{"id":2194332,"date":"2026-10-13T03:37:07","date_gmt":"2026-10-13T00:37:07","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=2194332"},"modified":"2026-10-13T03:37:07","modified_gmt":"2026-10-13T00:37:07","slug":"this-french-ai-stock-is-up-570-in-2026-analysts-see-a-further-90-upside","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=2194332","title":{"rendered":"This French AI stock is up 570% in 2026: Analysts see a further 90% upside"},"content":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/images.euronews.com\/articles\/stories\/09\/94\/91\/05\/1200x675_cmsv2_77bb5e44-116d-5a41-b789-4aec91725c2f-9949105.jpg&#8221;]<\/p>\n<article id=\"abe-2933237-pos1-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1\" data-nid=\"2933237\" data-cid=\"9950091\" data-part-label=\"Partner content\">\n<figure id=\"abe-2933237-label-pos1-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/95\/00\/91\/189x106_cmsv2_43f4bd38-bd5b-5e0d-93c3-14e6feba31ec-9950091.jpg\" loading=\"lazy\" alt=\"Saint Alexander Nevsky Cathedral in Sofia, the capital of Bulgaria \" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Destinations<\/p>\n<div class=\"the-media-object__title  \">\n<p>    From Sofia to Verona: Europe\u2019s 10 best city breaks for 2027\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2933210-pos2-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1\" data-nid=\"2933210\" data-cid=\"9949906\" data-part-label=\"Partner content\">\n<figure id=\"abe-2933210-label-pos2-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/99\/06\/189x106_cmsv2_31d09797-4d65-51db-b78c-a3ab22fadc40-9949906.jpg\" loading=\"lazy\" alt=\"From left, Germany&apos;s Chancellor Friedrich Merz, Italy&apos;s Prime Minister Giorgia Meloni and Belgium&apos;s Prime Minister Bart De Wever\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Europe News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Germany, Italy and Belgium call for \u2018emergency brake\u2019 on EU laws\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2933213-pos3-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 the-media-object--has-video\" data-nid=\"2933213\" data-cid=\"9949933\" data-part-label=\"Partner content\">\n<figure id=\"abe-2933213-label-pos3-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/99\/33\/189x106_cmsv2_e6578544-f279-5617-8eaf-eff75ee77bf7-9949933.jpg\" loading=\"lazy\" alt=\"Rescuers evacuate an injured civilian after a residential building was hit following a Russian air attack in Kharkiv\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    No Comment<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Russia pounds Kharkiv and Lviv region with missiles and drones, killing three civilians\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2933109-pos4-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1\" data-nid=\"2933109\" data-cid=\"9949433\" data-part-label=\"Partner content\">\n<figure id=\"abe-2933109-label-pos4-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/94\/33\/189x106_cmsv2_c17ad27c-0efa-55d5-a6e5-2d02d674fc45-9949433.jpg\" loading=\"lazy\" alt=\"Winners of the Future Engineers competition\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Tech News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Uzbekistan\u2019s young engineers build talking gloves and drone hunters\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2933237-pos1-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2\" data-nid=\"2933237\" data-cid=\"9950091\" data-part-label=\"Partner content\">\n<figure id=\"abe-2933237-label-pos1-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/95\/00\/91\/189x106_cmsv2_43f4bd38-bd5b-5e0d-93c3-14e6feba31ec-9950091.jpg\" loading=\"lazy\" alt=\"Saint Alexander Nevsky Cathedral in Sofia, the capital of Bulgaria \" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Destinations<\/p>\n<div class=\"the-media-object__title  \">\n<p>    From Sofia to Verona: Europe\u2019s 10 best city breaks for 2027\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2933210-pos2-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2\" data-nid=\"2933210\" data-cid=\"9949906\" data-part-label=\"Partner content\">\n<figure id=\"abe-2933210-label-pos2-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/99\/06\/189x106_cmsv2_31d09797-4d65-51db-b78c-a3ab22fadc40-9949906.jpg\" loading=\"lazy\" alt=\"From left, Germany&apos;s Chancellor Friedrich Merz, Italy&apos;s Prime Minister Giorgia Meloni and Belgium&apos;s Prime Minister Bart De Wever\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Europe News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Germany, Italy and Belgium call for \u2018emergency brake\u2019 on EU laws\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2933213-pos3-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 the-media-object--has-video\" data-nid=\"2933213\" data-cid=\"9949933\" data-part-label=\"Partner content\">\n<figure id=\"abe-2933213-label-pos3-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/99\/33\/189x106_cmsv2_e6578544-f279-5617-8eaf-eff75ee77bf7-9949933.jpg\" loading=\"lazy\" alt=\"Rescuers evacuate an injured civilian after a residential building was hit following a Russian air attack in Kharkiv\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    No Comment<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Russia pounds Kharkiv and Lviv region with missiles and drones, killing three civilians\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2933109-pos4-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2\" data-nid=\"2933109\" data-cid=\"9949433\" data-part-label=\"Partner content\">\n<figure id=\"abe-2933109-label-pos4-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/94\/33\/189x106_cmsv2_c17ad27c-0efa-55d5-a6e5-2d02d674fc45-9949433.jpg\" loading=\"lazy\" alt=\"Winners of the Future Engineers competition\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Tech News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Uzbekistan\u2019s young engineers build talking gloves and drone hunters\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article class=\"helper-site-row o-article-newsy\">\n<div class=\"helper-site-container o-article-newsy__container\">\n<div class=\"o-article-newsy__main\">\n<header class=\"h-grid o-article-newsy__main__header\">\n<nav aria-label=\"Breadcrumbs\" class=\"c-article-breadcrumbs\">\n<div id=\"adb-article-breadcrumb\" class=\"c-article-breadcrumbs__list\">\n<p>                          Business<\/p>\n<p>                          Markets<\/p><\/div>\n<\/nav>\n<h1 class=\"c-article-redesign-title\">\n                            This French AI stock is up 570% in 2026: Analysts see a further 90% upside<\/h1>\n<div class=\"c-article-image-video u-position-relative \">\n<div class=\"js-superdiv u-aspect-ratio-16x9 u-position-relative \" data-controller=\"video-player\" data-sponsored=\"Partner content\"><img fetchpriority=\"high\" decoding=\"async\" class=\"js-poster-img c-article-media__img\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/91\/05\/1536x864_cmsv2_77bb5e44-116d-5a41-b789-4aec91725c2f-9949105.jpg\" width=\"1536\" height=\"864\" loading=\"eager\" alt=\"Yann Lapnet, holds a silicon wafer with chips etched into at Applied Materials as Vice President Kamala Harris tours a site where Applied Materials plans to build a $4 billion\"><\/div>\n<div class=\"c-article-caption u-position-absolute\"><i id=\"article-caption-content\" class=\"c-article-caption__content\"><span class=\"c-article-caption__text\"><br \/>\n              Yann Lapnet, holds a silicon wafer with chips etched into at Applied Materials as Vice President Kamala Harris tours a site where Applied Materials plans to build a $4 billion<br \/>\n                    <span class=\"u-color-white\">&#8211;\u00a0<\/span><span class=\"c-article-caption__copyright\">Copyright\u00a0<\/span><span class=\"c-article-caption__credit\">NY Times<\/span><\/span><\/i><\/div>\n<div class=\"c-article-image-copyright c-article-image-copyright--novideo\">\n      Copyright\u00a0NY Times\n  <\/div>\n<\/div>\n<\/header>\n<div class=\"h-grid o-article-newsy__main__body u-article-content\">\n<div class=\"o-article-newsy__contributors-publication-date\">\n<div class=\"c-article-contributors\">\n  By&amp;nbspPiero Cingari\n<\/div>\n<div class=\"c-article-publication-date\" data-timestamp=\"1791862627\">\n                    Published on                 <time datetime=\"2026-10-13 05:37:07 +02:00\">13\/10\/2026 &#8211; 5:37 GMT+2<\/time><span class=\"c-article-publication-date__bullet\">\u2022<\/span>Updated<br \/>\n                                     <time datetime=\"10:10\">10:10<\/time><\/div>\n<\/div>\n<div class=\"c-article-share-comment u-align-items-center u-display-flex\"><span class=\"c-article-share-comment__links u-align-items-center u-display-flex u-justify-content-center js-c-article-share-comment-share\"><span 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height=\"48\" alt=\"bluesky\" class=\"u-show-for-desktop\" loading=\"lazy\"><span class=\"u-display-flex u-gap-1 u-show-for-mobile-only\"><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-threads.svg\" width=\"24\" height=\"24\" alt=\"threads\" loading=\"lazy\"><span>Threads<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-threads.svg\" width=\"48\" height=\"48\" alt=\"threads\" class=\"u-show-for-desktop\" loading=\"lazy\"><span class=\"u-display-flex u-gap-1 u-show-for-mobile-only\"><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-whatsapp.svg\" width=\"24\" height=\"24\" alt=\"whatsapp\" loading=\"lazy\"><span>Whatsapp<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-whatsapp.svg\" width=\"48\" height=\"48\" alt=\"whatsapp\" class=\"u-show-for-desktop\" loading=\"lazy\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"c-article-summary\">\n        Despite its extraordinary rally, Bank of America analysts have upgraded Soitec SA stock to Buy and see potential for a further 90% upside.<br \/>\n    <\/h2>\n<div class=\"c-article-content c-article-content--business js-article-content\">\n<p>A little-known French semiconductor company has become one of Europe&#8217;s biggest artificial intelligence stock market winners in 2026, thanks to a technology few competitors can produce.<\/p>\n<div>\n<div class=\"c-ad u-show-for-mobile-only\">\n<div class=\"c-ad__placeholder\"><img decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt loading=\"lazy\"><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<div class=\"c-ad u-show-for-desktop\">\n<div class=\"c-ad__placeholder\"><img decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt loading=\"lazy\"><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<\/div>\n<p>Shares in Soitec SA have risen almost sevenfold this year, from about \u20ac23 at the start of January to roughly \u20ac154 on Monday afternoon in Paris. <\/p>\n<p>Yet the company reported a 34% decline in annual revenue last year.<\/p>\n<p>Now, Bank of America believes the stock could nearly double again.<\/p>\n<p>On Friday, the US bank upgraded Soitec from Neutral to Buy and raised its price target from \u20ac152 to \u20ac300, implying more than 90% upside.<\/p>\n<p>So what is driving this rally, and how much of it rests on a single product?<\/p>\n<div class=\"widget widget--type-flourish widget--size-fullwidth widget--align-center\">\n<div class=\"widget__wrapper\">\n<figure class=\"widget__figure\"><figcaption class=\"widget__caption\"><span class=\"widget__captionWrap\"><span class=\"widget__captionText\">Soitec shares have risen almost sevenfold in 2026<\/span><\/span><\/figcaption><\/figure>\n<\/div>\n<\/div>\n<h2><strong>The French company behind a critical AI technology<\/strong><\/h2>\n<p>Soitec does not make the processors that train artificial intelligence models. It makes the engineered silicon wafers on which other semiconductor companies build their chips.<\/p>\n<p>Based in Bernin, near Grenoble, the company was spun out of French research institute CEA-Leti in 1992. <\/p>\n<p>It employs more than 2,000 people and holds more than 4,700 patents.<\/p>\n<p>Earlier this month, Euronews journalist Val\u00e9rie Gauriat visited Soitec&#8217;s production facilities for the Made in Europe series. <\/p>\n<p>Inside its clean rooms, silicon wafers undergo dozens of manufacturing stages, allowing the company to manipulate incredibly thin layers of material. <\/p>\n<p>&#8220;Our job is to run faster than the competition,&#8221; Chief Technology Officer Christophe Maleville told Euronews.<\/p>\n<p>That expertise is becoming increasingly valuable as AI data centres need to transfer enormous amounts of information between processors.<\/p>\n<p>Silicon photonics offers a faster, more energy-efficient alternative to traditional copper connections by using light instead of electrical signals.<\/p>\n<p>Soitec supplies the specialised silicon wafers used to manufacture these optical chips, giving it a critical role in the expanding AI infrastructure market.<\/p>\n<p>Wall Street was not the first to make the case. <\/p>\n<p>On 11 March, a pseudonymous account on X called Serenity, which then had about 100,000 followers, said it had taken a large position in Soitec, arguing that the company had a near monopoly in wafers for AI optical links and that the shares could triple within two years. <\/p>\n<p>Soitec jumped 16% that day and nearly 30% over two sessions, despite no company announcement explaining the rally.<\/p>\n<h2><strong>Why Bank of America sees a near monopoly in AI photonics<\/strong><\/h2>\n<p>&#8220;We estimate that Soitec currently holds ~95% market share in supplying Photonics-SOI wafers,&#8221; Bank of America analyst Oliver Wong and his colleagues said.<\/p>\n<p>Rivals, including Taiwan&#8217;s GlobalWafers, are attempting to enter the market.<\/p>\n<p>However, the bank expects Soitec&#8217;s technological expertise and decades of manufacturing experience to protect its dominant position.<\/p>\n<p>That advantage could become increasingly valuable as AI data centres grow larger and require more optical connections between processors.<\/p>\n<p>Bank of America estimates that the total wafer area required for photonic chips will expand by approximately 60% annually between 2026 and 2030.<\/p>\n<p>In other words, demand for Soitec&#8217;s materials could grow considerably faster than the number of AI processors themselves.<\/p>\n<p>The company&#8217;s latest forecasts already suggest a major acceleration.<\/p>\n<p>In September, Soitec projected that photonics revenue would reach between 2.5 and three times the previous year&#8217;s level in the financial year ending March 2027.<\/p>\n<p>It also forecast approximately 50% growth in total revenue for the September quarter.<\/p>\n<p>Meanwhile, Soitec expects to secure multi-year capacity agreements with eight of its roughly ten largest photonics customers.<\/p>\n<p>These agreements could make future demand more predictable, supporting investment in additional production capacity.<\/p>\n<div class=\"c-widget-related\" data-stories-id data-event=\"widget_related\">\n<div class=\"c-widget-related__title\"><b class=\"c-widget-related__title__text\" lang=\"en\">Related<\/b><\/div>\n<ul class=\"c-widget-related__list\" id=\"abe-article-related-1\">\n<li class=\"c-widget-related__item\">French MPs push exit tax on crypto above \u20ac800,000 and fines for undeclared wallets<\/li>\n<\/ul>\n<\/div>\n<h2><strong>How AI could reshape Soitec profitability<\/strong><\/h2>\n<p>Until recently, Soitec depended heavily on the smartphone industry, which accounted for roughly half of its revenue last fiscal year.<\/p>\n<p>But in the June quarter, its broader Edge &amp; Cloud AI division generated 57% of sales.<\/p>\n<p>Bank of America expects that transformation to accelerate.<\/p>\n<p>It projects photonics revenue will climb from \u20ac92 million in fiscal 2026 to approximately \u20ac680 million in fiscal 2029.<\/p>\n<p>That would represent almost half of projected group revenue of \u20ac1.43 billion, compared with just 16% last fiscal year.<\/p>\n<p>More importantly, profitability could grow even faster than sales.<\/p>\n<p>The bank estimates that photonics wafers retain about 80 cents from every euro of sales after raw material costs, compared with 56 cents for Soitec&#8217;s other products.<\/p>\n<p>As photonics becomes a larger part of the business, Bank of America expects the company&#8217;s gross profit margin to rise from 16% to 44% by fiscal 2029.<\/p>\n<p>&#8220;We believe FY26 gross margin of 16% marked the trough for Soitec,&#8221; Wong and his colleagues said.<\/p>\n<p>That expected recovery underpins their forecast of \u20ac10.62 in earnings per share for fiscal 2029, approximately 71% above the Visible Alpha analyst consensus.<\/p>\n<div class=\"c-widget-related\" data-stories-id data-event=\"widget_related\">\n<div class=\"c-widget-related__title\"><b class=\"c-widget-related__title__text\" lang=\"en\">Related<\/b><\/div>\n<ul class=\"c-widget-related__list\" id=\"abe-article-related-2\">\n<li class=\"c-widget-related__item\">IMF forecasts 3.1% global growth in 2026, with eurozone at 1.1%<\/li>\n<\/ul>\n<\/div>\n<h2>Why a nearly 600% rally still carries substantial risks<\/h2>\n<p>Soitec&#8217;s transformation is far from complete.<\/p>\n<p>Annual revenue declined 34% to \u20ac592 million in fiscal 2026, while mobile communications sales plunged 43%.<\/p>\n<p>The smartphone division contracted another 10% in the June quarter as customers continued reducing inventories.<\/p>\n<p>Bank of America expects the mobile business to reach its lowest point this fiscal year, but a recovery is not guaranteed.<\/p>\n<p>Meeting growing demand for photonics will also require substantial investment.<\/p>\n<p>The bank expects Soitec to announce an extension of its Singapore manufacturing plant in the coming months, potentially costing around \u20ac700 million.<\/p>\n<p>Valuation presents another challenge.<\/p>\n<p>At approximately \u20ac154 per share, Soitec trades at nearly 96 times Bank of America&#8217;s projected earnings for the financial year ending March 2027.<\/p>\n<p>Such an elevated valuation leaves investors vulnerable if AI infrastructure spending slows or competing technologies gain ground.<\/p>\n<p>Soitec will publish its first-half results on 18 November, offering a fresh test of its ambitious growth outlook.<\/p>\n<p>At the beginning of 2026, investors were focused on shrinking smartphone sales and deteriorating profits.<\/p>\n<p>Today, Soitec is increasingly being valued as a critical supplier to the global AI industry.<\/p>\n<p>The question is whether its photonics business can grow fast enough to justify a share price that may have already anticipated an extraordinary transformation.<\/p>\n<p><em>This article is for informational and educational purposes only and does not constitute financial advice, investment advice, or a recommendation to buy or sell any financial instrument. Readers should conduct their own research and consult a qualified financial adviser before making any investment decisions. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results.<\/em><\/p>\n<\/div>\n<p>                                  Go to accessibility shortcuts<\/p>\n<div class=\"c-article-share-comment u-align-items-center u-display-flex\"><span class=\"c-article-share-comment__links u-align-items-center u-display-flex u-justify-content-center js-c-article-share-comment-share\"><span class=\"c-article-share-comment__label\">Share<\/span><\/span><span class=\"c-article-share-comment__label\">Comments<\/span><span class=\"c-article-share-comment__label c-article-share-comment__label--always\">Add Euronews on Google<\/span><\/div>\n<div id=\"adb-article-you-might-also-like\" class=\"perf-cv-auto c-article-you-might-also-like\">\n<h2 class=\"c-article-you-might-also-like__title\">\n        Read more<br \/>\n      <\/h2>\n<div class=\"c-article-you-might-also-like__container\">\n<article id=\"abe-2933159-pos0-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 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id=\"abe-2933159-pos0-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 the-media-object--has-video\" data-nid=\"2933159\" data-cid=\"9949640\" data-part-label=\"Partner content\">\n<figure id=\"abe-2933159-label-pos0-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/96\/40\/480x270_cmsv2_f2c93853-fdc1-5cc6-9514-8bbffaaeedca-9949640.jpg\" loading=\"lazy\" alt=\"A roller coaster at Six Flags park in Georgia has been closed.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    USA<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    US theme park Six Flags shuts nine roller coasters after fatality<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2932709-pos1-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 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data-nid=\"2927965\" data-cid=\"9924458\" data-part-label=\"Partner content\">\n<figure id=\"abe-2927965-label-pos2-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/92\/44\/58\/480x270_cmsv2_b1d83b92-3fa2-54c9-a1bb-091cdc6a7609-9924458.jpg\" loading=\"lazy\" alt=\"\u00a9\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Made in Europe<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    Inside Soitec, the French tech company powering the global semiconductor industry<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2933115-pos2-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 the-media-object--no-label\" data-nid=\"2933115\" data-cid=\"9949476\" data-part-label=\"Partner content\">\n<figure id=\"abe-2933115-label-pos2-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/94\/76\/320x180_cmsv2_e82a9bd2-48a2-5495-94c8-b68f5e06fad5-9949476.jpg\" loading=\"lazy\" alt=\"The logo of the International Monetary Fund is visible on its building\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    IMF forecasts 3.1% global growth in 2026, with eurozone at 1.1%<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2932991-pos3-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 the-media-object--has-video the-media-object--no-label\" data-nid=\"2932991\" data-cid=\"9949418\" data-part-label=\"Partner content\">\n<figure id=\"abe-2932991-label-pos3-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/88\/64\/320x180_cmsv2_84994b24-42b5-5074-96d9-a38ff26a435f-9948864.jpg\" loading=\"lazy\" alt=\"Citro\u00ebn\u2019s new 2CV Concept, inspired by its iconic ancestor.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Citro\u00ebn&#8217;s iconic 2CV returns as an all-electric model<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2933201-pos4-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 the-media-object--no-label\" data-nid=\"2933201\" data-cid=\"9949836\" data-part-label=\"Partner content\">\n<figure id=\"abe-2933201-label-pos4-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/98\/36\/320x180_cmsv2_33f0573c-56ef-5e2e-a69e-8b0271341b5b-9949836.jpg\" loading=\"lazy\" alt=\"File - FILE - CEO of LVMH Bernard Arnault presents the group&apos;s 2019 results during a press conference, in Paris, Tuesday, 28 Jan. 2020. \" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    LVMH sales: China slowdown hits Louis Vuitton and Dior<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2932963-pos5-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 the-media-object--has-video the-media-object--no-label\" data-nid=\"2932963\" data-cid=\"9948699\" data-part-label=\"Partner content\">\n<figure id=\"abe-2932963-label-pos5-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/94\/86\/99\/320x180_cmsv2_739b7d75-cff5-5da8-bd7c-56583d493a55-9948699.jpg\" loading=\"lazy\" alt=\"Portraits of Robert Hall and Michael Woodford on a screen at the Royal Swedish Academy of Sciences in Stockholm, 12 October, 2026\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    US economists win economics Nobel Prize for stabilisation models<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2932916-pos6-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 the-media-object--no-label\" data-nid=\"2932916\" data-cid=\"9948399\" data-part-label=\"Partner content\">\n<figure id=\"abe-2932916-label-pos6-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/90\/47\/21\/320x180_cmsv2_9e76da46-563f-58b8-bd23-76e57c3d61f5-9904721.jpg\" loading=\"lazy\" alt=\"FILE. An advertisement for Bitcoin displayed on a building in Hong Kong, Nov. 2021\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    French MPs push exit tax on crypto holdings above \u20ac800,000<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2932839-pos1-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 the-media-object--has-video the-media-object--has-related the-media-object--no-label\" data-nid=\"2932839\" data-cid=\"9948081\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Oil prices drop as stocks rise after Trump touts &#8216;energy ceasefire&#8217;<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2932374-pos2-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2932374\" data-cid=\"9946226\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Teacher salaries in Europe: Which countries offer the best pay?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2931966-pos3-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2931966\" data-cid=\"9944052\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Rent inflation in Europe: Which countries are hit the hardest and why?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2932927-pos4-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2932927\" data-cid=\"9948564\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Chinese carmaker BYD considers opening a factory in France<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2932916-pos5-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2932916\" data-cid=\"9948399\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    French MPs push exit tax on crypto holdings above \u20ac800,000<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<div class=\"articleBody\" data-key=\"articleBody\">A little-known French semiconductor company has become one of Europe&#8217;s biggest artificial intelligence stock market winners in 2026, thanks to a technology few competitors can produce.Shares in Soitec SA have risen almost sevenfold this year, from about \u20ac23 at the start of January to roughly \u20ac154 on Monday afternoon in Paris.Yet the company reported a 34% decline in annual revenue last year.Now, Bank of America believes the stock could nearly double again.On Friday, the US bank upgraded Soitec from Neutral to Buy and raised its price target from \u20ac152 to \u20ac300, implying more than 90% upside.So what is driving this rally, and how much of it rests on a single product?The French company behind a critical AI technologySoitec does not make the processors that train artificial intelligence models. It makes the engineered silicon wafers on which other semiconductor companies build their chips.Based in Bernin, near Grenoble, the company was spun out of French research institute CEA-Leti in 1992.It employs more than 2,000 people and holds more than 4,700 patents.Earlier this month, Euronews journalist Val\u00e9rie Gauriat visited Soitec&#8217;s production facilities for the Made in Europe series.Inside its clean rooms, silicon wafers undergo dozens of manufacturing stages, allowing the company to manipulate incredibly thin layers of material.&#8221;Our job is to run faster than the competition,&#8221; Chief Technology Officer Christophe Maleville told Euronews.That expertise is becoming increasingly valuable as AI data centres need to transfer enormous amounts of information between processors.Silicon photonics offers a faster, more energy-efficient alternative to traditional copper connections by using light instead of electrical signals.Soitec supplies the specialised silicon wafers used to manufacture these optical chips, giving it a critical role in the expanding AI infrastructure market.Wall Street was not the first to make the case.On 11 March, a pseudonymous account on X called Serenity, which then had about 100,000 followers, said it had taken a large position in Soitec, arguing that the company had a near monopoly in wafers for AI optical links and that the shares could triple within two years.Soitec jumped 16% that day and nearly 30% over two sessions, despite no company announcement explaining the rally.Why Bank of America sees a near monopoly in AI photonics&#8221;We estimate that Soitec currently holds ~95% market share in supplying Photonics-SOI wafers,&#8221; Bank of America analyst Oliver Wong and his colleagues said.Rivals, including Taiwan&#8217;s GlobalWafers, are attempting to enter the market.However, the bank expects Soitec&#8217;s technological expertise and decades of manufacturing experience to protect its dominant position.That advantage could become increasingly valuable as AI data centres grow larger and require more optical connections between processors.Bank of America estimates that the total wafer area required for photonic chips will expand by approximately 60% annually between 2026 and 2030.In other words, demand for Soitec&#8217;s materials could grow considerably faster than the number of AI processors themselves.The company&#8217;s latest forecasts already suggest a major acceleration.In September, Soitec projected that photonics revenue would reach between 2.5 and three times the previous year&#8217;s level in the financial year ending March 2027.It also forecast approximately 50% growth in total revenue for the September quarter.Meanwhile, Soitec expects to secure multi-year capacity agreements with eight of its roughly ten largest photonics customers.These agreements could make future demand more predictable, supporting investment in additional production capacity.How AI could reshape Soitec profitabilityUntil recently, Soitec depended heavily on the smartphone industry, which accounted for roughly half of its revenue last fiscal year.But in the June quarter, its broader Edge &amp; Cloud AI division generated 57% of sales.Bank of America expects that transformation to accelerate.It projects photonics revenue will climb from \u20ac92 million in fiscal 2026 to approximately \u20ac680 million in fiscal 2029.That would represent almost half of projected group revenue of \u20ac1.43 billion, compared with just 16% last fiscal year.More importantly, profitability could grow even faster than sales.The bank estimates that photonics wafers retain about 80 cents from every euro of sales after raw material costs, compared with 56 cents for Soitec&#8217;s other products.As photonics becomes a larger part of the business, Bank of America expects the company&#8217;s gross profit margin to rise from 16% to 44% by fiscal 2029.&#8221;We believe FY26 gross margin of 16% marked the trough for Soitec,&#8221; Wong and his colleagues said.That expected recovery underpins their forecast of \u20ac10.62 in earnings per share for fiscal 2029, approximately 71% above the Visible Alpha analyst consensus.Why a nearly 600% rally still carries substantial risksSoitec&#8217;s transformation is far from complete.Annual revenue declined 34% to \u20ac592 million in fiscal 2026, while mobile communications sales plunged 43%.The smartphone division contracted another 10% in the June quarter as customers continued reducing inventories.Bank of America expects the mobile business to reach its lowest point this fiscal year, but a recovery is not guaranteed.Meeting growing demand for photonics will also require substantial investment.The bank expects Soitec to announce an extension of its Singapore manufacturing plant in the coming months, potentially costing around \u20ac700 million.Valuation presents another challenge.At approximately \u20ac154 per share, Soitec trades at nearly 96 times Bank of America&#8217;s projected earnings for the financial year ending March 2027.Such an elevated valuation leaves investors vulnerable if AI infrastructure spending slows or competing technologies gain ground.Soitec will publish its first-half results on 18 November, offering a fresh test of its ambitious growth outlook.At the beginning of 2026, investors were focused on shrinking smartphone sales and deteriorating profits.Today, Soitec is increasingly being valued as a critical supplier to the global AI industry.The question is whether its photonics business can grow fast enough to justify a share price that may have already anticipated an extraordinary transformation.This article is for informational and educational purposes only and does not constitute financial advice, investment advice, or a recommendation to buy or sell any financial instrument. Readers should conduct their own research and consult a qualified financial adviser before making any investment decisions. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results.<\/div>\n<p>[analyse_source url=&#8221;https:\/\/www.euronews.com\/2026\/10\/13\/this-french-ai-stock-is-up-570-in-2026-analysts-see-a-further-90-upside&#8221;]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/images.euronews.com\/articles\/stories\/09\/94\/91\/05\/1200x675_cmsv2_77bb5e44-116d-5a41-b789-4aec91725c2f-9949105.jpg&#8221;] Destinations From Sofia to Verona: Europe\u2019s 10 best city breaks for 2027 Europe News Germany, Italy and Belgium call for \u2018emergency brake\u2019 on EU laws No Comment Russia pounds Kharkiv and Lviv region with missiles and drones, killing three civilians Tech News Uzbekistan\u2019s young engineers build talking gloves and drone hunters Destinations [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[90],"tags":[226,36],"class_list":["post-2194332","post","type-post","status-publish","format-standard","hentry","category-international","tag-crawlmanager","tag-euronews-com"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/2194332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2194332"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/2194332\/revisions"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2194332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2194332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2194332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}