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].

It was a good week for EV chip stocks as leading automotive CEOs hinted a recovery could be on the horizon.Shares of electric vehicle (EV) chip stocks Axcelis Technologies (ACLS 0.15%), Coherent (COHR -1.08%), and Aehr Test Systems (AEHR 5.02%) rallied this week, up 13.2%, 15.7%, and 16.3%, respectively, through Thursday trading, according to data from S&P Global Market Intelligence.Each of these companies plays a part in the production and testing of silicon carbide (SiC) chips, a newer compound that is th ...

Most investors are looking right past a handful of companies that will benefit from the brewing explosion of demand for computing solutions.Most investors understand the importance of diversifying their portfolios. However, there's no denying that technology stocks regularly outperform most other industries' stocks. That's why it wouldn't be entirely wrong to take on some additional exposure to these names and to the tickers leading the charge, in particular. Semiconductor stocks consistently rank among the ...

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 ...

Axcelis Technologies is one of the cheapest stocks in the chip sector, and it's packed with long-term potential.Semiconductor stocks have been a focal point for investors over the past year, with the likes of Nvidia and Advanced Micro Devices winning most of the attention because of their fast-growing presence in artificial intelligence (AI).But the AI opportunity is rapidly expanding, and one under-the-radar chip specialist says it's very excited to play a significant role in the industry, one that could d ...

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 ...

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $252.4 million, exceeding forecasts, with earnings per diluted share at $1.57, a 10% increase from $1.43 in the same period last year [6][18] - Gross margin improved by over 500 basis points, primarily due to product mix, despite higher selling costs, R&D, and taxes [6][19] - Systems bookings totaled $107 million, with a systems backlog of $1.1 billion at the end of the quarter [18] Business Line Data and Key Metrics Changes - Systems revenue was $195.4 million, while CS&I revenue was $56.9 million, reflecting flat system volume and a modest decline in CS&I compared to the prior year [18] - Mature nodes accounted for 99% of shipped systems revenue, with power devices leading at 55% of total systems revenue [9][10] - In the power segment, silicon carbide and silicon IGBTs represented 76% and 24% of the revenue recognized, respectively [10] Market Data and Key Metrics Changes - Geographically, China represented 59% of sales, followed by the U.S. at 17%, Japan at 7%, Europe at 4%, Korea at 4%, and the rest of the world at 9% [9] - The company expects China to represent 40% to 60% of quarterly systems revenue moving forward [11] Company Strategy and Development Direction - The company aims to extend its lead in the power market and establish a position in advanced logic through focused R&D and marketing efforts [7][14] - Investments are being made in joint development engagements and evaluation systems to grow market share [7][21] - The company is focused on improving operational efficiency and gross margins, with a retirement incentive program expected to yield cost savings in the second half of the year [20] Management's Comments on Operating Environment and Future Outlook - Management anticipates a stronger second half of 2024, driven by recovery in mature markets and continued strength in the power segment [17][68] - The timing of the recovery in memory markets is expected to be later than previously anticipated, with NAND recovery not expected until 2025 [11][68] - Management remains optimistic about long-term growth driven by trends in electric vehicles, AI, and IoT [14][16] Other Important Information - The company ended Q1 with $530.2 million in available cash and generated $42.2 million from operations [23] - A share repurchase program has returned over $200 million to shareholders since 2019 [23] Q&A Session Summary Question: Insights on near-term order dynamics and second half sales potential - Management noted a $1 billion run rate in the first half and expects a stronger second half, supported by a $1.1 billion backlog and improved quoting activity [28][29] Question: Impact of gross margin optimization initiatives - The early retirement incentive program is expected to cost approximately $1.5 million, with benefits accruing in the second half of 2024 [31] Question: DRAM recovery timeline and market drivers - Management acknowledged a slower DRAM recovery but noted strong demand for high-bandwidth memory and plans for future capacity expansions [36][39] Question: Trends in silicon carbide and other markets - Management confirmed continued strength in silicon carbide, with expectations for a recovery in general mature markets driven by consumer spending [47][52] Question: Long-term growth drivers and market conditions - Management highlighted the importance of power devices and the expected recovery in memory markets as key drivers for achieving long-term growth targets [72][74]