FRANKFURT (dpa-AFX) - Siltronic shares continued their rally on Friday. Market participants attributed the 7.5 percent jump to tailwinds from Japan, where shares of competitor Sumco soared by 19 percent. The surge was fueled by high expectations for wafer demand.

Amidst the global rally in chip stocks driven by Artificial Intelligence (AI) speculation and the resulting demand for wafers, Siltronic's share price broke above the 100-euro mark on Friday for the first time since February 2022. The stock has now doubled since early April, when it was trading at 50 euros. A brief dip on Wednesday, caused by a share placement from shareholder Wacker Chemie, was quickly recovered.

Analysts are now focusing on the situation in the wafer sector. Regarding Sumco, market observers pointed to a price target hike by Nomura analysts, who identified the AI boom as a primary driver in their study. Analysts Daiki Ban and Shigeki Okazaki suggested that this trend could lead to silicon wafer shortages.

Citigroup expert Daniel Schafei cited similar reasons regarding wafer manufacturer Siltronic, raising his price target to 105 euros, slightly above the already significantly elevated price level. The expert also pointed to strengthened demand as the catalyst for higher revenue estimates. He believes that this momentum should fully materialize in 2027 and 2028.

The broader rally in the US technology sector is entering its next phase with a surge in computer manufacturer Dell's stock. Its share price jumped approximately 40 percent in after-hours trading. This reinforces the assumption that the enthusiasm for this megatrend is not subsiding but is instead reaching an increasingly broad range of companies./tih/ag/jha/