JPMorgan Upgrades ams-Osram on AI Data Center Potential

TrustFinance Global Insights

May 08, 2026

2 min read

JPMorgan Upgrades ams-Osram on AI Data Center Potential

JPMorgan Cites AI Opportunity in ams-Osram Upgrade

JPMorgan has upgraded its rating for ams-Osram shares to Neutral from Underweight. The firm also significantly increased its price target for the company to CHF 11.80 from a previous CHF 5.45, reflecting new growth prospects.

Overview of the Situation

The rating change follows ams-Osram's first-quarter results, which indicated its Micro LED opportunity within AI data centers could materialize sooner and on a larger scale than initially expected. The company now forecasts this opportunity arriving "definitely before 2030," an acceleration from the earlier "2030+" timeline. Furthermore, ams-Osram has secured a development partnership with an unnamed major industry player.

Impact on Market and Forecasts

In response, JPMorgan raised its financial forecasts for ams-Osram. Revenue projections were increased by 3 percent for 2026 to €3,185 million and by 4 percent for 2027 to €3,249 million. The firm’s valuation model now focuses on 2028 EBIT estimates, signaling that the AI data center narrative will likely drive the share price moving forward.

Summary and Outlook

The primary driver for the improved outlook is the accelerating AI data center opportunity. While core automotive and industrial segments are strengthening, JPMorgan expressed caution regarding the consumer portfolio, particularly its smartphone exposure. The market will closely watch for progress on Micro LED technology partnerships.

FAQ

Q: Why did JPMorgan upgrade ams-Osram stock?
A: The upgrade was driven by the company's accelerated and expanding Micro LED opportunity in the artificial intelligence data center market.

Q: What is the new price target for ams-Osram shares?
A: JPMorgan raised the price target to CHF 11.80 from the previous CHF 5.45.

Source: Investing.com