Siltronic's recovery remains uneven, as weakness in industrial, automotive and other markets continues to weigh on overall performance, Jefferies analysts say in a research note. While inventory levels are improving and pricing pressure is easing, there is no evidence of a broad industry turnaround, the analysts say. Instead, profitability is expected to recover only gradually, with higher sales volumes rather than stronger pricing driving earnings in the near term, they say. Nevertheless, the German manufacturer is expected to report a modest improvement in its second-quarter results, supported by strong demand for advanced silicon wafers used in AI applications, the analysts say. Although Siltronic is well-positioned, the financial impact of booming AI demand will take time to materialize, they add. Shares trade 6.1% higher at 86.5 euros. (nina.kienle@wsj.com)