Key Highlights

  • Shares rose 11.41% pre-market to $241.98 from a $217.19 close.
  • Q3 Revenue of $696.4 million beat the $644.9 million estimate.
  • Non-GAAP EPS was $3.65, versus $3.06 expected and $1.74 a year ago.

Advanced Energy Industries (NASDAQ:AEIS) shares rose 11.41% in pre-market trading on Tuesday to $241.98, from a Monday close of $217.19. The stock had fallen 2.19% in the prior session.

Advanced Energy is a Denver, Colorado maker of precision power conversion, measurement and control solutions. It has about 13,000 employees.

Semiconductor and Data Center Segments Lead Growth

Revenue was a record $696.4 million, up 21% sequentially and more than 50% year over year, ahead of an estimate near $644.9 million. Gross Margin was 42.1% and Operating Margin was 24.4%.

Semiconductor revenue was $322 million, up 64%, and data center computing was $256 million, up 49%. Industrial and medical revenue was $91 million, up 27%, and telecom and networking was $28 million.

Raised 2026 Outlook and 2027 Commentary

Fourth quarter revenue is guided to about $735 million, plus or minus $25 million, with non-GAAP EPS of $3.90, plus or minus $0.30. Full-year 2026 revenue growth is now expected near 40%, up from low to mid 30%, with EPS growth above 90%.

For 2027, management directionally expects total revenue growth of around 30%, up from a prior view of over 20%, with Demand potentially higher but Supply uncertain.

Thailand Factory, Capacity Plans and Valuation Data

The new Thailand factory is ramping, with two data center customers qualified. Revenue-generating capacity is on track to exceed $5 billion by the end of 2028. Cash ended at $1.42 billion, and the company redeemed its remaining 2028 convertible notes.

At $241.98, the shares sit about 39% below the 52-week high of $397.44 and about 29% above the 52-week low of $187.71. Market Capitalization is about $8.70 billion, with a forward price-to-earnings ratio of 14.71 and a Dividend Yield of 0.18%.

Capacity Ramp and Supply Constraints to Follow

Supply constraints persist in integrated circuits, circuit boards and specialty ceramics. Investors will follow the Thailand ramp and the fourth quarter guide.