Shares in AIM-listed semiconductor products firm IQE (LON:IQE) jumped 10% after it increased its FY sales forecast on strong demand. Revenue is now expected to grow by 30% to around £130 million against a previous forecast of a 20% increase.
Sales top forecasts on insatiable AI demand
The firm said H1 trading had exceeded forecasts, with sales now expected to hit at least £64 million. Demand for its InP (Indium Phosphate) solutions in particular is accelerating due to their critical role in enabling optical photonics products for data centres and AI infrastructure.
Growth was also supported by aerospace and defence applications, as well as ‘robust’ demand in 3D sensing and wireless products. Thanks to its raised sales outlook, EBITDA is now expected to roughly quadruple from last year’s £3.2 million.
CEO Jutta Meier commented: ‘I am very pleased H1 trading exceeded our expectations. Our long-established leadership in InP and other key material systems means we are critically embedded in supply chains enabling industry trends that will continue to deliver further progress in H2. I remain extremely excited about the significant opportunities ahead for the transformed IQE.’
2026 has been a remarkable year for IQE and itrs investors, with the shares up more than 700%. Just last month we flagged how the company had bagged a multi-year deal with a US partner for AI-driven products.
The excitement is all down to the firm’s InP solutions which help power next-generation products using photonics. In case the significance of photonics wasn’t already obvious, it’s the division driving the unusually strong revenue and cash flow growth at safety and technology group Halma (LON:HLMA).
Photonics is also the reason for US private equity firm Arlington offering a 40% premium to take over Gooch & Housego (LON:GHH). Therefore, despite their incredible run already this year, IQE clearly has prized assets and we wouldn’t be surprised if the shares kept going or the company attracted a buyer.
Read the press release here: https://www.iqep.com/investors/
