Compound-semiconductor maker IQE has raised its revenue forecast for 2026, citing accelerating demand for the specialist chips used in artificial-intelligence and data-centre networks.
Key points
- Full-year 2026 revenue growth guidance raised to more than 30%, from around 20%
- First-half revenue of at least £64m
- Adjusted EBITDA expected in the low tens of millions of pounds
- Debt-free, with cash of £41.6m
- Growth led by indium phosphide (InP) demand for AI and data-centre optics
What happened
IQE (AIM: IQE), the Cardiff-based maker of advanced semiconductor wafers, said in a trading update that it now expects full-year revenue to grow by more than 30% in 2026 — a notable upgrade from previous guidance of around 20%. The improved outlook follows a stronger-than-expected first half, in which revenue reached at least £64m.
What is driving demand
The upgrade is being powered by demand for indium phosphide (InP), a material IQE supplies for the optical components that move data at high speed inside data centres and AI systems. The company said demand had also held firm across aerospace and defence, 3D sensing and wireless communications.
The numbers
IQE expects adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the low tens of millions of pounds for the year. It described its balance sheet as debt-free, with cash of £41.6m, giving it room to invest as orders build.
Why it matters
IQE is one of the larger technology names on London’s junior market, and its products sit deep in the supply chain for the AI infrastructure being built out worldwide. A guidance upgrade from a UK chip supplier is a useful read-through on how strongly that spending is feeding down to component makers.
What happens next
Investors will look to IQE’s full interim results for confirmation that InP demand is sustaining into the second half, and for detail on margins and cash as revenue scales.
The trading update was published via regulatory news (RNS), with further detail on IQE’s investor site and via London Stock Exchange RNS.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Brian Kostiuk on Unsplash.
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