Citi analyst upgraded Advanced Energy Industries (NASDAQ:AEIS) to Buy from Neutral, raising the price target to $138 from $110. The upgrade reflects optimism about the company’s leadership in key markets and its potential to benefit from industry trends as fundamentals near a cyclical trough.
In the semiconductor equipment market, Advanced Energy’s strong position in plasma power is bolstered by innovative products such as eVoS, eVerest, and NavX. These technologies are expected to significantly boost revenue starting in the second half of 2025. Meanwhile, the data center computing segment, which saw double-digit growth in 2024, remains a standout, with continued strong demand driven by AI-related content expansion.
Although the industrial, medical, telecom, and network markets face challenges, Advanced Energy’s diversified end markets and expanding gross margins position the company for a higher valuation compared to its three-year average. These strengths underline its ability to navigate market variability while capitalizing on growth opportunities in high-demand sectors.