Soitec Shares Surge After Upgrading Revenue Forecast on AI Chip Demand

Shares of Soitec (SOIT) jumped as much as 12.5% on Tuesday after the French semiconductor materials manufacturer sharply raised its revenue forecast, citing a surge in demand for components critical to artificial intelligence infrastructure.

Guidance Upgraded

In a trading update, Soitec announced it now expects second-quarter fiscal 2027 revenue to grow by approximately 50% year-on-year at constant currency and scope. This marks a significant increase from its previous guidance of more-than-30% growth issued just weeks earlier.

The company attributed the revised outlook to accelerating demand for its Photonics-SOI wafers. These specialized substrates are essential for manufacturing silicon photonics chips, which are used in high-speed optical interconnects within AI data centers. Soitec also noted it has improved near-term visibility into customer orders and has demonstrated an ability to increase production capacity to meet the rising demand.

AI Demand and Market Position

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The upgraded forecast follows recent bullish commentary from CEO Laurent Rémont, who told Reuters that Soitec is securing multi-year supply agreements with customers. Rémont described the company's target of over $200 million in Photonics-SOI revenue for the current fiscal year as "absolutely a floor."

Underscoring the rapid growth, Soitec disclosed that revenue from Photonics-SOI in Q2 2027 is projected to be approximately three times the level seen in Q2 2026, which was around $25 million. Analysts estimate that Soitec holds a dominant 95% share of the Photonics-SOI market, leaving it well-positioned to capture the upside from AI-related spending with little near-term competition.

Market Reaction

Soitec's stock climbed to €126 during the session, a decisive move that stood in contrast to the broader market. France’s CAC 40 index was up only about 0.4%, indicating the surge was a company-specific re-rating rather than a market-wide trend. Despite the significant single-day gain, the stock remains a considerable distance from its 52-week high of €200.50.