AI Data Center Revenue Lifts Chipmaker Outlooks

The read

AI data center demand carried the results filed Nov 2 and 3. AMD's data center revenue nearly doubled, onsemi's AI data center revenue rose 175% and Lattice said FPGA revenue grew about 90% on data center AI demand. Phones were the weak spot: Skyworks guided smartphone revenue down by a low-teens percentage and Navitas said it has substantially exited mobile. Reuters reported that US approval for tools to expand SK hynix's China NAND fab is being held up, an issue tied to Solidigm's proposed New York plants.

What changed

AI and cloud demand

AMD: Third-quarter revenue rose 45% from a year earlier to a record $13.4 billion. Data Center revenue was a record $8.5 billion, up 97%, with the Instinct MI450 launch cited as a driver. Client and Gaming revenue fell 8% to $3.7 billion. AMD guided fourth-quarter revenue to about $17 billion, plus or minus 3%, and said growth should accelerate as Helios rack systems and "Venice" production scale. Shares were up 8.29% after hours at 5:00 p.m. ET and 6.56% at 7:00 p.m. ET (StockTitan). AMD 8-K, Ex. 99.1 (Nov 3)

Lattice Semiconductor: Third-quarter revenue was $291.0 million, up 118.3% from $133.3 million. The total includes $39.1 million from AMI, acquired July 27. Lattice said FPGA revenue grew about 90%, "fueled by accelerating data center AI demand." Fourth-quarter guidance is $325 million to $345 million. Lattice 8-K, Ex. 99.1 (Nov 2)

Memory

SK hynix and Solidigm (reported by Reuters; SK hynix has not confirmed the details): Reuters reported, citing people familiar with the matter, that US officials have held up approval for American chipmaking equipment SK hynix needs to expand production at its Dalian, China NAND plant. Reuters said SK hynix has argued that more Dalian output would help fund its planned US expansion, and that Solidigm, its US unit, plans about $45 billion for two NAND plants in Marcy, New York, possibly reaching about $100 billion over time. Solidigm told Reuters no decision on a specific course of action has been made. Reuters via Yahoo Finance (Nov 3)

SK hynix said it holds a valid license and is bringing in equipment with US government approval, that talks on next year's authorization are ongoing, and that nothing specific has been decided on a US fab. It did not confirm the $45 billion figure or the New York sites. Aju Press (Nov 4 KST, evening of Nov 3 PT)

Foundry and logic

Tower Semiconductor: Third-quarter revenue was a record $526 million, up 33% from $396 million. Tower guided fourth-quarter revenue to $600 million, plus or minus 5%, and targets an annualized silicon photonics run rate of $1.1 billion in the fourth quarter. Net investment in property and equipment was $191 million in the quarter. Tower said its Track-1 300mm buildout in Japan is ahead of schedule and that customer contracts are being extended through 2029. Tower 6-K, Ex. 99.1 (Nov 2)

Power and compound semiconductors

onsemi: Third-quarter revenue was $1,722 million, up 11%. AI data center revenue grew 39% from the prior quarter and 175% from a year earlier. Fourth-quarter revenue guidance is $1,715 million to $1,815 million. Payments for property, plant and equipment were $27.8 million, down from $46.3 million a year earlier. With the planned Ferric acquisition, onsemi raised its 2030 AI data center revenue target by $500 million to more than $3 billion. onsemi 8-K, Ex. 99.1 (Nov 2)

Navitas Semiconductor: Third-quarter revenue was $14.0 million, up 38% from a year earlier. Fourth-quarter guidance is $16.0 million, plus or minus $0.5 million. Navitas said it has "substantially exited the mobile and low-end consumer market" and expects AI infrastructure to exceed 40% of sales by year-end. It closed its Claros acquisition on Oct 6 and makes Gen 5 GaNFast devices in the US through GlobalFoundries. Navitas 8-K, Ex. 99.1 (Nov 3)

RF and mobile

Skyworks Solutions: Fiscal fourth-quarter revenue was $1,046 million, compared with $1,100.2 million a year earlier. The Qorvo combination closed after the quarter ended Oct 2, so the reported quarter is Skyworks alone. For the December quarter, the combined company guided revenue of $1.80 billion to $1.90 billion and expects smartphone revenue to fall by a low-teens percentage from the prior quarter, citing seasonality and Android softness. It expects diversified markets, led by data center and defense, to exceed 40% of sales. Shares were down 17.15% after hours (StockTitan). Skyworks 8-K, Ex. 99.1 (Nov 3)

Equipment

Aehr Test Systems: Fiscal first-quarter revenue was a record $33.0 million, up 200% from $11.0 million. Bookings were $46.7 million. Backlog was $100.9 million at Sept 25, and effective backlog reached $109.3 million by Nov 1. Aehr raised its fiscal 2027 revenue outlook to $150 million. It said it is shipping and installing more than a dozen package-level burn-in systems a month for a hyperscale customer's first AI processor ramp. Shares closed up 26.50% on Nov 3 (StockTitan). Aehr 8-K, Ex. 99.1 (Nov 2)

M&A and restructuring

onsemi and Ferric: onsemi agreed to buy Ferric, which makes integrated voltage regulators that deliver power to AI processors, for $600 million in cash at closing plus up to $175 million tied to revenue milestones. The deal is funded from existing cash and is expected to close by the end of 2026. About 50 Ferric employees, mainly in New York and Silicon Valley, are expected to join onsemi. onsemi 8-K, Ex. 99.1 (Nov 2)

Marvell and Lumentum: A Lumentum employee FAQ filed with the SEC under Rule 425 describes an all-stock deal at 4.5 Marvell shares per Lumentum share, "valued at approximately $100 billion," with Marvell holders owning about 67% of the combined company and Lumentum holders about 33%. The FAQ does not say whether that figure is equity or enterprise value. Closing is expected in about 12 to 18 months, subject to shareholder and regulatory approvals. Lumentum Rule 425 filing (Nov 2)

Policy and trade

Taiwan (reported by Taiwan News): Democratic Progressive Party lawmakers proposed export rules at a Legislative Yuan Economics Committee hearing on Monday, Nov 2. The rules would restrict sales to China of integrated circuits and key wafer fabrication materials, parts and equipment, and block transshipment through third countries. Taiwan News reported that the current law covers 12 categories of wafer fabrication equipment. Proposed penalties run up to 10 years in prison and NT$10 million in fines. The Ministry of Economic Affairs backed the amendment. No vote has been reported. Taiwan News (Nov 3; hearing Nov 2)

Research

Cornell University: Researchers reported silicon-doped aluminum gallium oxide films grown on sapphire with a bandgap above 7 electron volts, past the previous record of about 6 eV, and built a diode and a transistor from the material. Cornell names electric vehicle propulsion, grid equipment and data center power electronics as target uses and says more work is needed before devices are practical. The Nature paper was published Oct 7; Cornell announced it Nov 3. Cornell Chronicle (Nov 3; paper Oct 7)

Watch next

• Nov 9: The one-year stay of the BIS Affiliates Rule ends unless extended. Dechert reported Oct 28 that an extension through Jan 10, 2027 was expected and that no rule had yet been published. (Federal Register 2025-19846; Dechert)
• Nov 10: China's one-year pause on its October 2025 rare earth export controls is set to expire. (Mining Technology via Yahoo Finance)
• Solidigm and Commerce: Oneida County Executive Anthony Picente told Reuters he hopes for an answer "in the next couple of weeks" and noted that a federal investment tax credit expires at year-end. (Reuters via Yahoo Finance)
• onsemi and Ferric: closing expected by the end of 2026. (onsemi 8-K, Ex. 99.1)