Soitec Stock Gains as Upbeat ASML Forecast Lifts European Chip Sector

Shares of French semiconductor materials manufacturer Soitec (SOIT.PA) rose on Monday, buoyed by a positive outlook from industry bellwether ASML that lifted sentiment across the European chip sector. The stock climbed 2.4% to trade at €105.25 in Paris, touching a session high of €107.8.

Sector-Wide Boost from ASML

The primary catalyst for the rally was an upgraded forecast from ASML, the world's largest supplier of semiconductor manufacturing equipment. The Dutch firm announced it now expects annual sales between €43 billion and €45 billion, a significant increase from its previous guidance of €36 billion to €40 billion.

ASML also raised its gross margin projection to a range of 54% to 56%, up from 51% to 53%. As a key indicator of demand in the chip ecosystem, ASML's optimistic outlook signaled robust capital spending by foundries, which in turn benefits materials suppliers like Soitec.

Technicals and Company Outlook

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The advance also comes as Soitec's stock attempts to recover from a steep decline. According to the source, shares had fallen by more than half from their 52-week high of €200.5, a move that left the stock in technically oversold territory that can attract buyers.

Investors may also be positioning ahead of the company's next quarterly earnings report, scheduled for July 28. This will be a key update for the market under new CEO Laurent Rémont, who took charge in April with a stated goal of restoring positive free cash flow.

Supportive Macro Environment

Broader market conditions provided a favorable backdrop for the move. Data showing French consumer inflation eased to 1.8% year-on-year in June supported risk appetite on the Paris bourse, while a positive session for the tech-heavy Nasdaq in the U.S. also contributed to the constructive sentiment. However, without a fresh, company-specific catalyst, the stock's recovery remains tentative.