BlockBeats News, May 27th, the "Stock God" Serenity posted on social media, stating that they have taken a position in the semiconductor company XFAB, believing that the current $12.8 billion market value of the stock is attractive, and detailed the core reasons for this.

Serenity stated that the key catalyst is the "EU Chip Act 2.0" to be announced this week, which is expected to focus on supporting photonic companies. XFAB has benefited from this before and is likely to be included again this time. The company's business is deeply integrated with NVIDIA, mainly in silicon photonics/CPO and power semiconductor areas. In the silicon photonics field, the company is preparing for large-scale production of NVIDIA's photonics evaluative transceivers, optical switches, and other products through the "photonixFAB" project, a relationship that is believed to be potentially overlooked by the market. In the power semiconductor area, as a SiC (silicon carbide) foundry, the company collaborates with companies like Nanosilicon and Power Integrations to support NVIDIA's 800V DC power supply solution.

Serenity believes that XFAB's current P/B ratio of about 1.29 is similar to when they first took a position in SOI, indicating that it is undervalued after being dragged down by its traditional business. They personally estimate that its long-term P/E ratio for 2028 will be between 6.5 and 8.5 times. In addition, the company has received strong endorsements from European and American governments, including €128 million from the EU Chip Act and $50 million from the U.S. Department of Commerce, with more funding possibly on the way; the government is essentially funding its capital expenditures. Analysts summarized that if XFAB can replicate Soitec's turnaround path, leveraging a low P/B ratio and high-growth business to shed the burden of the traditional automotive business, its current market cap of around $1.3 billion will be very attractive.

BlockBeats Note: Serenity is a highly influential senior trader on the Reddit forum WallStreetBets (WSB). Their core research findings are consistently publicly available for free, with a research framework focusing on the key supporting links in the NVIDIA AI chip industry chain. By thoroughly examining the indispensable "screw" components in the chip manufacturing and packaging process, they accurately identify the critical chokepoints in the supply chain and use this to explore upstream assets with scarcity and bargaining power for positioning.