Despite strong demand for semiconductor equipment, recovering demand for a range of industrial and medical products, and ongoing investments in data centers, Advanced Energy Industries (AEIS) has been performing rather poorly. I’ll get to the financials in a moment, but the stock has lost another 20% or so in value since my last update, significantly underperforming comparables like Comet Holdings (COTN.S) and VAT Group (OTCPK:VACNY), as well as Delta Electronics.
While component shortages and supply chain issues may explain some of the challenges at AEIS, rivals don’t seem as bothered, raising the question of whether AEIS is losing share and losing momentum in its core businesses. It may be premature to question the company’s ability to participate in the strong semi equipment growth cycle, but the market is clearly out of patience and while the shares do look undervalued today, management needs to get the business back on track.
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Supply Challenges May Not Explain All Of Advanced Energy Industries' Weakness
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