IQE plc (AIM: IQE) shares rose 15% to 41.70p after the Cardiff-based compound semiconductor specialist raised its full-year revenue guidance.
The company said first-half trading exceeded management expectations, supported by strong demand across its core markets.
IQE now expects first-half revenue of at least £64 million.
The group said demand for its Indium Phosphide products continues to accelerate because of their role in optical photonics for data centres and artificial intelligence infrastructure.
Revenue growth was also supported by strength in aerospace and defence, alongside robust demand for 3D sensing and wireless products.
IQE said the momentum is expected to continue through the rest of 2026.
As a result, the company now expects full-year revenue growth of more than 30% year-on-year, with adjusted EBITDA in the low-teens millions of pounds.
The group remains bank-debt free and reported a cash position of £41.6 million at 30 June 2026.
Chief executive Jutta Meier said IQE’s established leadership in Indium Phosphide and other key material systems had embedded the company in supply chains linked to major industry growth trends.
She said she remained excited about the opportunities ahead for the transformed IQE and looked forward to reporting further progress.
