Layer 4 · IQE — IQE plc
Live: 46.00 GBX · Earnings (last): 2024 — rev +2.4%; losses widened to -£38M · Next earnings: May 20 FY25 results · Conviction: 3/10
Bottleneck context
IQE is the UK-listed compound-semiconductor epitaxial-wafer specialist (GaAs, InP, GaN). Theoretically a picks-and-shovels Layer 4 name into VCSELs (datacom optics), RF (handset PAs) and emerging power-GaN. The pitch is that AI optical interconnect demand for InP epi-wafers eventually shows up here.
Why Tier C
Loss-making, small-cap (sub-£200M market cap), low-liquidity, and the May 20 FY25 print is pending. Recent quarters showed losses widening to -£38M against modest top-line growth. RF/handset cyclicality dominates the P&L today; AI optical contribution is too small to move the numbers.
Watch trigger
A clean FY25 print showing InP/datacom revenue inflection — or a strategic disposal of the RF business — would warrant fresh look. Watch the May 20 release closely.
Position guidance
No position into print; speculative low-conviction post-print only on confirmation of optical mix shift.