On Thursday, July 23, 2026, European semiconductor stocks experienced significant shifts after earnings updates highlighted contrasting performance and market expectations.

Soitec, a French semiconductor materials supplier, saw its shares jump approximately 23% after surpassing sales expectations and signaling accelerating demand for photonics wafers used in artificial intelligence (AI) applications. The company forecasted revenue growth exceeding 30% in the second quarter and anticipated its Photonics-SOI business revenue to more than double from just over $100 million the previous year.

Conversely, STMicroelectronics shares fell 15% following a quarterly profit report below expectations, with investors focusing on the recovery pace in its automotive and industrial sectors. Similarly, Dutch semiconductor equipment maker BE Semiconductor Industries (Besi) saw shares decline around 3%, despite strong order bookings, due to slightly lower-than-expected second-quarter revenue.

Andrew Gardiner, head of European technology equity research at Citi, noted that consensus forecasts already factor in strong growth for 2026 and 2027, which raises the bar for additional gains. Rushabh Amin, multi-asset portfolio manager at Allspring Global Investments, commented, "You're seeing more questions being asked about where's the future revenue going to come from."

The Finnish network equipment maker reported sustained strong demand but acknowledged ongoing supply constraints in parts of the semiconductor market. CEO Justin Hotard stated, "Demand remains strong, while supply continues to be the main industry constraint, prompting our customers to place longer-term orders."

Additionally, Alphabet, Google's parent company, reported record cloud growth earlier in the week but faced investor scrutiny over a $15 billion increase in planned capital spending for 2026.

Sources