Soitec shares surged about 23% after the chip materials supplier beat sales expectations and pointed to accelerating AI-linked photonics demand, while STMicroelectronics and Besi fell after weaker near-term updates.
European semiconductor stocks diverged after earnings updates, with Soitec shares rising about 23% as the French semiconductor materials supplier beat sales expectations and highlighted accelerating demand for photonics wafers used in artificial intelligence applications. The company had already reported unaudited first-quarter fiscal 2027 revenue of €113 million for the period ended June 28, 2026, up 23% year-on-year at constant currency and scope and above guidance of around 15%, driven mainly by faster growth in Photonics-SOI. Soitec said second-quarter revenue should grow more than 30% and that Photonics-SOI revenue in fiscal 2027 should more than double from slightly above $100 million in fiscal 2026, assuming no material disruption in the AI market. Elsewhere, STMicroelectronics fell 15% after quarterly profit missed expectations, while Dutch chip equipment maker Besi dropped around 3% despite strong orders as revenue came in slightly below forecasts and investors weighed already-elevated growth expectations. Nokia said AI-related demand remained strong but supply constraints persisted in parts of the semiconductor market, with CEO Justin Hotard also citing rising memory prices. Alphabet earlier reported record cloud growth but faced investor scrutiny over a $15 billion increase in planned 2026 capital spending.