[Morgan Stanley: Semtech Data Center Revenue Up 39% QoQ, 1.6T Optical Chips Drive Target Price Increase to $195] According to Deep Tide TechFlow, citing research from Tide Research, Morgan Stanley's August 25 report noted that Semtech's Q2 data center revenue reached $100 million, up 39% quarter-over-quarter (QoQ) and 91% year-over-year (YoY), hitting a record high. This growth was primarily driven by the continued strength of 800G FiberEdge and faster-than-expected certification of 1.6T FiberEdge. 1.6T FiberEdge and CopperEdge are expected to account for over 50% of data center revenue in Q3. The Q3 data center revenue guidance indicates a 45% QoQ increase and a 160% YoY increase, reaching $145 million. The LoRa business also set a record, with Q2 revenue of $58 million, up 31% QoQ and 58% YoY, and is expected to grow another 15% in Q3. Morgan Stanley raised its target price from $175 to $195, maintaining a neutral rating, based on a 34.5x Non-GAAP EPS of $5.66. Revenue forecasts for FY2027 and FY2028 were raised to $1.529 billion and $1.895 billion, respectively, with gross margins adjusted to 56.9% and 62.7%, and EPS revised to $3.69 and $5.65. In Q4, ACC (Active Copper Cable) will be deployed in bulk at major hyperscale customers, complementing 800G and 1.6T. The company has announced the divestiture of its module business, which is expected to structurally improve gross and operating profit margins. In the appendix of this report, Morgan Stanley maintained an overweight rating on NVIDIA and Broadcom, and a neutral rating on AMD, Intel, and Marvell.