Serenity: Semtech Sees Strong Optical Communications Demand, Orders Cover Over 70% of Fiscal 2028

Odaily News Trader Serenity stated that Semtech's latest earnings report shows continued strong demand related to AI optical communications. Management noted that in the current optical products market, "availability is more important than pricing," and booked orders are not expected to be affected by price fluctuations in the near term.

Semtech expects its market share for 1.6T FiberEdge TIAs and drivers to exceed 50% by the end of the year, with product certification progress ahead of schedule. All target orders for the current fiscal year have been secured, and order coverage for the next fiscal year has already surpassed 70%. Existing production capacity may even be insufficient to meet demand in the second half of fiscal 2028.

Financially, Semtech reported Q2 revenue of $341.9 million, beating the expected ~$329 million. Q3 revenue guidance reached $410 million, significantly above the market expectation of ~$360 million. Serenity stated that this earnings performance was "truly impressive" and signaled positively for the ramp-up of 1.6T optical modules.