Siltronic Raises Outlook on AI-Driven Wafer Demand

Siltronic AG significantly raised its 2026 revenue guidance, projecting approximately €1.35 billion – in line with the prior year’s level – after a stronger-than-expected third quarter driven by booming demand for silicon wafers used in artificial intelligence (AI) applications. Shares of the German semiconductor manufacturer jumped over 10% following the announcement, signaling renewed investor confidence.

The upward revision marks a substantial shift from previous forecasts, which anticipated a low-to-mid single-digit percentage decline in revenue. This turnaround is primarily fueled by robust demand for 300-millimeter wafers, essential components for advanced chip production, particularly in servers powering AI-driven data centers. While demand from smartphone and PC manufacturers remains sluggish due to memory chip shortages, the strength of the AI server market is offsetting these weaker segments. The company also noted a positive trend in pricing for 300-millimeter wafers and stabilization for smaller wafers.

Siltronic reported a Q3 revenue increase of over 18% year-over-year, reaching €355.4 million, alongside a nearly 25% increase in operating profit to €81.3 million. Despite the positive operating results, the company continues to report a net loss of €55 million, primarily due to high depreciation charges related to the construction of a new factory in Singapore. This depreciation, however, does not detract from the core message of improving demand and profitability.

Adding to the positive sentiment, the State of Norway recently increased its stake in Siltronic to 3.19%, acquiring an additional 1.06% of shares. This move suggests strong confidence in the company’s long-term prospects. Analyst expectations have also shifted, with Jefferies reaffirming a ‘Buy’ rating and a price target of €130, and Citigroup anticipating an increase in consensus estimates following the revised guidance. The improved outlook, coupled with the rising stock price, indicates a significant positive shift in Siltronic’s business momentum.