Serenity: XFAB Upgraded to "Buy," AI and Photonic Chips May Unlock Long-Term Growth Potential

BlockBeats News, July 6 — Serenity shared Kelper's latest research report, stating that the semiconductor wafer foundry XFAB has been upgraded to a "Buy" rating. The report suggests that Melexis demand is continuously improving, and the demand for silicon carbide (SiC), gallium nitride (GaN), and photonic chips driven by AI is expected to offset cyclical fluctuations in the automotive industry. Meanwhile, Western specialty wafer foundries, which are scarce, are receiving higher valuation premiums. Data shows that XFAB's current 2027 EV/EBITDA is only 4.8x, significantly lower than the industry median of 14.5x. Serenity noted that this indicates XFAB's core fundamentals are improving, but it is more optimistic about the growth potential of photonic chips, which the market has yet to fully price in. It highlighted that XFAB leads the EU PhotonixFAB project, which aims to establish a European silicon photonics supply chain and promote the mass production of photonic chips. In the future, XFAB is expected to benefit from the growing demand for optical communication in data centers driven by AI giants like NVIDIA. However, since related commercial orders have not yet been implemented on a large scale, traditional valuation models still struggle to reflect this long-term growth logic. [Original Link]