Investor sentiment for the chip space may not be what it was, but the reality is that fabs are still looking to spend large sums to increase capacity, particularly at leading-edge nodes. Moreover, Veeco continues to have attractive leverage to emerging opportunities like extreme ultraviolet (or EUV) lithography, multiple gallium-based substrates, and advanced tool/technology adoption in areas like microLEDs, power semis, and storage.
I'm a little less bullish on the near-term margin outlook for Veeco given supply-chain and mix pressures, and that does take a toll on my cash flow-based and margin-based fair value estimates, but I think the overall outlook for this under-followed equipment supplier is still positive and it's a name worth considering.
Read the full article at Seeking Alpha:
Amidst Industry Turbulence, Veeco Instruments Still Seeing Solid Demand
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