For its development potential in the silicon carbide and electric vehicle businesses, semiconductor ion implant equipment manufacturer Axcelis Technologies (NASDAQ: ACLS) has garnered attention in recent years. As those two growth engines slow, its stock has fallen roughly 20% this year.
Does that downturn provide patient investors a buying opportunity? For its 12-month stock forecast, let's examine its company model, growth rates, and valuations.
Axcelis' ion implantation technologies implant elemental ions into other materials. Silicon is used to make all semiconductors, but Axcelis' devices can implant carbon ions into silicon to make silicon carbide (SiC), which can work at greater voltages, temperatures, and frequencies.
SiC chips are suitable for short-length LEDs, lasers, 5G base stations, military radars, and electric cars due to their durability. Electric vehicles have powered most of the SiC market's growth, but high loan rates, supply chain issues, and other macro challenges have plagued many EV makers over the past year.
SiC revenue accounted for 34% of Axcelis' system revenue in 2023. The rest came from DRAM, NAND, image sensor, and other silicon chip systems. China supplied 46% of its system income.
How quickly is Axcelis growing? Axcelis' revenue grew 33.5% and EPS 72% from 2020 to 2023. It benefited from the SiC market's growth, the memory chip market's cyclical recovery, and the 5G, data analytics, and AI markets. Due to EV market cooling, memory chip market slowdown, and Chinese macro headwinds, its growth slowed last year. Revenue climbed 23% in 2023, compared to 39% in 2022.
Axcelis' ion implantation technologies implant elemental ions into other materials. Silicon is used to make all semiconductors, but Axcelis' devices can implant carbon ions into silicon to make silicon carbide (SiC), which can work at greater voltages, temperatures, and frequencies.
SiC chips are suitable for short-length LEDs, lasers, 5G base stations, military radars, and electric cars due to their durability. Electric vehicles have powered most of the SiC market's growth, but high loan rates, supply chain issues, and other macro challenges have plagued many EV makers over the past year.
SiC revenue accounted for 34% of Axcelis' system revenue in 2023. The rest came from DRAM, NAND, image sensor, and other silicon chip systems. China supplied 46% of its system income.
How quickly is Axcelis growing? Axcelis' revenue grew 33.5% and EPS 72% from 2020 to 2023. It benefited from the SiC market's growth, the memory chip market's cyclical recovery, and the 5G, data analytics, and AI markets. Due to EV market cooling, memory chip market slowdown, and Chinese macro headwinds, its growth slowed last year. Revenue climbed 23% in 2023, compared to 39% in 2022.
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