Soitec's Stock Plummets 30% at Close Following Disappointing Forecasts
On Thursday, November 20, 2025, shares of French semiconductor material specialist Soitec experienced a dramatic fall, dropping 30.09% to close at 24.12 euros. This tumble came after the company released its half-year results on Wednesday evening, which showed a significant decline, and provided quarterly forecasts that fell well below analysts' expectations. The stock has now reached its lowest level since December 2016, marking a year-over-year loss of 62.89%, while the CAC 40 has gained 10.39% in the same period.
Detailed Performance Analysis
The stock fell 30.09% during the session, moving from 34.50 euros at the opening to 24.12 euros at the close, in exceptionally high volumes representing 6.34% of the traded capital. The company recorded a revenue of 139 million euros in the fiscal second quarter of 2026, down 36% year-over-year, while total revenues for the semester fell organically by 29% to 231 million euros, affected by weaknesses in the Communications and Automotive divisions. Over seven days, the stock has plummeted 39.06%, and over three months, it has declined by 35.95%. This stock market debacle positions Soitec as the worst performer in the SBF 120 in a Parisian market that was slightly up by 0.34%. For the third quarter, Soitec expects sequential growth between 5% and 9% compared to the second quarter, which implies expected revenues around 146 to 152 million euros, well below the consensus of 168 million euros. Morgan Stanley highlighted that these forecasts were 'well below' both its estimates and market expectations, which were respectively anticipating increases of 32% and 24%. The company notes that market conditions remain challenging, with ongoing significant inventory reductions by clients in Mobile Communications and Automotive and Industry.
Technical Breakdown
Technically, the collapse has placed the stock in a strong oversold zone, with an RSI at 23, well below the traditional oversold threshold of 30. The MACD indicator shows a marked bearish configuration with a line at -1.56 and a negative histogram at -0.34, confirming intense selling pressure. The stock is now significantly below its 50-day moving average, which sits at 38.95 euros, 38% above the current price, illustrating the magnitude of the technical break. The gap with the 200-day moving average, established at 45.49 euros, indicates a structural bearish trend that has intensified in recent weeks. The Chaikin Money Flow (CMF) is at -0.12, indicating a clear capital outflow, while the On-Balance Volume (OBV) stands at -515,548, reflecting massive distribution on the stock. The stock has returned to levels not seen since late 2016 and has fallen 70% for the current year, 86% since the double peak at 180 euros in August 2023, and 89.6% from the historical high of 243 euros on December 1, 2021. The one-month volatility is at 16.08, reflecting the current instability of the stock. Three net short positions representing approximately 0.57% of the capital indicate a bearish pressure, albeit moderate.
Financial Performance and Outlook
In the first semester ending in September, Soitec incurred a net loss of 67 million euros, compared to a profit of 14 million euros a year earlier, while EBITDA fell 30% year-over-year to 79 million euros. Berenberg notes that production will be significantly reduced in the second semester, leading to a substantially lower plant utilization rate, which will have a significant impact on the gross margin given the high proportion of fixed costs in Soitec's operational model. The company is experiencing weak demand from the automotive sector, a major consumer of chips, as well as from the weak smartphone market. Soitec has stopped providing annual forecasts since May and now only sets quarterly targets. Morgan Stanley has maintained a neutral recommendation on the stock following these announcements, marking another challenging turn for the Grenoble-based manufacturer of innovative substrates.
