$SMTC ’s earnings today were pretty interesting given what I wrote before on Substack. My main point was never just that AI data center demand would push optical module volumes higher. What I cared about more was how much more Semtech could earn from each module as the market moves from 800G to 1.6T and eventually 3.2T. Today’s results seem to support the first part of that idea. Signal Integrity revenue grew 64% YoY, and Q3 revenue guidance came in at around $410M, well above expectations. Management also talked about strong bookings and record backlog, so the demand side clearly looks strong. The next thing I’m watching is content per module. After the HieFo acquisition, Semtech now has InP gain chips and lasers on top of its existing TIA and driver portfolio. At 800G, its content per module is only in the high single digit dollar range. At 3.2T, that could move to around $80. So for me, the first part of the thesis is starting to show up in the numbers. The second part, much higher content per module as 1.6T and 3.2T ramp, is still ahead.