We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AEIS Benefits From Strong Semiconductor Growth: More Upside Ahead?
Read MoreHide Full Article
Key Takeaways
AEIS benefits from strong semiconductor demand, with 2025 segment revenues up 6% year over year.
AEIS launched 26 new products in 2025, expanding its reach across semiconductor and industrial markets.
AEIS expects Q1 2026 revenues near $500M, driven by AI, data centers and industrial demand.
Advanced Energy (AEIS - Free Report) is benefiting from strong semiconductor growth, which positions the company for further upside. Growth in the semiconductor market is driven by strong customer demand for EVOS, eVerest and NavX products. In 2025, the semiconductor segment experienced strong growth, with revenues increasing 6% year over year, reaching the second-highest level in the company’s history.
The company’s expanding portfolio has been noteworthy. In 2025, AEIS introduced 26 new products across its target markets, including semiconductor, industrial, and medical applications, which helped drive growth and expand its market presence.
The semiconductor industry has been experiencing a surge in demand due to the increasing adoption of advanced technologies such as artificial intelligence (AI), cloud computing, and the Internet of Things (IoT). The company’s focus on developing products for next-generation semiconductor technologies, including eVoS, NavX, and 800-volt products, has been a major growth driver. These innovations are expected to drive future growth by addressing the needs of customers working on advanced semiconductor processes.
AEIS is optimistic about continued growth in the semiconductor industry. The company expects strong demand from new and existing customers, driven by advancements in AI, data center computing, and industrial applications. This is expected to benefit from the company’s top-line growth. For the first quarter of 2026, Advanced Energy expects revenues to be $500 million (+/- $20 million).
AEIS Faces Stiff Competition
The company is facing stiff competition from companies like KLA Corporation (KLAC - Free Report) and MKS (MKSI - Free Report) . Both KLA Corporation and MKSI are expanding their footprint in the semiconductor market.
KLA is benefiting from strong demand for leading-edge logic, high-bandwidth memory and advanced packaging, which is driving market share growth in the semiconductor industry. The rising demand for more powerful chip systems is driving growth in advanced packaging. KLA has seen significant momentum in this market, with advanced packaging revenues growing more than 70% year over year in 2025. This trend is expected to continue in 2026, with growth in the mid- to high teens.
MKSI benefits from strong demand in the semiconductor market. In the fourth quarter of 2025, revenues from the Semiconductor market increased 8.7% year over year to $435 million. Sequentially, it increased 5%. Growth in the Semiconductor market was primarily fueled by strengthening demand in DRAM, logic, and foundry applications, as well as robust order activity in plasma and reactive gases products.
AEIS Share Price Performance, Valuation and Estimates
Advanced Energy shares are currently overvalued, as suggested by its Value Score of F. In terms of the forward 12-month Price/Earnings ratio, AEIS is trading at 46.85, higher than the Semiconductor Equipment - Wafer Fabrication industry’s 39.29X.
AEIS Valuation
Image Source: Zacks Investment Research
For 2026, the Zacks Consensus Estimate for earnings is $8.32 per share, up 1.46% over the past 30 days. The figure implies a year-over-year decrease of 29.8%.
Advanced Energy Industries, Inc. Price and Consensus
View the Zacks #1 Rank List
Image: Bigstock
AEIS Benefits From Strong Semiconductor Growth: More Upside Ahead?
Key Takeaways
Advanced Energy (AEIS - Free Report) is benefiting from strong semiconductor growth, which positions the company for further upside. Growth in the semiconductor market is driven by strong customer demand for EVOS, eVerest and NavX products. In 2025, the semiconductor segment experienced strong growth, with revenues increasing 6% year over year, reaching the second-highest level in the company’s history.
The company’s expanding portfolio has been noteworthy. In 2025, AEIS introduced 26 new products across its target markets, including semiconductor, industrial, and medical applications, which helped drive growth and expand its market presence.
The semiconductor industry has been experiencing a surge in demand due to the increasing adoption of advanced technologies such as artificial intelligence (AI), cloud computing, and the Internet of Things (IoT). The company’s focus on developing products for next-generation semiconductor technologies, including eVoS, NavX, and 800-volt products, has been a major growth driver. These innovations are expected to drive future growth by addressing the needs of customers working on advanced semiconductor processes.
AEIS is optimistic about continued growth in the semiconductor industry. The company expects strong demand from new and existing customers, driven by advancements in AI, data center computing, and industrial applications. This is expected to benefit from the company’s top-line growth. For the first quarter of 2026, Advanced Energy expects revenues to be $500 million (+/- $20 million).
AEIS Faces Stiff Competition
The company is facing stiff competition from companies like KLA Corporation (KLAC - Free Report) and MKS (MKSI - Free Report) . Both KLA Corporation and MKSI are expanding their footprint in the semiconductor market.
KLA is benefiting from strong demand for leading-edge logic, high-bandwidth memory and advanced packaging, which is driving market share growth in the semiconductor industry. The rising demand for more powerful chip systems is driving growth in advanced packaging. KLA has seen significant momentum in this market, with advanced packaging revenues growing more than 70% year over year in 2025. This trend is expected to continue in 2026, with growth in the mid- to high teens.
MKSI benefits from strong demand in the semiconductor market. In the fourth quarter of 2025, revenues from the Semiconductor market increased 8.7% year over year to $435 million. Sequentially, it increased 5%. Growth in the Semiconductor market was primarily fueled by strengthening demand in DRAM, logic, and foundry applications, as well as robust order activity in plasma and reactive gases products.
AEIS Share Price Performance, Valuation and Estimates
Advanced Energy shares have appreciated 105.6% in the trailing six months, outperforming the Zacks Computer & Technology sector’s decline of 2.9% and the Zacks Semiconductor Equipment - Wafer Fabrication industry’s surge of 46.5%.
AEIS Stock Performance
Image Source: Zacks Investment Research
Advanced Energy shares are currently overvalued, as suggested by its Value Score of F. In terms of the forward 12-month Price/Earnings ratio, AEIS is trading at 46.85, higher than the Semiconductor Equipment - Wafer Fabrication industry’s 39.29X.
AEIS Valuation
Image Source: Zacks Investment Research
For 2026, the Zacks Consensus Estimate for earnings is $8.32 per share, up 1.46% over the past 30 days. The figure implies a year-over-year decrease of 29.8%.
Advanced Energy Industries, Inc. Price and Consensus
Advanced Energy Industries, Inc. price-consensus-chart | Advanced Energy Industries, Inc. Quote
Advanced Energy currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.