing by global vendors may ease price pressure, but the report has not yet seen evidence of broad-based price increases across China's analog industry. SG Micro's AI optical-module revenue is growing rapidly, and the migration from 800G to 1.6T will increase channel counts and the content of higher-value signal-chain products. However, China's analog demand remains uneven and R&D spending is also high, so the Equal-weight rating is maintained. Silergy is benefiting from restocking by industrial and automotive customers after a weak 12 months, as well as rush orders from AI and storage customers. However, more than 80% of revenue still comes from 8-inch products, wafer price increases can only be partially passed on, and margins are expected to remain under pressure from 2Q26 to 3Q26. Renesas, meanwhile, delivered a positive earnings surprise driven by automotive R-Car Gen 4, factory automation, digital power, and storage-interface products. The report also notes that part of its industrial strength reflects spillover from AI data center demand into factory automation and semiconductor equipment rather than a purely independent recovery in the traditional cycle. In company selection and valuation, Morgan Stanley prefers companies that can benefit simultaneously from cyclical recovery and structural data center growth and have a path toward medium-term margin recovery. Infineon remains Overweight with a target price of €81. The report expects improvements in utilization, pricing, and product mix to lift its FY27 segment margin to 25% and uses a sum-of-the-parts valuation to distinguish its data center and cyclical businesses. STM remains Overweight with a target price of €65, but because operating leverage was below expectations, the valuation multiple for its data center and low-Earth-orbit satellite businesses was reduced to 30 times and that of its cyclical businesses to 15 times. The report expects its gross margin to increase 200 basis points YoY from FY25 to FY26 and another 290 basis points in FY27. The global model forecasts analog market growth of 8% in 2026 and 6% in 2027, while the core company portfolio is expected to grow 22% and 15%, respectively. All major end markets are expected to grow in both 2026 and 2027, with margins also expected to continue expanding. Accordingly, the report believes recent share-price reactions to margin disappointments do not fully reflect improving demand and the long-term data center opportunity.

Analysis framework

The report first summarizes the 2Q26 results and 3Q and 4Q guidance of globally covered companies, then uses channel inventory, end-market inventory, pricing, book-to-bill ratios, and backlogs to assess whether the recovery is driven by genuine demand. It then breaks down growth drivers across analog chips, power semiconductors, MCUs, SiC/GaN, and optical interconnects and compares revenue, margins, and capacity constraints among companies in Europe, North America, Greater China, and Japan. Finally, it combines segment growth trajectories, margin recovery, and relative valuation to derive individual stock preferences.

Methodology notes

• Industry/Sector Analysis FrameworkSupply-demand framework

  Joint assessment using inventory, lead times, book-to-bill ratios, and backlogs

  The report distinguishes a genuine end-demand recovery from a short-term inventory-driven rebound by assessing whether channel inventory is normal, whether customers are restocking, whether book-to-bill ratios exceed 1, and how far order visibility extends.

• Cycle and Business Conditions FrameworkInventory cycle (Kitchin)

  End of analog semiconductor destocking and the restocking cycle

  The report views channel inventory falling to normal or low levels, automotive customers buying on a just-in-time basis, and broad restocking not yet having begun as signals that destocking is nearing completion and the next inventory replenishment cycle may emerge.

• Industry/Sector Analysis FrameworkVolume-price decomposition

  Decomposition of volume, price, and product mix

  The report notes that the current recovery is primarily volume-driven, with selective price increases providing secondary support, while changes in the share of higher-value products such as data center products explain margin differences among companies.

• Industry/Sector Analysis FrameworkUpstream-Midstream-Downstream Industry Chain Transmission

  Transmission of AI infrastructure demand to power devices, optical interconnects, foundries, and substrates

  Starting from data center rack architectures and optical-module upgrades, the report analyzes how demand transmits to power semiconductors, PICs/EICs, MCUs, SiC devices, and substrate suppliers, and extends further to factory automation and semiconductor equipment.

• Valuation MethodSOTP Valuation

  Segment valuation of Infineon and STM

  The report values data center, low-Earth-orbit satellite, and traditional cyclical businesses separately based on their different growth trajectories, avoiding the use of a single multiple that would obscure differences between structural and cyclical businesses.

Asset mapping & comparison

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

• Infineon (IFX)

  A preferred European stock; maintained at Overweight with a target price of €81; benefits from automotive and industrial cyclical recovery as well as AI data center power semiconductor growth.

  Strengths

  Its FY26 data center revenue target was raised to €1.6 billion, 3- to 4-year customer reservation agreements enhance visibility, and the report expects its FY27 segment margin to reach 25%.

  Weaknesses

  Its 4Q segment margin guidance of approximately 23% was below buy-side expectations of approximately 24% to 25%, with product mix and foreign exchange offsetting part of the volume gains.

  Comparison

  The report believes the scale of its customer partnerships remains uncommon among other analog semiconductor companies and views it as a preferred partner in data center power semiconductors.

  Risks

  Margin recovery may be slower than expected, and the magnitude of any increase to the FY27 data center target remains to be quantified.

• STMicroelectronics (STM; STMMI.IT)

  A preferred European stock; maintained at Overweight with a target price of €65; long-term growth is jointly driven by data center optical interconnects, low-Earth-orbit satellites, and cyclical recovery.

  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 will ramp over the next 12 to 18 months.

  Weaknesses

  Its 4Q gross margin is unlikely to reach the previously targeted level above 40%, with technology-transfer costs creating 50 to 60 basis points of pressure and underutilization expenses creating approximately 70 basis points of pressure.

  Comparison

  The report believes the approximately 18% decline on the earnings day overreacted to margin issues and did not fully reflect the optical and data center opportunities.

  Risks

  China-related underutilization, manufacturing restructuring expenses, and pricing difficulties in the China automotive business may slow margin recovery.

• Analog Devices (ADI)

  A preferred US stock; maintained at Overweight; industrial exposure, higher average selling prices, and its data center power and optical businesses support growth.

  Strengths

  Data center power and optical revenue both grew more than 100% YoY, with book-to-bill ratios above 1; the Empower acquisition expands power opportunities beyond FY27.

  Weaknesses

  Empower's initial revenue contribution is limited, and the larger integrated voltage regulator opportunity will not emerge until after 2028.

  Comparison

  The report believes it has strong margin and free cash flow capabilities, higher average product selling prices, and relatively less direct exposure to competition from new Chinese capacity.

  Risks

  The actual conversion of the long-term opportunity depends on design wins and the pace of data center construction.

• NXP Semiconductors (NXPI)

  A preferred US stock; automotive recovery, the MCU cycle, and new data center businesses provide multiple sources of growth.

  Strengths

  Automotive revenue grew 17% YoY, the Kinara physical AI project pipeline exceeds US$1.5 billion, and 2026 data center revenue is expected to exceed US$500 million.

  Weaknesses

  Western automotive Tier 1 customers continue to buy on a just-in-time basis, while revenue conversion from physical AI projects will mainly occur after 2027.

  Comparison

  The report expects its automotive semiconductor performance to outpace the industry in 2026 and gross margins to improve through channel shipments, utilization, and revenue growth.

  Risks

  There is uncertainty surrounding the timing of restocking and the conversion of long-term projects.

• Allegro MicroSystems (ALGM.US)

  A preferred US stock; automotive electrification, industrial recovery, and data centers provide incremental growth vectors.

  Strengths

  Data center revenue reached 17% of sales, related FY27 revenue is expected to more than double, and automotive growth exceeded its model target of above 10%.

  Weaknesses

  Some channels remain cautious in placing orders.

  Comparison

  The report believes it has scope to outperform peers during a sustained upcycle.

  Risks

  The pace of cyclical recovery and the conversion of automotive and industrial orders will continue to affect earnings leverage.

• Renesas Electronics (6723.JP)

  A preferred Asian stock; automotive, industrial automation, digital power, and storage interfaces jointly drive the recovery.

  Strengths

  It delivered a positive earnings surprise in 2Q, AI data center demand improved utilization and product mix, and selective price increases were implemented beginning in July.

  Weaknesses

  Management stated that selective price increases would not immediately improve gross margins.

  Comparison

  The report identifies it as one of the stronger margin performers this season.

  Risks

  Part of its industrial growth depends on spillover from AI data centers into adjacent industries, while the independent strength of traditional cyclical demand still needs to be verified.

• Yangjie Technology (300373.SZ)

  A preferred Asian stock with a target price of RMB127; benefits from demand for automotive, AI, energy storage, and industrial power semiconductors.

  Strengths

  Demand momentum is strong, overseas packaging and wafer capacity expansion should help capture overseas orders, and stabilizing selling prices and improved operating efficiency support gross margins.

  Comparison

  The report believes its quality and growth momentum are superior to those of some power semiconductor peers.

  Risks

  Changes in power semiconductor pricing and end-market cycles may affect margin improvement.

• SICC (688234.SH)

  A preferred Asian stock with a target price of RMB136; as a SiC substrate supplier, it benefits from device manufacturers' capacity expansion and rising long-term penetration.

  Strengths

  Technological breakthroughs may reduce costs, and it stands to benefit as United Nova Technology expands its monthly 8-inch SiC capacity from 7,000 to 15,000 wafers.

  Comparison

  The report expects it to gain global and domestic market share through its technological leadership and assigns it a valuation framework above the historical average.

  Risks

  If substrate prices decline again after 2027, cost improvements will need to provide sufficient cushioning.

• ON Semiconductor (ON)

  A major beneficiary of AI data center power semiconductors, with growing demand across data centers, automotive SiC, and energy storage.

  Strengths

  Data center revenue is expected to more than double in 2026, customer orders extend into 2027 to 2028, and the 2030 serviceable available market was raised to approximately US$50 billion.

  Weaknesses

  Some power products face near-term supply constraints, and prioritizing data center shipments in 2Q squeezed automotive and industrial supply.

  Comparison

  The report believes the 800V architecture will increase power semiconductor content per rack rather than weaken the related opportunity.

  Risks

  The pace of capacity catch-up and the actual timing of 800V deployment in late 2027 to early 2028 may affect the revenue trajectory.

• Texas Instruments (TXN)

  Its operating recovery is evident, but Morgan Stanley maintains an Underweight rating and a target price of US$255, mainly due to valuation and capacity-expansion pressure.

  Strengths

  Industrial revenue grew approximately 30% YoY, automotive grew in the mid-teens, data center revenue doubled, and 3Q guidance was well above market expectations.

  Weaknesses

  Capital expenditure expansion over the next several years will constrain near-term earnings and free cash flow, while the company faces pricing and share pressure in personal electronics and enterprise markets.

  Comparison

  Fundamental improvement is stronger than the direction indicated by its rating, but the report believes the current valuation does not fully reflect near-term margin pressure.

  Risks

  Manufacturing insourcing, capital expenditure, customer multisourcing, and competition from local Chinese suppliers.

• Microchip Technology (MCHP)

  The MCU inventory correction has ended, and data centers are becoming an important source of growth.

  Strengths

  June-quarter data center revenue grew approximately 98% YoY, CY26 revenue is expected to reach approximately US$1 billion, and PCIe Gen6 switch design projects increased to 12.

  Comparison

  Data center growth is significantly faster than that of the traditional MCU business.

  Risks

  The pace at which new design projects move from validation to volume-production revenue.

• SG Micro (identified as 300671.SZ in the main text; 300661.SZ in the disclosure table)

  Maintained at Equal-weight with a target price of RMB82; AI optical modules provide additional upside optionality.

  Strengths

  Networking and computing are among its fastest-growing end markets, and the upgrade from 800G to 1.6T can increase channel counts and the content of higher-value signal-chain products.

  Weaknesses

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

  Comparison

  Its product portfolio is broad, but valuation appeal must be balanced against continued elevated investment.

  Risks

  The security codes in the report's main text and disclosure table are inconsistent, and optical-module growth has not yet fully offset weakness in other end markets.

• Silergy (6415.TW)

  Maintained at Underweight with a target price of NT$388; cyclical recovery benefits are offset by cost and margin pressure.

  Strengths

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

  Weaknesses

  More than 80% of revenue comes from 8-inch products, wafer cost increases can only be partially passed on to customers, and migration to 12-inch products will take time.

  Comparison

  Its exposure to server and optical power-management chips is relatively limited, and valuation is elevated following the share-price increase.

  Risks

  Wafer price increases will create near-term margin pressure from 2Q26 to 3Q26, while consumer demand remains weak.

• Innoscience (2577.HK)

  Maintained at Equal-weight with a target price of HK$69; industrial applications support near-term growth, while the data center GaN opportunity is more long-term.

  Strengths

  The report still expects 2026 revenue to grow 65% and is constructive on the long-term application of GaN in electric vehicles and robotics.

  Weaknesses

  The data center GaN inflection point may not arrive until 2028 at the earliest, depreciation is increasing, and industry capacity expansion is aggressive.

  Comparison

  Large power semiconductor companies have advantages in supply assurance and automotive certification.

  Risks

  Competition and excess capacity may persist over the next five years, while market growth expectations are high.

• Melexis (MELE)

  Maintained at Equal-weight with a target price of €65; forecasts were raised after earnings, but the pace of recovery still lags peers.

  Strengths

  2Q results exceeded expectations, while both 2H guidance and the gross-margin trajectory improved.

  Weaknesses

  2H revenue is expected to grow only approximately 8% from 1H, below peers at approximately 10%; EBIT margin guidance is approximately 18%, and gross margin may struggle to return to its previous level above 43%.

  Comparison

  Its upgrades reflect catching up with the broad industry recovery rather than clearly outperforming peers.

  Risks

  Intensifying competition in China and insufficient operating leverage.

Key data

• Global analog market growth forecast8% in 2026, 6% in 2027Morgan Stanley global analog model forecast
• Core company portfolio growth forecast22% in 2026, 15% in 2027Expected to significantly outgrow the overall analog market
• STM 4Q industrial revenue growthApproximately 40% YoYPrevious guidance was approximately 30% YoY
• STM 3Q gross marginApproximately 37%Expected to increase by more than 200 basis points sequentially
• Infineon 4Q segment margin guidanceApproximately 23%Below buy-side expectations of approximately 24% to 25%
• Infineon AI data center revenue target€1.6 billion in FY26Previously €1.5 billion; the FY27 target of €2.5 billion may be raised significantly
• Infineon customer reservation agreementsHigh-single-digit billions of US dollars, with terms of 3 to 4 yearsEnhances data center order and capacity visibility
• STM data center revenue guidanceMore than US$1 billion in 2026 and well above US$2 billion in 2027Raised for the third time this year
• ON Semiconductor data center growthMore than doubling in 20262025 revenue exceeded US$250 million
• ON Semiconductor AI data center serviceable available marketApproximately US$50 billion in 2030Previously approximately US$12 billion
• ADI data center analog semiconductor opportunityApproximately US$1 billion to US$1.5 billion per gigawattManagement's estimate of analog semiconductor content in data center infrastructure
• Allegro data center share of sales17%A record high, with FY27 revenue expected to more than double YoY
• Microchip data center revenueApproximately 98% YoY growth in the June quarterExpected to reach approximately US$1 billion in CY26, up approximately 69% YoY
• NXP physical AI project pipelineMore than US$1.5 billionUp from more than US$1 billion in the previous quarter, covering more than 200 distinct customers
• NXP data center revenueMore than US$500 million in 2026Approximately US$200 million in 2025
• United Nova Technology SiC device revenue guidanceApproximately RMB3 billion in 2026, up approximately 100% YoYApproximately 70% to 80% of the growth comes from volume
• United Nova Technology 8-inch SiC capacityIncreasing from 7,000 to 15,000 wafers per monthTarget date is the end of 2026
• China analog semiconductor lead times8 to 10 weeksInventory is declining and supply-demand conditions are improving, but there is not yet evidence of broad-based price increases

Impact & implications

The report believes that post-earnings share-price declines mainly reflect the market's previously excessive expectations for the pace of 4Q margin recovery rather than renewed weakness in industry demand. Healthier channels, book-to-bill ratios above 1, and multiyear data center orders improve revenue visibility through 2027, but individual stock performance will depend on whether price increases, utilization, and product mix can translate smoothly into earnings. AI data centers are simultaneously driving demand for power devices, optical interconnects, and MCUs and are beginning to spill over into adjacent areas such as factory automation and semiconductor equipment.

Risks

• Margin recovery may continue to lag the revenue recovery, especially as European companies remain affected by product mix, foreign exchange, underutilization, and manufacturing-transfer expenses.
• The report believes visibility into FY28 AI data center demand remains insufficient and that the high growth of 2026 to 2027 should not be extrapolated without constraint.
• China's analog and power semiconductor markets have not yet seen broad-based price increases, and intense competition and rising wafer costs may limit earnings conversion.
• The data center GaN inflection point may not arrive until 2028 at the earliest, while new capacity and the entry of large manufacturers may intensify competition.
• Although channel inventories are approaching normal levels, total industry inventory remains above historical levels, and the magnitude and timing of restocking remain uncertain.

What to watch

• Watch the September 2026 AI Infra Summit for updates on 800V rack deployment and the pace of power semiconductor adoption.
• Watch ON Semiconductor's September 16, 2026 analyst day for commentary on inventory, pricing, and end markets.
• Watch the October 2026 OCP Global Summit for incremental commentary on 800V architectures and AI infrastructure.
• Watch the Silicon Photonics Global Summit and the November 2026 PIC Summit Europe for updates on CPO, NPO, PIC, and EIC timelines.
• Watch whether Infineon quantifies in 4Q26 how far FY27 data center revenue could exceed its €2.5 billion target.
• Watch book-to-bill ratios, selective price increases, channel restocking, and margin delivery in companies' 3Q results from October to November 2026.
• Watch the ramp-up of STM's Crolles facility over the next 12 to 18 months and the conversion of 800G and 1.6T optical-module demand into PIC/EIC revenue.