Shares dropped 10% as investors reacted to cautious outlook signals and margin pressures despite sequential revenue growth—concerns surfaced around the sustainability of the transformation and potential margin compression from shifting product mix.

• Revenue grew 18% sequentially, driven by a 25% year-over-year increase in high-power markets, marking a return to growth after restructuring.
• High-power business now constitutes a majority of total revenue, reflecting the strategic pivot away from mobile and low-end consumer segments.
• Management highlighted accelerating demand from AI data centers and grid modernization as key growth drivers, projecting a $3.5 billion TAM by 2030 with a combined 60% CAGR.
• Despite revenue gains, investors likely reacted negatively to muted margin commentary and the emphasis on “gradual” margin expansion, implying potential margin compression risks amid product mix transition.
• The cautious tone on scaling new GaN and SiC products and ongoing qualification cycles suggests uncertainty around near-term execution and ramp timelines, weighing on investor confidence.