Photronics Q2 Earnings Preview: I Need To See High-End ICs Making A Larger Impact

Photronics remains a hold as current valuation appears stretched, with limited near-term growth despite AI-related tailwinds. Q2 guidance aligns with consensus: $216M revenue and $0.53 EPS, with a slight beat possible but not expected to be dramatic. Capacity expansion ($330M capex) targets high-end ICs, but margin improvement and top-line acceleration remain uncertain.