Abstract - Semtech (SMTC) Initiated Buy on 1.6T and NPO • Initiates with Buy, $180 PT (25x FY28E P/E). • Transitioning from an analog chip company to an AI interconnect beneficiary w portfolio spanning ACC, TIA, drivers, lasers and NPO analog solutions. • Guides FY27 AI revenue >$350M; we forecast $466M (FY27E) → $1.22B (FY28E), driven by 1.6T. • Google TPU expansion to be a key catalyst for CopperEdge ACC. • NPO adoption could be the next major growth leg beyond 2027 as DSP removal increases analog content. • Believes NVIDIA and leading CSPs are evaluating NPO deployments. • NPO market size : we forecast 38M NPO optical engines in 2028, suggesting a multi-billion-dollar TIA/driver TAM • Acquisition of HieFo strengthens its laser portfolio and expands optical content opportunities. #AI# #Semiconductors# #OpticalNetworking# #SMTC#

Abstracts of Addressing Recent Debates on LT Capex and NVDA Platform Content Away from Memories • Recent CSP Earnings Review on Capex: Amazon to $220bn, Google $195-205bn, Meta $130-145bn • U.S. CSP capex forecast at $0.8tn/$1.2tn / $1.4tn in 2026/2027/28 (+45% / +20% YoY in 27/28), supported by healthy balance sheets • Capex growth expected to moderate to +20% / +15% YoY in 2028/29 as CSPs prioritize returns & FCF & uncertainties over AI model competition • Top 5 debt issuance seen at $257bn / $419bn in 2026/27 (31-35% of capex), still manageable • Cumulative debt issuance could reach ~$421bn by 2028, yet remains well-supported • Balance sheets stay very healthy (ex-Oracle): net leverage only ~0.5x (EBITDA basis) by 2028/29 • Net debt-to-equity ratio projected at just 18% by 2029 despite heavy capex

• Reiterate our July 2’s report of Nvidia cutting memory: Vera CPU SOCAMM from 192GB → 96GB → selective SKUs to 64GB by 1Q27
• Rubin Ultra HBM stepped down from 384GB to 192GB/256GB (HBM4/4E); 8-Hi design finalized, yet 12-Hi remains on line up
• Competitors already on lower configs: AMD MI450 Custom and Google TPU Humufish already 8-Hi
• Scale-up expanding via NVL576 w NPO optics to offset reduced memory content
• Nvidia platform OE shipments estimated at 5.8m / 8.1m units in 2027/28
• Still positive on AI trends; prefer GPU / CPU / Optics, cautious on memory commodities
 Recommendations: 1) Nvidia GPU: NVDA (Buy), Hon Hai (2317 TT), SMCI (Buy) 2) CPU: INTC (Buy), AMD (Buy), ASE (3711 TT, ASX, Buy) 3) Optics NPO: LITE (Buy), MRVL (Buy), SMTC (Buy), TSEM (Buy), Bizlink (3665 TT Buy), Browave (3163 TT) #capex# #NVDA# #RUBIN# #Memory# #HBM#