SvmuuA little-known European chipmaker's stock surged over 70% on Wednesday after being heavily promoted by a popular social media account. An X account named Serenity posted that it had built a position in X-Fab Silicon Foundries SE, a Paris-listed company with six semiconductor manufacturing facilities worldwide. The X account has over 400,000 followers.
The post, which garnered over 500,000 views, triggered a retail trading frenzy and pushed X-Fab's share price up by as much as 77%. By mid-afternoon, the stock was still up over 30%, with trading volume approximately 17 times its three-month average. The stock was halted for trading several times due to extreme price volatility. "We have noted the recent rise in our share price and trading volume," said X-Fab CEO Damian Mark. "The company is currently not aware of any material developments that have not been disclosed that should be announced."
This is not the first time this year a European tech stock has soared following a recommendation from Serenity; the user's profile describes them as both an "AI/Semiconductor Supply Chain Analyst" and an "AI Research Scientist." X-Fab's current share price of around €12 is more than double the average analyst target price of approximately €5.5. Data shows that out of the eight analysts tracking the stock, only one has a "Buy" rating. (Jin Shi)