STOCKS | Soitec Raises Guidance as AI Demand Drives Shares Higher

Soitec raised its second-quarter revenue growth guidance for constant-currency, comparable consolidated reporting to about 50% from more than 30% previously, and its Paris-listed shares rose more than 15% on Thursday. According to Sina Finance, the French semiconductor materials maker said the upgrade was driven by accelerating demand for Photonics-SOI, improved visibility on customer orders, and flexibility to adjust capacity to match market demand. The company said Photonics-SOI revenue in the quarter ending in September was expected to be about three times the level of a year earlier, when the business generated about $25 million. For the full fiscal year ending in March 2027, Photonics-SOI revenue is expected to reach $250 million to $300 million, above its previous guidance for more than doubling year on year. Citigroup analysts wrote in a client note that investors are likely to favor the strong AI backdrop and that Soitec's higher outlook could lift consensus fiscal 2027 earnings by a high-single-digit percentage. Soitec said it continues to sign multi-year supply agreements with several Photonics-SOI customers and expects to finalize agreements with eight of its 10 main Photonics-SOI customers in the coming weeks.