TOELY - Hit By A SiC Spending Air Pocket AIXTRON Could Be Worth A Look Now
2024-06-07 14:33:22 ET
Summary
- AIXTRON has been underperforming compared to many larger semiconductor equipment companies due to a downturn in the electric vehicle market and concerns of a silicon carbide (SiC) glut.
- A supply/demand imbalance in SiC could linger into 2025, but the long-term demand outlook remains strong and AIXTRON is a leading supplier to SiC semiconductor companies.
- Tools for GaN chips remain an underappreciated medium-to-long-term driver for AIXTRON tool demand and microLED tool demand could surprise for good.
- AIXTRON shares have been knocked back by this reset in the SiC market, but even at a discount to historical valuation multiples, the shares offer upside on an eventual SiC tools demand rebound.
When it comes to semiconductor production equipment (or SPE) companies/stocks like AIXTRON ( OTCPK:AIXXF ), selloffs prompted by cyclical weakness in semiconductor tool demand are about as rare as Tuesday following Monday. Still, when you’re talking about a smaller, more specialized company, it’s easier to see sharper moves and it’s also worth paying attention whenever a company seems to be diverging meaningfully from its peer group....
Hit By A SiC Spending "Air Pocket", AIXTRON Could Be Worth A Look Now