Camtek (CAMT) Secures $20 Million Order From OSAT Provider

Core Insights - Camtek has received a $20 million order from a tier-1 OSAT provider for inspection and metrology tools in Advanced Packaging applications, with delivery scheduled for the second half of 2024 [1] - The high bandwidth memory (HBM) market is projected to grow from $2.52 billion in 2024 to $7.95 billion by 2029, reflecting a compound annual growth rate (CAGR) of 25.86% [2] - Camtek's performance is driven by high demand for high-performance computing, with approximately 300 systems ordered in the second half of 2023 from tier-1 companies in the HBM and AI sectors [4] Company Performance - The Zacks Consensus Estimate for Camtek's second-quarter 2024 earnings has been revised upward from 62 cents to 65 cents, and for fiscal 2024, the estimate has increased from $2.52 to $2.61 [5] - Camtek's shares have surged 97.2% year-to-date, contrasting with a 3.8% decline in the Zacks Electronics - Measuring Instruments industry, indicating strong investor confidence [6] - In the past year, Camtek has secured multiple orders, including a significant $25 million order from a tier-1 HBM manufacturer [7] Market Dynamics - The demand for HBMs is driven by applications in Data Center Optimization and artificial intelligence, attracting major companies like Micron, Cadence, and Intel [3] - Camtek's revenue contribution from HBM increased from a single-digit percentage in the first half of 2023 to approximately 20% in 2023, and further to 40% in the first quarter of 2024 [9] - The company is consistently receiving orders for its systems, primarily due to the growing demand in the HBM category, with a positive outlook for the industry [10]