Lake Street initiated coverage of Photronics with a Buy rating and $46 price target. Photronics, which is pivoting toward the high-end integrated circuit market to capture the increasing number of new semiconductor designs, has "become a primary beneficiary of AI at the edge," the analyst tells investors. With greater than 30% share of the global merchant photomask market, the company is "uniquely positioned to absorb demand" as AI capabilities proliferate into smartphones, automotive sensors, and IoT devices and the volume of new chip designs requiring complex photomasks expands, the analyst added.
