AMS shares rose by 26% today after the Austria-based electronic chip maker raised its revenue outlook on rising demand for its sensors from smartphone makers such as Apple, beating analyst forecasts.
The increase will likely allay concerns that weak iPhone X orders are likely to persist during the first half of 2018.
AMS raised its compound annual revenue growth rate forecast for 2016-2019 to 60% from 40%.
The new forecast mean 2019 revenues are now expected to be more than €2.2 billion, well above analyst expectations of €1.8 billion.
The Swiss-listed group supplies optical sensors that help adjust the brightness and colours on phone screens and can help with features like facial recognition.
AMS is also working on environmental sensors which can detect gas particles or pollution levels, as well as health monitors which can be installed on mobile phones.
"The substantial upward change driven by a range of revenue pipeline opportunities in smartphone and consumer applications that are clearly coming into view," AMS said.
Credit Suisse analysts said they believe these opportunities may include front-end 3D sensing in future iPhone and iPad models as well as at some Chinese smartphone vendors.
AMS said its revenue for 2017 nearly doubled to a record €1.06 billion.
AMS shares had already more than tripled in value last year as the launch of the tenth anniversary iPhone in September lifted expectations for demand.