| April 25
April 25 AMS shares jumped as much as 20
percent a day after the Austrian chip maker reported
first-quarter revenue above its own expectations, and said it
might increase its mid-term revenue growth target on strong
AMS supplies smartphone makers like Apple and
Samsung with optical sensors that help adjust the
brightness and colours on screens.
Excitement around the iPhone 8 has boosted some Apple
suppliers' stocks so far this year. AMS has been one of the
biggest beneficiaries with its shares more than doubling.
ZKB analyst Andreas Müller said AMS was also poised to
benefit in the current quarter from the launch of the Samsung
AMS said on Monday it expected revenues of 174 million to
181 million euros ($197.13 million) for the second quarter, a
big jump from 149.3 mln euros it reported in the first quarter.
"AMS reported an impressive start to the year ... the
outlook demonstrates that demand is strong for its portfolio of
sensing solutions, even more so than that previously forecast,"
Barclays analyst Andrew Gardiner wrote in a note to clients.
The company has also increased its capital expenditure
forecast to ramp up capacities at its facilities, citing
significantly increased customer forecasts and a higher revenue
pipeline for 2017.
Müller said he believed these capacity expansions were not
just linked to the iPhones, but also to some new Chinese
AMS is now "more confident" that all projects are ramping,
the company said in a conference call, but it declined to
comment on customer specific project pipelines.
Apple's suppliers are also in the spotlight after
Imagination Technologies revealed earlier this month
that Apple plans to replace its graphics chips with parts it is
developing in-house. Shares in another supplier Dialog
Semiconductor were hit when an analyst report
suggested it could lose a big Apple supply deal.
AMS shares were last up 15 percent at 61.90 Swiss francs and
topped the pan-European Stoxx 600 index.
($1 = 0.9182 euros)
(Writing by Thyagaraju Adinarayan. Editing by Jane Merriman)