This Semiconductor Supply Stock Just Had Its Best Day Since 2008. Here’s Why.

Photronics makes photomask technologies, a component in semiconductors. (STR/AFP via Getty Images)

Key Points

• Photronics soars after reporting better-than-expected quarterly earnings.
• Adjusted earnings of 60 cents a share exceed analysts’ forecasts.
• Increased demand for larger-format photomasks and edge AI applications in Asia contribute to the positive results.

Shares of Photronics soared Wednesday after the maker of photomask technologies, a component in semiconductors, reported better-than-expected quarterly earnings.

The stock closed up 45% to $37.35, its highest close since 2001 and its largest single-day percent gain since 2008, according to Dow Jones Market Data.

Photronics posted adjusted earnings of 60 cents a share for its fiscal fourth quarter, ahead of analysts’ consensus forecast of 45 cents, according to FactSet. Revenue declined 3.1% from last year to $215.8 million but was higher than Wall Street’s call of $205.2 million.

Artificial intelligence is one part of the equation. Photronics saw increased demand last quarter for its larger-format photomasks, which support the process of making chips usable for AI. Demand tied to “edge AI applications” in Asia also is on the rise, CEO George Macricostas said on a conference call Wednesday.

The company expects revenue between $217 million and $225 million in its fiscal first quarter, up from $212 million last year. Analysts had forecast revenue to decline ahead of the latest earnings report.

Write to Nate Wolf at nate.wolf@barrons.com