The $100 per share price point is a magical threshold for many investors and companies. Stocks priced below that amount are considered affordable while those above it are “expensive.” It is why when many companies announce a stock split the ratio applied is typically sufficient to get the shares below $100. For example, Chipotle Mexican Grill (NYSE:CMG) trades at over $3,100 per share. Its shareholders just approved a 50-to-1 stock split, one of the largest splits in the history of the New York Stock Exchan ...

Core Viewpoint - Axcelis Technologies (NASDAQ: ACLS) is a leading company in the ion implantation segment of the semiconductor industry, holding a significant market share and demonstrating strong financial health, which positions it well for future growth [1][5]. Market Position and Share - ACLS is recognized as the leader in ion implantation, reportedly capturing around 61% of the global market valued at $1.85 billion in 2023, with a forecasted growth rate of 6.6% CAGR from 2023 to 2030 [2][3]. - The company focuses primarily on ion implantation, with over 90% of its total sales derived from this niche, allowing for specialized knowledge and innovation in the field [2][3]. Silicon Carbide (SiC) Demand - A significant portion of ACLS's revenue comes from silicon carbide (SiC), which is expected to grow at a remarkable 32.6% from 2024 to 2029, despite a temporary slowdown in demand due to oversaturation and reduced electric vehicle (EV) sales [3][4]. - The Purion Power Series from ACLS is positioned to capture growth in the SiC market, with recent shipments indicating ongoing demand for these products [4]. Financial Health - As of Q1 2024, ACLS reported approximately $530 million in cash and short-term investments with no outstanding debt, providing a strong buffer against market downturns [5]. - The company has managed to increase its margins even during challenging market conditions, showcasing effective resource management and operational efficiency [5][6]. Long-term Outlook - The long-term outlook for ACLS remains positive, with expectations of low-double-digit growth in the coming years, driven by its leadership in ion implantation and the robust demand for SiC [2][6]. - The management's decision to retire the incentive program is anticipated to further enhance operational efficiency and gross margins in the latter half of the year [6].

Core Insights - Electric vehicle (EV) chip stocks experienced significant gains this week, with Axcelis Technologies, Coherent, and Aehr Test Systems seeing increases of 13.2%, 15.7%, and 16.3% respectively, driven by positive commentary from automotive CEOs regarding a potential recovery in EV sales [1][2] Company-Specific Developments - Axcelis specializes in ion-implant equipment for silicon wafer production, including silicon carbide wafers, and received a price-target upgrade from Bank of America, increasing from $115 to $125, leading to a stock surge from approximately $111 to $127 [2][5] - Coherent appointed Jim Anderson as its new CEO, a move that was well-received in the market, contributing to a surge in its stock price even before positive EV sales news [5] - Aehr Test Systems has been actively presenting at industry conferences, highlighting optimistic growth prospects for its testing systems, and has announced new engagements with memory and AI accelerator customers, expanding beyond its core SiC auto chipmaking base [6] Industry Trends - The EV market, which had previously experienced a slowdown, is showing signs of recovery, with General Motors reporting its best month for all-electric vehicle sales in May and Ford disclosing a 65% increase in all-electric vehicle sales for the same month [3][4] - Coherent projects that the silicon carbide market will grow at an average rate of 28% from 2022 to 2030, expanding from $3 billion to $21 billion, indicating a potential long-term investment opportunity in EV chip stocks [7]

Core Viewpoint - The article highlights the potential investment opportunities in semiconductor stocks, particularly in light of the increasing demand for computing solutions driven by electric vehicles and artificial intelligence technologies [1]. Group 1: Axcelis Technologies - Axcelis Technologies manufactures ion implantation devices essential for chipmaking, particularly for silicon carbide used in consumer electronics and electric vehicles [2]. - The company controls approximately 75% of the silicon carbide ion implanter market, positioning it well for future growth despite a projected revenue decline of nearly 7% this year due to cautious investment from chipmakers [3][4]. - Revenue is expected to recover next year with over 16% growth as demand for energy-efficient technologies continues to rise [4]. Group 2: Intel - Intel has faced challenges in recent years, including a $7 billion loss in its foundry arm in 2023, but is pivoting towards third-party chipmaking, committing about $30 billion to this initiative [5][6]. - The chip foundry market is projected to double from $100 billion to over $200 billion by 2032, indicating significant growth potential for Intel [7]. - Despite recent struggles, Intel maintains a dominant market share, controlling 78% of the computer processor market and a similar share in the data center market [7][8]. Group 3: Broadcom - Broadcom specializes in communications technology and is increasingly relevant in the AI sector, providing essential infrastructure for AI data centers [8][9]. - The company has developed technology to optimize data delivery and energy consumption in AI applications, including a new ethernet switch that reduces power needs by 25% [10]. - Analysts expect Broadcom to report 41% revenue growth this year, followed by 14% growth next year, driven by the expanding AI hardware market projected to grow at an annualized rate of 26% through 2029 [11].

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Axcelis Technology could be an incredibly inexpensive bet on the future of power chips.The electric vehicle (EV) industry has lost some steam in 2024, especially in the U.S. High sticker prices and high interest rates have throttled growth to just 10% so far this year, especially as Tesla has had some missteps. Europe and China (the latter being far and away the largest market for EVs), however, have continued to chug higher by 21% and 32%, respectively, through the first few months of 2024. Taking a bigger ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Axcelis Technologies (ACLS) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Axcelis currently has an avera ...

Core Viewpoint - Axcelis Technologies is identified as a low-cost stock in the semiconductor sector with significant long-term growth potential, particularly in the expanding AI industry [1]. Group 1: Company Overview - Axcelis Technologies specializes in manufacturing ion implantation equipment essential for semiconductor fabrication, positioning itself as a critical player in the AI chipmaking supply chain [2]. - The company has experienced a remarkable stock price increase of 537% over the past five years, despite a recent 42% decline from its all-time high [1][4]. Group 2: Market Position and Demand - CEO Russell Lowe emphasizes that the AI industry's growth will necessitate increased manufacturing capacity across the semiconductor sector, leading to higher equipment sales for Axcelis [3]. - Axcelis has a current order backlog valued at $1.1 billion, indicating strong demand for its products, especially as it prepares for the broader adoption of AI technology across various devices [4][7]. Group 3: Financial Performance - In 2023, Axcelis reported a revenue increase of 23% to a record $1.13 billion, following a 39% growth in 2022, despite challenges in the traditional consumer segments of the chip industry [5]. - The company's revenue for Q1 2024 decreased by 6.5% year-over-year to approximately $252 million, with management forecasting flat revenue for the year but expecting a return to growth in 2025, projecting revenue of $1.3 billion [5][6]. Group 4: Valuation and Investment Potential - Axcelis stock is currently trading at a price-to-earnings (P/E) ratio of 14.7, which is a 52% discount compared to the iShares Semiconductor ETF's P/E of 30.9, suggesting significant upside potential [7]. - The company’s strong order backlog and anticipated return to revenue growth in 2025 present a compelling investment opportunity for long-term investors [7][8].

BEVERLY, Mass., May 7, 2024 /PRNewswire/ -- Axcelis Technologies, Inc. (NASDAQ: ACLS), a leading supplier of enabling ion implantation solutions for the semiconductor industry, announced the company's plans to participate in the following upcoming investor conferences:The 24th Annual B. Riley Institutional Investor Conference on Wednesday, May 22nd at the Beverly Hilton, Beverly Hills, CA.  Management will host a fireside chat at 9:45 am Pacific Time.  Management will also be available for one-on-one meetin ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-30941 AXCELIS TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Delaware 34-1818596 (S ...