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IQE’s Share price is up by 22 per cent this month, continuing an aggressive bullish trend that started last month when the company’s value went up by 23 per cent. Today, the bullish trend is looking poised to continue, with the early hours of the session showing strong bullish intraday trading data and the company opening with a gap-up of almost a percentage point.
Despite being a leader in the semiconductor industry, IQE’s share price traded within a narrow price range of between 28p and 45p from January to late last month. However, in the past two months, we have started to see the company trading aggressively bullish, which has resulted in its prices rising by over 50 per cent in the past two months.
Currently trading at a 52p price level, the recent price surge has coincided with the company’s continued expansion, which may partly be the reason behind the company’s recent resurgence. Early this month, reports the company announced it would be expanding to Greensboro as part of a consolidation of its facility in Bethlehem, Pennsylvania. The company also signed a multi-year agreement with Advanced Wireless Semiconductor Company (“AWSC”), for the supply of epiwafers for wireless applications during that same period, a factor that might be contributing to today’s aggressive push to the upside.
As seen from the above fundamental analysis, IQE expansion and recent partnerships have played a part in the recent 54 per cent price surge of the company. The long-term outlook of the company has also continued to become bullish following multi-year agreements with other companies such as K siltron for GaN-on-SiC wafer development, Imec for GaN-on-SiC technology, Lumentum for photonics technology and MCLEDI for microLED co-development.
Therefore, I expect the company’s share price to continue following recent long-term agreements and the company to become attractive to long-term investors. There is a high likelihood that we might see the company trading above the 60p price level in the next few trading sessions. However, a drop below the 45p price level will invalidate my bullish analysis.
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