Soitec Shares Surge as AI Demand Outpaces Mobile Slump

Revenue for the fiscal 2027 first quarter climbed 23% to 113 million euros, a leap driven primarily by the company's edge and cloud AI division. This segment, which produces wafers for high-speed photonics, recorded 65 million euros in revenue—a 47% increase. The Bernin-based manufacturer, a key supplier to industry giants like TSMC and Samsung, moved its results announcement forward to capitalize on the clear acceleration of demand for optical connectivity in AI infrastructure.

While the AI segment flourishes, the company faces persistent headwinds elsewhere. Mobile communications revenue dropped 10% to 39 million euros, and activity within the automotive sector remains sluggish. Jefferies analyst Janardan Menon noted that while photonics performance is impressive, ongoing inventory corrections in the mobile and automotive markets will likely continue to dampen overall margin expansion. Nevertheless, if the current AI momentum holds, Soitec projects its total fiscal 2027 revenue will climb more than 30% above last year’s 592 million euro total.