VECO - Growing Leading-Edge Opportunities Driving Gains At Veeco
2024-06-06 12:40:14 ET
Summary
- Veeco Instruments has performed fairly well, but still offers the potential for significant revenue growth in leading-edge tools for semiconductor manufacturing.
- The company's prime opportunities lie in nanosecond annealing and ion beam deposition for low resistance metals, both of which are likely to become more important in next-gen chip production.
- Veeco's strong market share in laser spike annealing and its experience in IBD tools for EUV mask blanks position it well for success in these new markets.
- Older growth opportunities like GaN-on-silicon, silicon carbide epitaxy, photonics, and HAMR in data storage are still valid and contribute to an attractive multiyear revenue growth opportunity.
- Multiples have expanded noticeably among tool manufacturers, Veeco included, but there's still upside as Veeco looks to secure commercial orders for new tools in 2025 and beyond.
Following Veeco Instruments ( VECO ) has admittedly been a frustrating exercise at times, as the Street has often overlooked this small player in leading-edge tools for semiconductor manufacturing. Since my last update , the shares have risen about 65%, which isn’t bad compared to Applied Materials ( AMAT ), AIXTRON (AIXXY), or the broader semiconductor space, but does still lag the likes of ASM International ( OTCQX:ASMIY ) and Screen Holdings ( OTCPK:DINRF )....
Growing Leading-Edge Opportunities Driving Gains At Veeco