Shares in sensor producer AMS AG jumped 22% after the Apple supplier gave an upbeat forecast for the current quarter and the remainder of the year, soothing investors who fear a slump in smartphone demand due to the coronavirus crisis.
AMS is best-known as the main sensor supplier of Apple’s TrueDepth Camera system found in high-end iPhones and iPads that’s used for Face ID facial recognition technology and Animoji/Memoji, among other uses.
AMS, which is in the process of taking over the leading car headlight producer Osram to diversify into the auto business, said demand from smartphone makers continued to be strong despite the pandemic.
It forecast a profit (EBIT) margin of 17-20% on revenue of $440-480 million for the second quarter after reaching $501 million in revenue and a margin of 20% in the January-March period.
The gains in the Swiss-listed company’s shares erased part of their 60% drop this year amid investor worries about demand from its main customer Apple, weak auto trends at Osram and high levels of debt.
MacDailyNews Take: Coincidentally, one year ago, nearly to the day, “Shares of chipmaker AMS AG jumped more than 20% Tuesday morning after the Austrian group posted an upbeat outlook for the second quarter,” CNBC reported.