Wednesday, February 23, 2022

Veeco Coming Through With Orders And Strengthening Its Enabling Tools Argument

 

Small-cap semiconductor tools company Veeco Instruments (VECO) continues to do its part, delivering better than expected revenue and order growth and strengthening its case as a supplier of important enabling tools for leading-edge semiconductor production. What’s changed since my last update is the extent to which the Street has taken notice – Veeco shares have climbed around 30% since that last article, handily beating larger tool companies like ASML (ASML), Applied Materials (AMAT), and Lam Research (LRCX).

I continue to like where Veeco is positioned. The company is gaining traction with its laser spike annealing (or LSA) tools and could see further adoption in memory chip production, and the company is likewise well-positioned with its ion beam and MOCVD tools in other growth markets. Valuation isn’t quite as compelling as it was 30% ago, but I still see double-digit annualized return potential here and the possibility of further positive revisions to guidance/expectations.

 

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Veeco Coming Through With Orders And Strengthening Its Enabling Tools Argument

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