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Bull of the Day: Advanced Energy Industries, Inc. (AEIS)
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Key Takeaways
Why AEIS is a top-ranked AI stock to buy for long-term behind-the-scenes growth.
Its beat-and-raise Q3 earnings report in early November confirmed its AI bull case.
The Zacks Rank #1 (Strong Buy) AI infrastructure stock's pullback offers a solid entry point.
Advanced Energy Industries (AEIS - Free Report) is a leader in precision power conversion and beyond for artificial intelligence (AI) chips, data centers, and other critical growth areas of technology and the economy.
The tech firm’s growth outlook improved again after another big beat-and-raise quarter in early November, spurred by “increased demand for our AI data center solutions.”
Advanced Energy Industries grew its Data Center Computing segment revenue by 113% in Q3. Its recent AI data center infrastructure ramp-up makes AEIS a strong picks-and-shovels AI stock for investors to consider buying now and in 2026.
AEIS’s recent upward earnings revisions confirmed its bullish AI-boosted outlook and help Advanced Energy Industries earn a Zacks Rank #1 (Strong Buy).
The stock has doubled the Tech sector (+1,500) over the last 15 years, including a Tech and Nvidia crushing 60% charge in 2025.
Image Source: Zacks Investment Research
The recent AI-driven pullback offers investors a great opportunity to purchase Advanced Energy Industries stock nearly 20% below its highs.
Despite the drop on Thursday, Nvidia confirmed that the AI arms race remains full steam ahead. The selling marks a healthy recalibration to shake the froth off the top of an overheated market.
AEIS is attempting to hold its ground at a key moving average, with any larger pullback likely marking an even better entry point for long-term investors. Simply put, if investors were happy about buying AI stocks like AEIS several weeks ago, they should be even more excited now.
Buy Top-Ranked AEIS Stock and Hold for AI Upside
Advanced Energy Industries designs and makes precision power conversion, measurement, and control solutions. The firm’s various products and solutions serve customers across critical industries such as semiconductor equipment, energy, manufacturing, networking and telecommunications, and, more importantly, AI data centers.
AEIS’s largest market has traditionally been semiconductor manufacturing. Its power conversion systems enable some of the key processes needed to build advanced chips, including the current king of tech, AI GPUs like the ones Nvidia (NVDA - Free Report) makes.
Image Source: Zacks Investment Research
AEIS has recently experienced explosive growth in data center computing, helping supply the efficient, high-power-density power conversion tech used in massive AI server racks from AI hyperscalers like Google, Microsoft, and Amazon.
Demand for AEIS's newest ultra-efficient converters has surged amid the AI arms race. Its Data Center Computing revenue soared roughly 108% in the first three quarters of 2025.
Advanced Energy Industries has transformed into an AI infrastructure company and a classic picks and shovels investment to capture the AI data center boom, no matter who the forward-facing winners are.
The company is also well diversified, with an established track record of growth long before AI. On top of that, it pays a dividend, which is supported by its sturdy balance sheet.
The AI Infrastructure Company’s Growth Outlook
Advanced Energy Industries grew its Q3 revenue by 23% and its adjusted earnings by 78%. Its top and bottom lines were boosted by its data center segment, which skyrocketed 113% YoY and 21% sequentially.
The company topped our Q3 EPS estimate by 18% marking its fourth-straight 18% beat. “Third quarter results surpassed the high end of our guidance due to increased demand for our AI data center solutions,” CEO Steve Kelley said in a statement.
Image Source: Zacks Investment Research
The company boosted its guidance on the back of its bullish AI runway. AEIS saw its Q4 consensus earnings estimate jump 16% since its November 4 release, with its 2026 estimate 14% higher.
The AI data center stock’s upbeat EPS outlook, which includes its Most Accurate estimates coming in well above consensus, helps it land a Zacks Rank #1 (Strong Buy) right now.
Buy this AI Data Center Stock On the Dip, Or Wait?
AEIS stock skyrocketed 1,500% over the past 15 years to double the Tech sector. This run includes a Tech and Nvidia crushing 60% charge in 2025 that saw it break out meaningfully above its previous trading range that it was stuck in between early 2021 until the summer of 2025.
The AI data center stock fell to its 50-day moving average on Thursday following the broader market selloff.
The downturn came despite Nvidia’s latest blockbuster quarter that confirmed the AI race remains in high gear. The selling is healthy and shows that the bulls are ready to finally take some profits after a huge run off the April lows.
Image Source: Zacks Investment Research
Advanced Energy Industries' stock has no doubt cooled down in terms of RSI levels. Still, it might face more selling pressure if the broader selloff ramps up.
Of course, market timing is exceedingly difficult, meaning investors might want to dip their toes in now in case a near-term bottom is already in. If not, long-term investors can buy more AEIS shares at even lower prices down the road.
If its earnings growth holds up, AEIS stock looks cheap compared to Tech. It trades at a 30% discount to the Zacks Tech sector and 80% below its recent highs with a price/earnings-to-growth (PEG) ratio of 0.99 (vs. Tech’s 1.4 and its 5.6 highs).
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Bull of the Day: Advanced Energy Industries, Inc. (AEIS)
Key Takeaways
Advanced Energy Industries (AEIS - Free Report) is a leader in precision power conversion and beyond for artificial intelligence (AI) chips, data centers, and other critical growth areas of technology and the economy.
The tech firm’s growth outlook improved again after another big beat-and-raise quarter in early November, spurred by “increased demand for our AI data center solutions.”
Advanced Energy Industries grew its Data Center Computing segment revenue by 113% in Q3. Its recent AI data center infrastructure ramp-up makes AEIS a strong picks-and-shovels AI stock for investors to consider buying now and in 2026.
AEIS’s recent upward earnings revisions confirmed its bullish AI-boosted outlook and help Advanced Energy Industries earn a Zacks Rank #1 (Strong Buy).
The stock has doubled the Tech sector (+1,500) over the last 15 years, including a Tech and Nvidia crushing 60% charge in 2025.
Image Source: Zacks Investment Research
The recent AI-driven pullback offers investors a great opportunity to purchase Advanced Energy Industries stock nearly 20% below its highs.
Despite the drop on Thursday, Nvidia confirmed that the AI arms race remains full steam ahead. The selling marks a healthy recalibration to shake the froth off the top of an overheated market.
AEIS is attempting to hold its ground at a key moving average, with any larger pullback likely marking an even better entry point for long-term investors. Simply put, if investors were happy about buying AI stocks like AEIS several weeks ago, they should be even more excited now.
Buy Top-Ranked AEIS Stock and Hold for AI Upside
Advanced Energy Industries designs and makes precision power conversion, measurement, and control solutions. The firm’s various products and solutions serve customers across critical industries such as semiconductor equipment, energy, manufacturing, networking and telecommunications, and, more importantly, AI data centers.
AEIS’s largest market has traditionally been semiconductor manufacturing. Its power conversion systems enable some of the key processes needed to build advanced chips, including the current king of tech, AI GPUs like the ones Nvidia (NVDA - Free Report) makes.
Image Source: Zacks Investment Research
AEIS has recently experienced explosive growth in data center computing, helping supply the efficient, high-power-density power conversion tech used in massive AI server racks from AI hyperscalers like Google, Microsoft, and Amazon.
Demand for AEIS's newest ultra-efficient converters has surged amid the AI arms race. Its Data Center Computing revenue soared roughly 108% in the first three quarters of 2025.
Advanced Energy Industries has transformed into an AI infrastructure company and a classic picks and shovels investment to capture the AI data center boom, no matter who the forward-facing winners are.
The company is also well diversified, with an established track record of growth long before AI. On top of that, it pays a dividend, which is supported by its sturdy balance sheet.
The AI Infrastructure Company’s Growth Outlook
Advanced Energy Industries grew its Q3 revenue by 23% and its adjusted earnings by 78%. Its top and bottom lines were boosted by its data center segment, which skyrocketed 113% YoY and 21% sequentially.
The company topped our Q3 EPS estimate by 18% marking its fourth-straight 18% beat. “Third quarter results surpassed the high end of our guidance due to increased demand for our AI data center solutions,” CEO Steve Kelley said in a statement.
Image Source: Zacks Investment Research
The company boosted its guidance on the back of its bullish AI runway. AEIS saw its Q4 consensus earnings estimate jump 16% since its November 4 release, with its 2026 estimate 14% higher.
The AI data center stock’s upbeat EPS outlook, which includes its Most Accurate estimates coming in well above consensus, helps it land a Zacks Rank #1 (Strong Buy) right now.
Buy this AI Data Center Stock On the Dip, Or Wait?
AEIS stock skyrocketed 1,500% over the past 15 years to double the Tech sector. This run includes a Tech and Nvidia crushing 60% charge in 2025 that saw it break out meaningfully above its previous trading range that it was stuck in between early 2021 until the summer of 2025.
The AI data center stock fell to its 50-day moving average on Thursday following the broader market selloff.
The downturn came despite Nvidia’s latest blockbuster quarter that confirmed the AI race remains in high gear. The selling is healthy and shows that the bulls are ready to finally take some profits after a huge run off the April lows.
Image Source: Zacks Investment Research
Advanced Energy Industries' stock has no doubt cooled down in terms of RSI levels. Still, it might face more selling pressure if the broader selloff ramps up.
Of course, market timing is exceedingly difficult, meaning investors might want to dip their toes in now in case a near-term bottom is already in. If not, long-term investors can buy more AEIS shares at even lower prices down the road.
If its earnings growth holds up, AEIS stock looks cheap compared to Tech. It trades at a 30% discount to the Zacks Tech sector and 80% below its recent highs with a price/earnings-to-growth (PEG) ratio of 0.99 (vs. Tech’s 1.4 and its 5.6 highs).