Valens Semiconductor shares surge on strong quarterly results

Valens Semiconductor’s shares jumped 15% in premarket trading on Thursday after the company reported quarterly results that exceeded analyst expectations.

The Israel-based provider of high-speed connectivity solutions said revenue rose 22% year-over-year to $45.3 million in the first quarter, while net income increased to $6.8 million from $4.1 million a year earlier. Adjusted earnings per share came in at 28 cents, surpassing the 22-cent consensus estimate compiled by Refinitiv.

Gross margin expanded to 58.7%, up from 53.4% in the same period last year, driven by improved product mix and cost efficiencies. The company also raised its full-year revenue guidance, forecasting sales of $190 million to $200 million, up from its prior range of $175 million to $185 million.

Analysts at Jefferies and Oppenheimer maintained buy ratings on the stock, citing strong demand for Valens’ automotive and data center connectivity solutions. The company’s chipsets are used in electric vehicles, smartphones, and cloud infrastructure, sectors benefiting from ongoing digital transformation trends.

Valens Semiconductor’s stock has gained nearly 40% over the past three months, outperforming the Philadelphia Semiconductor Index, which has risen about 12% in the same period.