ams OSRAM Shares Surge on AI Data Centre Photonics Deal, Strong Q1 Results
ams OSRAM's Financial Performance and Strategic Developments
By Nathan Vifflin
Stock Performance and Market Reaction
May 7 (Reuters) - Shares in Austrian sensor and semiconductor supplier ams OSRAM surged up to 41% on Thursday, after strong quarterly results and a data centre-related contract boosted hopes for a faster shift into higher-growth optical markets.
The stock, having pared some of the gains, was still 16% higher by 1136 GMT, extending a rally that has followed the company's deleveraging efforts and sales of non-core businesses.
Q1 Financial Results
Revenue and Profit Margins
After the market closed on Wednesday, ams OSRAM reported first-quarter revenue of 796 million euros ($937 million), which beat a company-provided consensus of 779 million euros. Its adjusted core profit (EBITDA) margin was 16.5%, well ahead of market expectations of 15.0%.
AI Data Centre Photonics Deal
Development Agreement Details
The company also said it had signed a development agreement with a "leading AI data-centre infrastructure partner" to commercialize its photonics technologies, with product development already underway.
Optical Interconnects and Market Potential
The deal covers optical interconnects for AI data centres, initially targeting short-distance connections between server racks and potentially, over time, links inside racks and chip-to-chip communication, CEO Aldo Kamper told analysts.
"The industry is hyper quick and really waiting for solutions here," Kamper said on a post-results call. "We are definitely (getting there) before 2030, whether it's as early as 2027, I can't tell you yet, but we definitely see this as an opportunity in the next few years."
Industry Impact and Analyst Commentary
The deal could push the Austrian company into one of the hottest areas in semiconductors, as AI data centres look for ways to move more data between chips and servers while cutting power consumption.
The agreement could mark ams OSRAM's entry into the AI data-centre optical interconnects market, Jefferies said in a note to investors, adding the company's new optical engagements were "likely to lead to a further re-rating of the stock".
($1 = 0.8495 euros)
(Reporting by Nathan Vifflin in Gdansk, editing by Milla Nissi-Prussak)