This semiconductor supply chain stock has doubled. Wall Street still loves it
Shares of Qnity Electronics have doubled this year, but Wall Street analysts are still finding lots of reasons to stay optimistic on the stock. Qnity Electronics, spun off from chemical giant DuPont de Nemours last November, is a low-profile but major player in the semiconductor supply chain. The company provides materials and products to major semiconductor manufacturers. Shares of Qnity Electronics jumped 10% Tuesday after first-quarter profit and revenue both beat analysts’ estimates. In its last quarter, Qnity earned an adjusted $1.08 per share on $1.32 billion in revenue, while analysts polled by FactSet were expecting earnings of 92 cents per share and revenue of $1.27 billion. The company also hiked its full-year earnings and revenue guidance versus prior forecasts. Week to date, the stock is up nearly 13%. Shares started off the year at $81.65 each, and have since nearly doubled to close at $168.36 on Tuesday. Yet analysts on Wall Street stayed bullish following its latest financials. “We expect the stock to hold its gains following a strong quarter and increased guidance for 2026,” wrote Goldman Sachs analyst James Schneider. Oppenheimer analyst Edward Yang applauded Qnity as the “hidden engine of AI as materials momentum accelerates.” “We continue to believe that materials now set the limits in AI chip packaging, and Q is the optimal way to express this theme as the industry’s only full-stack materials platform,” Yang wrote, using Qnity’s ticker symbol. Overall, analysts reiterated their bullish opinions and hiked their price targets on Qnity. Here’s what analysts at some of the biggest investment banks on Wall Street had to say after Qnity’s report. Goldman Sachs: buy rating, price target $165 Schneider’s new target, up from $130, is 2% below where shares of Qnity closed on Tuesday. “We believe investor positioning was constructive, supported by optimism around a broad‑based wafer start recovery in 2026, a favorable spending backdrop across leading-edge logic and [high bandwidth memory], and positive commentary from analog companies this earnings season … We reiterate our Buy rating, as Qnity is well positioned to benefit from secular tailwinds in AI/HPC and advanced packaging — and a cyclical recovery in wafer starts should support sustained volume and revenue upside.” Mizuho: outperform, $170 Mizuho’s new target, raised from $150, implies upside of less than 1%. “Electronic materials is the highest growth sector in chemicals, with an upside case for sales to accelerate towards ~10% growth. Chip-Level Packaging and High-Performance Computing (e.g. advanced nodes) are experiencing above average growth, and Qnity believes it can grow 200 bps above industry growth. These are fragmented, large addressable markets with lots of room for share gains by the broadest players.” Wolfe Research: outperform, $175 Wolfe Research’s price target, hiked from $153, equates to upside of about 4%. “Q is further establishing itself as a preferred avenue to gain exposure to a breadth of bullish tech themes, incl. leading edge node transitions, hyperscaler expansions, adv. packaging and mainstream semi recovery — all while leaving an appropriate degree of 2H upside to #s.” Oppenheimer: outperform, $175 The firm lifted its price target from $150. “Q drove high quality 1Q26 beat across revenue/EBITDA/EPS (3%/7%/21% above estimates) led by AI-heavy Interconnect Solutions (+25% yoy) on accelerating advanced packaging/thermal demand plus new AI [printed circuit board] wins for data centers. It raised 2026 guidance across revenue, EBITDA, EPS, and FCF, but remained characteristically conservative, with revenue midpoint raised +4.5% vs. prior, and prudently assuming +$20M raws headwind. Importantly, Q firmly rebutted any notion of net negative memory/devices trade-offs.” Deutsche Bank: buy, $180 Deutsche Bank’s target, up from $170, implies 7% future upside. “Qnity delivered a refreshingly solid quarter, raising its full-year growth outlook to +11% (from +7% y/y prior) with ample room to go higher, in our view. Qnity is emerging as one of the key beneficiaries of the broader industry shift from “shrink to stack”, with the verticality of chip and packaging designs becoming ever more important in the AI era … All told, we found this to be a strong second print for Qnity as a standalone company, with fundamentals seeming to strengthen, execution remaining solid, and an achievable bar set for 2026 (DB ests now stand slightly above the company’s updated guidance).” BMO Capital Markets: outperform, $180 The bank lifted its price target. “Following our conversations with management, we came away incrementally confident that ongoing earnings momentum in 2Q and 3Q will likely push F26 towards the high-end of the raised guide. While it’s early to say how 2027 unfolds, our forecasts conservatively build in roughly half the growth rate expected for 2026, minimal outperformance vs end-markets, and no credit from the ongoing transformation plan. As such, with robust semis/electronics trends, resilience against broader consumer electronics softness and balance sheet flexibility, we expect Q to continue outperforming our broader coverage. Reiterate Top Pick.” RBC Capital Markets: outperform, $200 Analyst Arun Viswanathan’s forecast, up from $150, is 19% above Qnity’s Tuesday closing price. “Qnity continues to see strong volumes, especially in Interconnect (ICS) which grew > 20% in Q1 on advanced packaging, AI-PCBs, and Thermal Management which were all > 30%. We expect Q to consistently see solid [mid single digit-high single digit]+ sales growth and modestly improving annual margins through 2026 and beyond due to: 1) increasing exposure to advanced nodes (35% in 2025 growing to 40-45% in 26-27), 2) higher semi-fab utilization rates, 3) continued robust organic investment and capacity additions at customers.”
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