IQE PLC

IQE's analyst-consensus fair value estimate has been revised upward from £0.57 to £0.61 per share, reflecting a more bullish demand outlook. The revision follows recent Buy ratings from Deutsche Bank and Panmure Liberum, with Deutsche Bank raising its price target to 70 GBp and Panmure Liberum upgrading the stock to Buy with a 50 GBp target. The company also issued fiscal 2026 guidance for revenue growth exceeding 30% year on year and announced a multi-year US$14,000,000 production order for AI and data centre applications. Additionally, IQE completed follow-on equity offerings totaling £13,000,000 at £0.198 per share and entered a multi-year supply agreement with Tower Semiconductor for indium phosphide epiwafers. The fair value update incorporates a revenue growth assumption raised from 17.78% to 22.21% and a net profit margin trimmed from 4.84% to 4.28%.

Shares of Applied Materials rose 7.7% in morning trading after peer Taiwan Semiconductor Manufacturing announced plans to raise chipmaking prices by up to 10% starting in 2027 and wafer supplier IQE plc raised its guidance. The developments reaffirmed robust demand for AI and data-center chips, with industry forecasts projecting that global chipmaking equipment sales could reach a record high by 2028. As a key supplier of advanced chipmaking tools, Applied Materials stands to benefit from this growth, underscored by Taiwan Semiconductor's $100 billion expansion plan in Arizona.

UK semiconductor wafer maker IQE has raised its full-year revenue growth forecast to above 30 percent, up from 20 percent previously, after first-half trading beat expectations. The company said core profit would reach the low-teens millions of pounds, driven by accelerating demand for its Indium Phosphide solutions used in AI infrastructure and data centres. The improved outlook was also supported by strength in aerospace and defence, alongside robust demand for 3D sensing and wireless products. IQE expects first-half revenue of at least £64 million, with trading exceeding management expectations across all core businesses.