Barclays upgrades Soitec to Overweight, lifts target to €200 on photonics growth

Soitec's stock rose 11.6% to €137.30 after JPMorgan upgraded it to Overweight and raised its price target to €200 from €98, citing strong growth in its Silicon Photonics business. The bank expects Photonics-SOI revenue to exceed €1 billion by 2030. Soitec also revised its Q2 2027 revenue growth outlook to 50% year-on-year, up from 30%, due to increasing demand for its products in AI infrastructure.

Soitec shares rose 11% after JPMorgan upgraded the stock to Overweight, doubling its price target to €200. The bank cited strong demand for its Silicon Photonics business, forecasting €1B revenue by 2030. JPMorgan raised fiscal 2028 revenue and EPS estimates significantly, noting potential manufacturing expansion in Singapore. Concerns about the mobile chip segment persist, but are outweighed by Silicon Photonics growth.

European stocks rose 0.49% on Sep 3, recovering from one-month lows, with Soitec up 10.3% after raising its 2027 revenue growth outlook to 50%. Oil prices eased but remained high, and ECB rate hikes are expected. WPP and Publicis gained after a media account win, while luxury stocks fell. Commerzbank and Deutsche Telekom also rose on positive news.

Soitec (Euronext: SOI) stock surged 12.5% to €126 after raising Q2 FY2027 revenue growth guidance to 50% YoY due to strong demand for Photonics-SOI wafers. CEO Laurent Rémont confirmed multi-year supply agreements and set a $200M+ revenue floor for the fiscal year. The company expects Q2’27 Photonics-SOI revenue to triple from Q2’26 levels. Soitec holds a dominant 95% market share in Photonics-SOI.

Soitec shares rose 6% after the French chip materials maker announced multi-year supply agreements with AI data center optics customers, securing deposits and fixed pricing. CEO Laurent Remont expects over 80% of capacity reservations to be signed within weeks. The company projects photonics-SOI revenue to more than double this financial year, exceeding $200 million. Soitec supplies substrates for nearly all silicon photonics chips, with UBS estimating a 95% market share.

Nvidia shares rose 2.5% on Thursday, closing at $219.34, as tech stocks led a Wall Street rebound. The Nasdaq Composite gained 1.7%, its strongest day since August 4. The Fed's rate hike to 3.75%-4% initially pressured shares, but yields fell below 5%. Other tech companies like AMD and Intel also saw gains. Investors focus on AI spending and earnings, with Nvidia central to the debate.