BofA upgrades Soitec to 'buy' on optical-chip growth, shares rise
BUZZ-BofA upgrades Soitec to 'buy' on optical-chip growth, shares rise ** BofA upgrades Soitec SOIT.PA to "buy" and sets price target (PT) of €300, sending shares in the French chip-wafer maker up 6.7%
** BofA says demand for optical ports in data centres is growing faster than that for processors known as XPUs, as bandwidth needs rise
** It says demand for silicon photonics, chips that use light to carry data, is growing faster still
** BofA says Soitec holds more than 90% of the market for the key substrate material, the base wafer that photonic chips are built on
** BofA expects Soitec to announce an expansion of its Singapore fab capacity in the coming months, which it says would lead to further upward revisions to forecasts for later years
(Reporting by Nathan Vifflin in Gdansk)
((nathan.vifflin@thomsonreuters.com; gdansk.newsroom@thomsonreuters.com; +48 58 769 67 13;))
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BofA upgrades Soitec to 'buy' on optical-chip growth, shares rise