Soitec Shares Hit Their Lowest Since 2017 at the Close of November 21
Shares of the French semiconductor materials manufacturer Soitec closed on Friday, November 21, at 23.30 euros, down 3.4% from the previous day. This new decline, recorded in substantial volumes representing 2.21% of the traded capital, brings the weekly drop in value to nearly 39% and reflects a prolonged reaction to the disappointing semi-annual results published on November 19. Soitec now shows an annual performance of -63.3%, far behind the CAC 40, which has gained 10.9% over the same period.
Financial Results and Market Reaction
The Isère-based group recorded a net loss of 67 million euros in the first half of its fiscal year 2026, compared to a profit of 14 million euros a year earlier. At the heart of these figures, a 41 million euro impairment on SmartSiC assets reflects a repositioning of market expectations on silicon carbide substrates. Revenue contracted by 32% to 231 million euros over the period, illustrating the persistent weakness of the mobile communications and automotive markets. The stock is now trading 40% below its 50-day moving average established at 38.80 euros and 48.6% below the 200-day average at 45.32 euros. This technical setup indicates a significant deterioration in the underlying trend. The stock is also trading well below its resistance threshold at 44.33 euros, while the immediate support at 24.12 euros was breached during the session, with the stock hitting an intraday low of 22.62 euros. However, the oversold indicator is clearly pronounced, with an RSI at 14, a level indicating extreme selling pressure that could technically favor a short-term technical rebound. The configuration of the Bollinger Bands, with a lower bound at 30.16 euros and the current price below this threshold, confirms this situation of bearish excess.
Technical Indicators and Market Context
The MACD is negative and below its signal line, a configuration that worsens the outlook for the stock. Momentum indicators unanimously describe a stock under strong pressure: the MACD line is at -2.63 against a signal line at -1.66, with a negative histogram of -0.98. This bearish momentum is evident in a market environment where the CAC 40 ended the session almost stable at 7,982.65 points with a very slight increase of 0.02%, highlighting the specific movement of the Soitec case. The stock displays a monthly volatility of 37.78, among the highest on the Paris exchange, reflecting extreme investor nervousness about the group's deteriorating prospects. The performance of the second quarter reflects strong dynamics in Edge & Cloud AI, continued adjustment of inventories in Mobile Communications, and a stagnant Automotive market. The presence of three net short positions representing about 0.57% of the capital also illustrates the speculative operators' mistrust regarding the upcoming evolution of the case.
Management Outlook and Market Sentiment
The group's management, through its CEO Pierre Barnabé, announced an anticipated sequential revenue increase of between 5 and 9% for the third quarter compared to the second quarter, while acknowledging the persistence of a challenging environment. The stock, which has been in the red for six sessions, is trading at its lowest since January 2017. Analysts remain divided, with some like Oddo BHF lowering their price targets while maintaining a positive long-term view, while others like UBS maintain a buy recommendation. Nevertheless, the market is severely punishing the limited visibility and prolonged phase of destocking among the group's clients, in a semiconductor sector undergoing a normalization period after previous supply tensions. The market capitalization continues to erode, placing Soitec in a historically low valuation zone that could eventually attract value investors, subject to a stabilization of operational fundamentals.
