Photronics Inc. (PLAB), a global leader in photomasks for semiconductor production, reports strong growth leading into its earnings report on February 25, with shares rising 50% over the past three months, significantly outpacing the S&P 500’s 3% increase. The company’s revenue from high-end chips reached record levels, particularly in the U.S., benefitting from the growing complexity of AI chip demands.
Photronics’ capital expenditures surged to $188.1 million from $131 million in the previous fiscal year, as the company expands its operations in the U.S. and South Korea to capitalize on the burgeoning chip industry. Currently, PLAB’s forward earnings multiple stands at 15.1X, above its five-year median of 11.1X, yet still at a 33% discount compared to the S&P 500’s 22.6X multiple.
