European Semiconductor Stocks Diverge Amid AI Demand and Growth Expectations
On July 23, European semiconductor stocks showed mixed performance as investors assessed near-term results against elevated growth expectations. Soitec's shares surged nearly 23% after the French company reported strong photonics demand linked to artificial intelligence applications, with revenue from its Photonics-SOI business expected to more than double year-over-year and second-quarter revenue forecasted to grow over 30%. In contrast, STMicroelectronics fell around 15%, while Besi dropped about 3% despite robust order bookings. Both companies missed quarterly revenue expectations, prompting concerns among investors. Analysts noted that consensus forecasts already assume strong growth in the coming years, raising hurdles for further upside. Meanwhile, Nokia highlighted ongoing supply constraints and rising memory prices due to AI demand but reported a second-quarter profit beat with little impact on its stock price.
Tickers: $STM
Topics: AI demand earnings reports European stocks semiconductors