Shares of European chipmaker X-FAB surged as much as 76% on Wednesday, reaching a record valuation of approximately 2.06 billion euros ($2.40 billion) before settling at a 38% increase by 1322 GMT. The sharp rise, which brings the company's total gains for the year to 141%, was largely attributed to a social media post highlighting X-FAB as an 'interesting long idea' in the photonics and power semiconductors sector.
The surge in X-FAB's stock price was not linked to any specific corporate news, according to traders. The post that spurred the increase originated from the X handle Serenity, which has previously been associated with notable stock movements. X-FAB's CEO, Damien Macq, confirmed that the company was unaware of any undisclosed developments that could justify the stock's performance. Retail investors appeared to dominate trading activity, with X-FAB ranking as one of the most traded stocks on Germany's Tradegate platform.
The same social media account, also known as @aleabitoreddit, was previously linked to significant gains in UK-based Raspberry Pi earlier this year. Since then, the account's followers have increased dramatically from around 58,000 to over 411,000. The semiconductor sector has been experiencing a rally, driven by expectations of increased demand due to advancements in artificial intelligence.
“We have observed the recent increase in our share price and trading volumes. The company is not aware of any undisclosed material developments that would warrant disclosure at this time.”
Damien Macq, CEO of X-FAB
X-FAB remains committed to its focus on automotive, industrial, and medical markets, including photonics and data centre applications. Meanwhile, SK Hynix recently surpassed a $1 trillion market valuation, joining other memory chip giants like Samsung Electronics and Micron.
Background
The recent surge in X-FAB's stock price underscores the growing influence of social media on financial markets. Investors and analysts will be closely monitoring the company's performance and any further developments in the semiconductor industry.
The recent surge in X-FAB's stock price underscores the growing influence of social media on financial markets. Investors and analysts will be closely monitoring the company's performance and any further developments in the semiconductor industry.
