Apple Supplier AMS Reports a Positive Outlook for Q3 Driving Europen Chip Stocks Up
In its second-quarter earnings report, Austrian chipmaker AMS predicts a high customer demand for the upcoming quarter, causing its stocks to surge by 9%.
In fact, all European chip stocks traded higher on Tuesday after AMS announced its strong sales report for the second quarter and an even brighter outlook for the third quarter.
The Austrian company which produces 3D sensors for Apple’s FaceID technology and Android devices reported $415 million in revenue during the second quarter—an 8% increase compared to the first quarter.
Furthermore, the company announced it expects even better results in the third quarter, predicting profits between $600 and $640 million. It attributes the expected growth to the “high volume ramps for smartphone sensing solutions while its other end markets continue their contribution to AMS’ overall results. ”
“The results reflect the strength of AMS’ portfolio and more supportive demand trends in the consumer market,” the earning report reads.
This financial statement sent the European chip stock market up, with AMS stocks trading 9% higher today compared to yesterday. Other European chip manufacturers like STMicro, Infineon Technologies, BE Semiconductor, and ASML traded between 2% and 3% higher on the back of the report. Currently, AMS stocks can be purchased for CHF 47.34 apiece.
The prices of chip stocks have been unstable in recent months due to the ongoing trade disputes between the U.S. and China.
On Monday, the Wall Street Journal reported that Apple is in advanced talks to buy Intel’s smartphone-modem chip business. The deal is valued at $1 billion or more in the portfolio of patents, and staff. It would mark the beginning of the iPhone maker’s control over the development of critical components for its 5G devices.