Seeking Alpha: After A Strong Run, Advanced Energy Industries Still Controversial

A strong market-beating run over the past year hasn't done much to resolve the arguments about Advanced Energy Industries (AEIS). Depending upon which sell-side analysts you follow, AEIS is either a deeply cyclical supplier to the semiconductor industry or an emerging growth story in solar power. As is often the case, the truth probably lies in between - the inverter business at AEIS has some very legitimate growth potential as solar power markets develop, but it will be a while before the growth of solar and the non-semiconductor applications for the thin films business can offset the inherent cyclicality of semiconductor capital equipment.

I'm not as bullish on AEIS now as I was in my September write-up, but that's almost solely because the nearly 50% move in the meantime has taken the significant undervaluation out of the stock. I'm still bullish on the company on balance, and very interested to see what the company can accomplish in terms of new market opportunities for thin films. I'd need a pullback into the low $20's to get really excited about the shares again, but I'd be in no rush to sell if I already held them.

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After A Strong Run, Advanced Energy Industries Still Controversial