Short-Term Investments

All investments that are classified as available-for-sale are short-term in nature and are invested in corporate bonds, commercial paper, U.S. Treasuries and agency bonds. The Company classifies available-for-sale investments with maturity dates greater than twelve months as short-term investments rather than long-term investments based on the nature of the securities and the availability for use in current operations. The Company believes this method is preferable because it is more reflective of the Company’s assessment of its overall liquidity position. These investments are owned directly by the Company and are segregated in brokerage custody accounts. The amortized cost, gross unrealized holding gains or losses and fair value of our available-for-sale investments by major investment type are summarized in the tables below (in thousands):


	July 3, 2026
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Aggregate Fair Value

Corporate bonds	$	532,115	$	375	$	(1,403)	$	531,087

U.S. Treasuries and agency bonds	42,445		21		(127)		42,339
Total short-term investments	$	574,560	$	396	$	(1,530)	$	573,426


	October 3, 2025
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Aggregate Fair Value

Corporate bonds	$	554,433	$	3,222	$	(76)	$	557,579
Commercial paper	49,510		6		—		49,516
U.S. Treasuries and agency bonds	66,594		155		(11)		66,738
Total short-term investments	$	670,537	$	3,383	$	(87)	$	673,833

The contractual maturities of available-for-sale investments were as follows (in thousands):


	July 3, 2026		October 3, 2025
Less than one year	$	152,551	$	211,245
Over one year	420,875		462,588
Total available-for-sale investments	$	573,426	$	673,833

We have determined that the gross unrealized losses on available-for-sale securities as of July 3, 2026 and October 3, 2025 are temporary in nature and/or do not relate to credit loss, and therefore, there is no expense for credit losses recorded in our

condensed consolidated statements of operations. Unrealized gains and losses on available-for-sale investments are reported as a separate component of stockholders’ equity within accumulated other comprehensive income.

Long-Term Investments

On May 28, 2026, we completed an investment in IQE plc (“Investee”), which included entering into a Subscription Agreement to purchase newly-issued ordinary shares of Investee (representing approximately 12% of Investee’s issued and outstanding ordinary shares on the date of issuance), for £30.0 million ($40.4 million) (“Equity Investment”), a five-year Convertible Loan Note Agreement with a principal balance of £15.0 million ($20.2 million) (“Debt Investment”, collectively, “Long-Term Investments”) and long-term supply agreements. The Debt Investment has a zero-coupon rate and is expected to be repaid beginning on the third anniversary of the issuance. The Debt Investment is convertible into Investee ordinary shares at a conversion price equal to the same price per share as was paid in the Equity Investment. The conversion option is available if the Debt Investment is repaid prior to the contractual maturity date, based on the occurrence of certain contingent events. Warrants for shares of Investee’s ordinary shares were issued as part of the Debt Investment, which become exercisable in lieu of conversion under the early repayment terms. In accordance with ASC 323, Investments - Equity Method and Joint Ventures, and upon consideration of the totality of our agreements, including our right to appoint two members to Investee’s board of directors, we concluded the Equity Investment is an equity method investment. We have elected to account for the Long-Term Investments using the fair value option for simplification. The Long-Term Investments are recorded within “Long-term investments” on the condensed consolidated balance sheet, and changes in fair value are recorded through “Gain on investment fair value” within the condensed consolidated statement of operations. The Equity Investment is valued using a market approach and the Debt Investment is valued using an income approach based on contractual future cash flows discounted to present value as of the last day of our fiscal quarter.

As of July 3, 2026, the Equity Investment and Debt Investment were recorded at their fair values of $90.0 million and $12.1 million, respectively, and the fair value of the warrants was not material. During the three and nine months ended July 3, 2026, we recorded a net gain of $41.5 million on Long-Term Investments, comprised of a gain of $49.6 million on the Equity Investment and a loss of $8.1 million on the Debt Investment.