ams-Osram shares jump 22% on AI contract and cash flow forecast
Updated
Updated · MarketWatch · May 7
ams-Osram shares jump 22% on AI contract and cash flow forecast
10 articles · Updated · MarketWatch · May 7
The European chipmaker said a customer development agreement marks its AI-market entry and sees positive free cash flow excluding asset sales in 2027.
It still expects divestments to help deliver more than 300 million euros of free cash flow this year, while first-quarter revenue fell 3% to 796 million euros.
Adjusted EBITDA slipped 3% to 131 million euros, but margin edged up to 16.5%; second-quarter guidance and first-quarter results beat expectations, and the full-year outlook was reiterated.
Why do analysts predict a price drop despite ams-Osram's promising AI market entry and recent stock surge?
Can this European firm's microLEDs truly rival giants like Microsoft in the race for next-generation AI data center hardware?