Advanced Energy Industries (AEIS Quick QuoteAEIS - Free Report) recently introduced the NP08, the first member of the next-generation NeoPower (NP) family of AC-DC configurable industrial and medical power supplies.

The NP08 boasts a power density of 18 W/in3, up to four times higher than traditional solutions, setting a new standard in a compact yet robust design. With eight output power slots, the NP08 allows for rapid and flexible configuration, reaching a maximum power rating of 4,000 W.

NPO8’s integrated and adaptable communication capabilities support various digital communication protocols without requiring design modifications. The NP08 is not only versatile in configuration, operating as a voltage or current source with exceptionally low noise performance, but it is also fully compliant with medical safety standards and SEMI F47 immunity standards.

NPO8’s broad AC input range and compatibility with Advanced Energy's ConnectedPower portfolio, featuring RS-485 (MODBUS RTU), PMBUS, and CANBUS (CANOPEN) protocols, make the NP08 an ideal choice for applications ranging from industrial power systems to medical equipment and its comprehensive connectivity positions it as a standout solution for IoT applications requiring cloud-based monitoring and control.

Advanced Energy Benefits from Robust Portfolio

Advanced Energy is benefiting from strong momentum across telecom and networking and industrial and medical end-markets. Solid demand for high voltage and strong design wins in etching and deposition is contributing well.

AEIS's noteworthy expansion is evident with the launch of 19 new products across its markets. It also launched five new products into the Industrial and medical market, including the iHP-Liquid, a fully-sealed liquid-cooled power supply designed to operate in harsh manufacturing environments.

In October, AEIS further expanded its portfolio with the Artesyn CSU3200ET series, a 3200 W ultra-high-density power supply catering to space-constrained applications, boasting up to 96% efficiency and 80PLUS Titanium certification for AI and ML computing needs.

In the third quarter of 2023, AEIS experienced increased demand for RF and high-voltage products, actively deploying next-gen platforms, eVerest and eVoS. The platforms tackle sub-2-nanometer challenges and anticipate significant long-term growth.

However, the company is still experiencing shortages of selected power MOSFET, power analog and microcontroller components. For the fourth quarter of 2023, AEIS anticipates revenues of $405 million (+/- $15 million).

The Zacks Consensus Estimate for revenue is pegged at $412.02 million, suggesting a year-over-year decline of 16.04%.

Advanced Energy expects non-GAAP earnings of $1.15 per share (+/- 20 cents). The Zacks Consensus Estimate for earnings is pegged at $1.23 per share, indicating a decline of 27.65%.

Zacks Rank & Stocks to Consider

Currently, AEIS has a Zacks Rank #3 (Hold).

AEIS’ shares have returned 11.2% year to date compared with the Zacks Computer & Technology sector’s rally of 46.3%.

NVIDIA (NVDA Quick QuoteNVDA - Free Report) , NetEase (NTES Quick QuoteNTES - Free Report) and Intel (INTC Quick QuoteINTC - Free Report) are a couple of better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NVDA, NTES and INTC shares have returned 238.4%, 60.4% and 64.9%, respectively, on a year-to-date basis.

Long-term earnings growth rates for NVIDIA, NetEase and Intel are pegged at 13.5%,15.98 and 14.18%, respectively.