AI Ignites the Photonics Cycle! Soitec Skyrockets 270% from Being Ignored to Leading the European Stock Market

Investors are flocking to stocks expected to benefit from the artificial intelligence boom, pushing one relatively unknown French company to the top of the European stock market in 2026. Soitec SA, a French semiconductor material manufacturer, has a market value of about 3.1 billion euros (equivalent to 3.7 billion US dollars), and its stock price has risen by nearly 270% this year, making it the best-performing stock in Bloomberg's European large, medium, and small cap index. The stock has already risen by 66% this month, and several analysts have raised their target prices. With the rise of photonics, funds are pouring in for layout After experiencing a two-year period of sharp decline in market value by 85%, Soitec rebounded quickly with its layout in the fast-growing field of photonics. Although this technology currently accounts for a small percentage of the company's revenue, it is increasingly being used by data centers to process high-load computing tasks. Therefore, stocks related to this field are being favored by the market from the US to Asia. Stphane Houri, stock research director at Oddo Bhf, said, "The whole market is crazy about the concept of photonics, which is the direction where funds are chasing. The hype is not limited to just Soitec, although the photonics business only brings in 100 million euros in revenue, what is really driving the stock price up is the clear expectations of the market for the growth prospects of this technology." Driven by the photonics trend, Soitec's stock price has risen by 270% this year Silicon photonics technology uses light to transmit data, and compared to traditional copper cable connections in data centers, it promises faster speeds and higher energy efficiency. Technology suppliers that can optimize data center performance are experiencing a surge in demand from large tech companies, which are investing heavily in building artificial intelligence infrastructure. Optimism and caution coexist Analysts who have been lowering Soitec's target stock price for years are now gradually changing their attitude towards the company. Oddo BHF raised the target price for the stock from 50 euros to 85 euros this week, and the stock surpassed this target price on Thursday. Several other institutions, including Deutsche Bank, have also raised their target prices for Soitec recently. However, some still have doubts about Soitec's sharp rise, with the core uncertainty being whether the growth momentum in the photonics business can fully offset the continued weakness in the smartphon...