About nine months ago, I thought that Advanced Energy Industries (NASDAQ:AEIS) had been sold down to an interesting value level
as the potential of the company's precision power supply business was
being overshadowed by growing worries about the solar inverter business.
Since then, AEIS has seen significant management turnover and improving
demand from semi customers and announced its intention to find new
options for the inverter business; all of which has helped fuel a
roughly 60% rise in the shares.
Valuation on AEIS shares isn't so
compelling now, though there is near-term upside potential from
front-end semiconductor equipment demand (particularly for advanced
architectures) and longer-term potential from the company's
diversification into adjacent end markets and product markets like
high-voltage. Finding an honorable exit from the inverter business would
be an incremental positive as well.
Read more here:
Advanced Energy Industries Powering Up
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