Advanced Energy Industries (AEIS Quick QuoteAEIS - Free Report) continues to make strong efforts to expand its product portfolio in a bid to bolster its presence in the semiconductor industry.

The company’s latest launch of eVerest RF generator, which is a complete RF power delivery system, delivering transformational plasma power control technology for the Angstrom Era, testifies the aforesaid fact.

The eVerest RF power generator is designed to provide the precision plasma control required in the Angstrom Era etch and deposition processes. Moreover, it maximizes throughput and yield in the fabrication of next-generation semiconductors.

Further, it offers output power ranging from 3 to 10 kW and frequencies in the band of 1 to 60 MHz.

Growth Prospect

The recent launch keeps AEIS well-positioned to capitalize on the growth prospects present in the plasma power generator market.

Per a report from Valuates Reports, the market is expected to reach $6.15 billion by 2029, registering a CAGR of 9.7% between 2023 and 2029.

The growing prospects of Advanced Energy in this booming market are likely to instill investors' optimism in the stock in the near term.

AEIS shares have gained 35.9% in the year-to-date period, underperforming the Zacks Semiconductor Equipment - Wafer Fabrication industry’s rally of 42.3% and the Zacks Computer & Technology sector’s return of 40.5%.

Portfolio Expansion

Advanced Energy Industries also recently launched Luxtron M-1100, which is designed for plasma-enhanced semiconductor deposition and etch fabrication processes.

The converter simplifies implementation by enabling wall-mounting and enhances user experience, with support from Advanced Energy's global engineering teams.
    
Furthermore, the company unveiled UltraVolt AEQ, a new series of ultra-miniature isolated single and dual-output high voltage DC-DC converters.

These converters offer precise and stable output voltage, small size and enhanced isolation, making them ideal for medical, life science, industrial and semiconductor applications.

Advanced Energy also introduced the SL Power NGB800 (800 W) and NGB1200 (1200 W) to its NGB line of products, which offer leading power densities and meet the performance, size, reliability and compliance requirements of medical and industrial equipment.

Advanced Energy's expanding portfolio will likely drive its momentum in various end-markets, which in turn will benefit its financial performance.

However, the company is currently suffering from semiconductor market correction, component shortages, competitive pressure and disruptions caused by the war between Ukraine and Russia.

The Zacks Consensus Estimate for 2023 revenues is pegged at $1.72 billion. indicating a decline of 6.8% from 2022. The consensus mark for 2023 earnings stands at $4.77, implying a fall of 26.5% from 2022.

Zacks Rank & Stocks to Consider

Currently, Advanced Energy Industries carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Salesforce (CRM Quick QuoteCRM - Free Report) , Akamai Technologies (AKAM Quick QuoteAKAM - Free Report) , AvidXchange (AVDX Quick QuoteAVDX - Free Report) . Salesforce sports a Zacks Rank #1 (Strong Buy), while Akamai Technologies and AvidXchange carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Salesforce shares have gained 70.7% in the year-to-date period. The long-term earnings growth rate for CRM is currently projected at 19.25%.

Akamai shares have gained 9.5% in the year-to-date period. The long-term earnings growth rate for AKAM is currently projected at 10%.

AvidXchange shares have increased 21.1% in the year-to-date period. The long-term earnings growth rate for AVDX is currently projected at 22.90%.