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Amtech Systems Soars 67% in a Month: Is the Stock Still Worth Buying?
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Key Takeaways
ASYS gained 67.1% in a month, beating peers like NVDA, STM and TXN.
Q3 sales of AI packaging gear surged 5x Y/Y, driving investor confidence.
ASYS trades at 1.42X P/S, well below the industry's 13.96X multiple.
Amtech Systems (ASYS - Free Report) shares have surged 67.1% in the past month, outperforming the Zacks Semiconductor - General industry’s decline of 6.7%. The robust rally in its share price was mainly driven by the better-than-expected results for the third quarter of fiscal 2025.
Third-quarter revenues of $19.6 billion came way ahead of the Zacks Consensus Estimate of $16 million, while the non-GAAP EPS of 6 cents crushed the consensus mark of loss of 8 cents. This instilled investors’ confidence in the company’s growth prospects, resulting in a spike in its shares.
The stock also outperformed its industry peers, including NVIDIA (NVDA - Free Report) , STMicroelectronics (STM - Free Report) and Texas Instruments (TXN - Free Report) . In the past month, shares of STMicroelectronics and Texas Instruments have gained 4.7% and 0.7% respectively, while NVIDIA shares have lost 4.8%.
The outperformance of Amtech Systems’ share price raises the question: Does it still have room to run, or is it time for investors to consider taking profits? Let’s find out.
One-Month Price Return Performance
Image Source: Zacks Investment Research
Strong Advanced Packaging Demand Aids ASYS’ Prospects
The long-term prospects for the advanced semiconductor packaging industry remain strong, with growing momentum in the sector serving as a tailwind for capital equipment demand. According to a Mordor Intelligence report, the advanced packaging market is estimated to reach $89.89 billion by 2030 from the projection of $51.62 billion for 2025, seeing a CAGR of 11.73%.
Amtech Systems has identified advanced packaging as a significant growth opportunity, particularly within artificial intelligence (AI) infrastructure. In the third quarter of fiscal 2025, the company observed a strengthening demand for its equipment used in advanced packaging applications, particularly within AI infrastructure.
During the third quarter, sales of equipment used in AI infrastructure were five times higher than a year ago and made up about 25% of Thermal Processing Solutions’ revenues. This shows how quickly AI demand is becoming an important part of Amtech Systems’ business. Moreover, management stated that bookings during the third quarter suggest that AI-related demand should remain strong going forward. This uptick in demand is expected to serve as a growth catalyst.
In alignment with this positive momentum, Amtech Systems projected revenues of $17-$19 million for the fourth quarter of fiscal 2025, where growth in AI-related equipment sales is expected to be the major growth catalyst. This outlook reflects the company's confidence in sustaining growth, driven by ongoing investments in AI-related packaging and thermal management solutions.
Amtech Systems has made substantial progress in restructuring its operations to improve cost efficiency and better align with evolving market demands. These efforts are already yielding tangible results. Over the last year and a half, it has reduced its factory footprint by reducing its manufacturing factories from seven sites to four sites, while shifting some production to partners. A core element of this transformation is the adoption of a semi-fabless manufacturing model, which has effectively reduced fixed costs and improved operational leverage. In the third quarter of fiscal 2025, these steps have resulted in $13 million of annual savings.
In response to inflationary pressures, Amtech Systems has proactively implemented pricing adjustments over the past several quarters to improve its product margins. Amtech Systems is working to improve profitability through a stronger mix of AI-related equipment and recurring revenues from consumables and service. ASYS will continue to manage its pricing strategy with a focus on sustaining robust margins and ensuring long-term profitability in a dynamic market landscape. Though the consensus mark for top-line estimates for fiscal 2025 revenues suggests a decline of 24.4%, it is forecasted to mark a strong recovery in fiscal 2026 with a jump of 4.6%.
The Zacks Consensus Estimate for Amtech Systems’ fiscal 2025 is pegged at a loss of 6 cents per share, narrower than a loss of 63 cents projected 60 days ago. The Zacks Consensus Estimate for Amtech Systems’ fiscal 2026 earnings is pegged at 15 cents per share, and has remained unchanged over the past 30 days, indicating year-over-year growth of 350%.
Image Source: Zacks Investment Research
ASYS Stock Trades at Discounted Valuation
Amtech Systems is currently trading at a lower price-to-sales (P/S) multiple compared to the industry. ASYS’ forward 12-month P/S ratio sits at 1.42X, significantly lower than the industry’s forward 12-month P/S ratio of 13.96X.
ASYS Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Amtech Systems stock also trades at a lower P/S multiple compared with other industry peers, including NVIDIA, STMicroelectronics and Texas Instruments. At present, NVIDIA, STMicroelectronics and Texas Instruments have P/S multiples of 17.07X, 1.85X and 8.98X, respectively.
Conclusion: Buy Amtech Systems Stock Right Now
Amtech Systems is well-positioned for growth, driven by rising demand for advanced packaging and capital equipment. Strategic investments and market tailwinds support its long-term potential. With strong fundamentals, discounted valuation and a favorable industry outlook, Amtech Systems presents a compelling buying opportunity for investors.
Image: Bigstock
Amtech Systems Soars 67% in a Month: Is the Stock Still Worth Buying?
Key Takeaways
Amtech Systems (ASYS - Free Report) shares have surged 67.1% in the past month, outperforming the Zacks Semiconductor - General industry’s decline of 6.7%. The robust rally in its share price was mainly driven by the better-than-expected results for the third quarter of fiscal 2025.
Third-quarter revenues of $19.6 billion came way ahead of the Zacks Consensus Estimate of $16 million, while the non-GAAP EPS of 6 cents crushed the consensus mark of loss of 8 cents. This instilled investors’ confidence in the company’s growth prospects, resulting in a spike in its shares.
The stock also outperformed its industry peers, including NVIDIA (NVDA - Free Report) , STMicroelectronics (STM - Free Report) and Texas Instruments (TXN - Free Report) . In the past month, shares of STMicroelectronics and Texas Instruments have gained 4.7% and 0.7% respectively, while NVIDIA shares have lost 4.8%.
The outperformance of Amtech Systems’ share price raises the question: Does it still have room to run, or is it time for investors to consider taking profits? Let’s find out.
One-Month Price Return Performance
Image Source: Zacks Investment Research
Strong Advanced Packaging Demand Aids ASYS’ Prospects
The long-term prospects for the advanced semiconductor packaging industry remain strong, with growing momentum in the sector serving as a tailwind for capital equipment demand. According to a Mordor Intelligence report, the advanced packaging market is estimated to reach $89.89 billion by 2030 from the projection of $51.62 billion for 2025, seeing a CAGR of 11.73%.
Amtech Systems has identified advanced packaging as a significant growth opportunity, particularly within artificial intelligence (AI) infrastructure. In the third quarter of fiscal 2025, the company observed a strengthening demand for its equipment used in advanced packaging applications, particularly within AI infrastructure.
During the third quarter, sales of equipment used in AI infrastructure were five times higher than a year ago and made up about 25% of Thermal Processing Solutions’ revenues. This shows how quickly AI demand is becoming an important part of Amtech Systems’ business. Moreover, management stated that bookings during the third quarter suggest that AI-related demand should remain strong going forward. This uptick in demand is expected to serve as a growth catalyst.
In alignment with this positive momentum, Amtech Systems projected revenues of $17-$19 million for the fourth quarter of fiscal 2025, where growth in AI-related equipment sales is expected to be the major growth catalyst. This outlook reflects the company's confidence in sustaining growth, driven by ongoing investments in AI-related packaging and thermal management solutions.
Restructuring & Cost Efficiency Boost ASYS’ Prospects
Amtech Systems has made substantial progress in restructuring its operations to improve cost efficiency and better align with evolving market demands. These efforts are already yielding tangible results. Over the last year and a half, it has reduced its factory footprint by reducing its manufacturing factories from seven sites to four sites, while shifting some production to partners. A core element of this transformation is the adoption of a semi-fabless manufacturing model, which has effectively reduced fixed costs and improved operational leverage. In the third quarter of fiscal 2025, these steps have resulted in $13 million of annual savings.
In response to inflationary pressures, Amtech Systems has proactively implemented pricing adjustments over the past several quarters to improve its product margins. Amtech Systems is working to improve profitability through a stronger mix of AI-related equipment and recurring revenues from consumables and service. ASYS will continue to manage its pricing strategy with a focus on sustaining robust margins and ensuring long-term profitability in a dynamic market landscape. Though the consensus mark for top-line estimates for fiscal 2025 revenues suggests a decline of 24.4%, it is forecasted to mark a strong recovery in fiscal 2026 with a jump of 4.6%.
The Zacks Consensus Estimate for Amtech Systems’ fiscal 2025 is pegged at a loss of 6 cents per share, narrower than a loss of 63 cents projected 60 days ago. The Zacks Consensus Estimate for Amtech Systems’ fiscal 2026 earnings is pegged at 15 cents per share, and has remained unchanged over the past 30 days, indicating year-over-year growth of 350%.
Image Source: Zacks Investment Research
ASYS Stock Trades at Discounted Valuation
Amtech Systems is currently trading at a lower price-to-sales (P/S) multiple compared to the industry. ASYS’ forward 12-month P/S ratio sits at 1.42X, significantly lower than the industry’s forward 12-month P/S ratio of 13.96X.
ASYS Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Amtech Systems stock also trades at a lower P/S multiple compared with other industry peers, including NVIDIA, STMicroelectronics and Texas Instruments. At present, NVIDIA, STMicroelectronics and Texas Instruments have P/S multiples of 17.07X, 1.85X and 8.98X, respectively.
Conclusion: Buy Amtech Systems Stock Right Now
Amtech Systems is well-positioned for growth, driven by rising demand for advanced packaging and capital equipment. Strategic investments and market tailwinds support its long-term potential. With strong fundamentals, discounted valuation and a favorable industry outlook, Amtech Systems presents a compelling buying opportunity for investors.
Currently, Amtech Systems sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.