Axcelis Technologies, Inc ACLS recently unveiled the successful shipment of multiple Purion M SiC medium current implanters to Chinese power device chip manufacturers this quarter.
These cutting-edge solutions are earmarked for the 150mm production of silicon carbide power devices catering to diverse sectors including industrial, energy, automotive, and other power-intensive applications.
Axcelis Technologies, Inc. Price and Consensus
Axcelis Technologies, Inc. price-consensus-chart | Axcelis Technologies, Inc. Quote
Prior to this notable achievement, ACLS had dispatched Purion H SiC Power Series and Purion M SiC Power Series ion implanter systems to power device chipmakers across Asia and Europe. Furthermore, in December of the illustrious year 2023, it sent off Purion XE high energy and Purion H high current implanters to various fabs in Korea and China for the production of DRAM memory devices.
Driving Innovations in Semiconductor Fabrication
Axcelis stands as a pioneering force in the realm of ion implantation equipment crucial for semiconductor manufacturing. The crescendo in top-line performance can be attributed to the surging customer demand for its Purion suite of products, especially in the flourishing silicon-carbide power market.
The transition towards electric vehicles acts as a potent catalyst propelling growth in the silicon-carbide power device segment, hence fueling the demand for Axcelis’ Purion products, particularly the PurionH200 silicon carbide, Purion XE silicon carbide systems, and Purion M silicon carbide tool.
The Purion H200 and Purion XE silicon carbide systems have garnered substantial traction, courtesy of the strategic deployment by customers in new fab projects. Initially, these customers embrace the core Purion M silicon carbide tool and subsequently adopt Purion H200 silicon carbide and Purion XE silicon carbide systems to enhance productivity and cost efficiency, as underscored by the management.
In the eventful year of 2023, Axcelis reported a remarkable 23% surge in revenues amounting to $1.13 billion, buttressed by the robust adoption of Purion products. System revenues witnessed a staggering 28% uptick to $883.6 million. Demonstrating its global prowess, China emerged as a pivotal market, contributing 46% to the total system revenues in 2023.
Future Projections and Market Dynamics
Riding on the momentum in the power segment, ACLS is sanguine about achieving the targeted $1.3 billion in revenues by 2025. Notably, for the upcoming year of 2024, revenues are anticipated to mirror the levels of 2023, with a projection of higher revenues in the latter part of the year.
Nonetheless, the prevalent weakness in the general mature and memory markets remains a lingering concern. Against the backdrop of a volatile macroeconomic landscape, heightened expenses directed towards research and development amid infrastructural challenges pose as additional headwinds.
ACLS currently maintains a Zacks Rank #3 (Hold). Over the past year, the company’s shares have experienced a 14% decline, contrasting the robust 29.1% growth witnessed in the sub-industry.
Exploring Investment Opportunities
For investors seeking promising avenues within the broader technology domain, some noteworthy stocks to consider are Manhattan Associates MANH, Synopsys SNPS, and Microsoft MSFT. While Manhattan Associates and Synopsys enjoy a Zacks Rank #1 each, Microsoft boasts a Zacks Rank of 2 (Buy) at present.
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Microsoft’s fiscal 2024 EPS is pegged at $11.63 with an 18.6% growth from the previous year. The tech giant too has witnessed significant success, with its shares rallying by an impressive 56.2% in the past year.
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