Soitec shares surged over 10% in Paris after reporting a free cash flow of $73.2 million for the fiscal year, reversing a prior deficit. This marks a critical turnaround for the French semiconductor-materials firm, which has seen its stock rise more than sevenfold in 2024 as investors bet on AI-linked demand. Laurent Remont, CEO since April, framed the positive cash flow as a foundation for sustainable growth. The rally reflects broader enthusiasm for European tech firms tied to the semiconductor sector, which underpins AI infrastructure.

The $73.2 million figure contrasts sharply with a 2023 loss of $23 million, signaling improved operational efficiency. Soitec’s gains align with a wider trend: Dutch peer ASML Holding, German chipmaker Infineon, and STMicroelectronics—supplying Apple and Tesla—have all benefited from AI-driven semiconductor demand. Investors are prioritizing companies positioned to capitalize on data center expansion and AI chip development, areas where Soitec plays a niche role in materials supply.

Soitec’s stock performance underscores how AI’s growth trajectory is reshaping investor priorities. While the company has not disclosed specific AI-related contracts, its recovery coincides with a semiconductor industry renaissance. Remont emphasized that restoring cash flow is a prerequisite for scaling operations, a message that has reassured shareholders. The Paris-listed shares now trade near record highs, reflecting both short-term optimism and long-term confidence in the firm’s strategic pivot toward profitability.