VACNY - Supply Challenges May Not Explain All Of Advanced Energy Industries' Weakness

• Advanced Energy Industries posted another weaker-than-expected quarter and once again guided lower for the next quarter, with supply challenges cited as the driving issue.
• AEIS seems to be underperforming other semiconductor equipment component companies, including players in semi-power, and other companies seem to be managing the supply/sourcing challenges better.
• Management referred to a strong order book in both the semiconductor and industrial/medical businesses, and management will have to deliver stronger results in 2022.
• Upside could be limited until 2022, but the shares do look undervalued provided that long-term revenue growth of 5% to 6% is still a valid assumption.

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