Advanced Energy Industries (AEIS) grew third-quarter revenue 50% to about $696 million, more than doubled GAAP EPS to $2.80, and shares rose about 10% in early after-hours trading. GAAP operating margin rose to 20.6% from 10.6% a year earlier, as operating expenses rose only 17%, and semiconductor equipment revenue reached $322 million, up 64%. Data center computing revenue rose 49%, and both growth drivers depend on AI spending, which makes the growth concentrated. Inventory has jumped 57% since December as the company builds for demand and ramps its Thailand factory, and operating cash flow covered only a little more than half of net income this quarter. Fourth-quarter revenue guidance is $710 million to $760 million.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
semiconductorsdata centersAI investmentearnings
Open a keyword to see other news on the same topic.
Related news
- 5 AI Infrastructure Stocks to Buy and Hold Through 2030
The article highlights five companies across different layers of AI infrastructure: Marvell (MRVL), AMD, Forgent Power Solutions (FPS), Oracle (ORCL) and Brookfield (BN). Marvell's data center revenue rose 46% and made up 79% of sales, with the stock trading at about 30 times forward earnings, while AMD's revenue grew 50% and its stock trades at about 42 times forward earnings. Forgent's $3 billion backlog covers more than 90% of expected next-year revenue, and Oracle's remaining performance obligations total $664 billion with its stock at about 14 times forward earnings. Brookfield is planning a $100 billion AI data center campus in Kentucky with NextEra Energy. The author says he spreads his AI investments across these different parts of the build-out to reduce the risk that hyperscaler AI spending slows.
- Microsoft Just Announced Incredible News for Nvidia Shareholders
Microsoft's fiscal 2027 first-quarter report showed that about 75% of its capital expenditure went to short-lived assets, mainly CPUs and GPUs, which the article says points to significant growth for Nvidia as a supplier. Microsoft expects capex to accelerate in the second half, again driven by CPUs and GPUs, and forecasts $170 billion in capex for the calendar year. The article says this spending reflects demand already in place rather than speculative build-out. Nvidia stock rose more than 1,100% over the past three calendar years but is up only 15% this year, while data center sales make up 92% of its total sales. The author argues the underlying picture remains strong despite investor concerns about AI spending.
- NVDA Stock Drops: Nvidia May Back Data Center Loan Its Own Customer, Analyst Sees Little Impact From Intel’s Weak Report
Nvidia shares fell 2% in overnight trading amid a broad selloff in AI infrastructure stocks, following mixed reports from Intel and Amazon. Bloomberg reported that Nvidia is in talks to provide credit support for an Nscale data center in West Virginia that Anthropic plans to use, while Nscale is pursuing an IPO with a $30 billion target that some investors have pushed back on. Intel plunged 23% after forecasting December-quarter sales and profit below expectations, while AMD fell 6.4% and Micron 3.4%. Deepwater Asset Management's Gene Munster said Intel's weak outlook should not be extrapolated to Nvidia, as the main issue is PC demand, and noted that Meta and Alphabet expect significantly higher capex. Nvidia stock is up 15% year to date.
- 3 AI Infrastructure Stocks To Watch As Nvidia Spending Reshapes Data Center Funding
The article opens with SpaceX committing up to $40 billion of callable debt to buy Nvidia GPUs, while saying funding has "almost entirely" dried up for less established data center players. It highlights Samsung Electronics, Delta Electronics and SK hynix, which supply memory chips, power and cooling systems, and HBM for AI data centers. Samsung generates most revenue from Device Solutions at ₩286.4 trillion and has a market cap of ₩1,359.8 trillion, but its stock fell around 32% from its peak due to recurring margin calls and KRW instability. Delta Electronics has a market cap of NT$4,052.2 billion, and server power and cooling products recently accounted for more than 30% of its revenue, while SK hynix, valued at ₩929.3 trillion, cites management's outlook for DRAM demand growth of over 20% in 2026. The article also flags that slower AI infrastructure spending could affect pricing and margins.
- Nvidia CEO Jensen Huang Reaffirms His $4 Trillion Projection for AI Spending. Here's Why That Makes Nvidia a Screaming Buy Now.
Nvidia CEO Jensen Huang reaffirmed his projection that global data center capital expenditure could reach up to $4 trillion annually by 2030, with a floor of $3 trillion. The big five AI hyperscalers alone are expected to spend nearly $800 billion this year, and the author estimates total data center capex at around $1 trillion this year. If the market triples to quadruples by 2030 and Nvidia keeps its market share, its revenue could reach $1.2 to $1.6 trillion, starting from analysts' estimate of $412 billion for this year. At a 50% profit margin and 30 times earnings, its market cap could be $18 to $24 trillion, versus about $5.4 trillion now; the author stresses this is not a forecast of such growth and calls Nvidia one of the most attractive stocks in the market right now.
- Nvidia and 3 AI Infrastructure Stocks Backed by Hyperscaler Data Center Spending
The article argues that AI data centers are drawing heavy capital, with Nvidia and Broadcom already reporting triple-digit gains in data center and AI chip revenue. It highlights Marvell Technology, which designs integrated circuits for cloud and AI infrastructure, generating about US$9.5b a year with a market value near US$196b; NVIDIA made a US$2B equity investment in Marvell on March 31, 2026 via NVLink Fusion. Lumentum Holdings supplies optical hardware linking AI data center clusters, with its Integrated Enterprise segment generating about US$3.0b in revenue and the business valued near US$68.2b. Quanta Computer builds cloud servers for hyperscalers, with its electronics division posting about NT$6,197.5b in segment revenue and the group valued around NT$1,241.2b; the article notes that ramping the next-generation GB300 AI server platform is expected to accelerate AI server shipments in late 2025 and 2026.
Related markets
Latest news
- Stock Market Today, Nov. 2: Rivian Rallies on UBS Upgrade and Solid R2 Demand Outlook
Rivian Automotive (RIVN) closed up 8.47% at $13.19 on Nov. 2, with trading volume of 64.3 million shares, about 165% above its three-month average of 24.3 million. UBS upgraded the stock to Buy from Neutral/Hold, kept its $17 target, and said the recent sell-off was overdone ahead of the R2 ramp, also expecting solid early R2 demand and a positive automotive gross margin percentage as Rivian exits 2026. Rivian's third-quarter revenue rose 38% year over year to $2.2 billion, with gross profit of $176 million, up $152 million, and the budget R2 became its best-selling vehicle by volume in the quarter. Its Volkswagen joint venture received a $1 billion term loan in October. The same day, the S&P 500 fell 0.50% to 7,542 and the Nasdaq Composite dropped 1.07% to 25,164, while Rivian has fallen 87% since its 2021 IPO.
- Apple posts stronger-than-expected Q4 revenue in first earnings report for new CEO John Ternus
Apple reported fiscal fourth-quarter revenue above expectations, giving new CEO John Ternus, whose tenure began in September, a positive start, while several tech peers including Alphabet, Amazon and Intel posted disappointing results. The company earned $30.71 billion, or $2.10 per share, in the July–September period, up 12% from $27.47 billion, or $1.85 per share, a year earlier, including 5 cents per share from tariff refunds. Revenue rose 12% to $114.5 billion from $102.5 billion, beating analysts' average forecast of $1.99 per share on $113.4 billion in revenue, according to FactSet. Emarketer analyst Jacob Bourne said record iPhone revenue and strong growth in China show the resilience of Apple's business, and that its cautious approach to AI infrastructure spending helps preserve cash flow, while partnerships with Alphabet could strengthen its AI capabilities without the same financial risks as peers. Shares were flat in after-hours trading, after closing down 1.8% at $338.32 in regular trading.
- Why Franklin Electric Stock Raced 5% Higher on Monday
Franklin Electric (FELE) shares rose more than 5% on Monday after DA Davidson analyst Matt Summerville upgraded the stock to Buy from Neutral and raised his price target to $135 from $105. Summerville pointed to the company's growing exposure to high-growth areas, including new products for data center infrastructure and critical minerals, and said its distribution business could lift segment margins and revenue growth. He also highlighted Franklin's relatively clean balance sheet. The author agrees the company is an under-the-radar beneficiary of hot industries, but notes that its core markets, which make up most of its business, remain vulnerable to rising interest rates and construction-industry downcycles.
- Micron Technology: Is This a Sign That Its Stock Has Already Peaked?
Micron Technology (MU) shares fell 5.78%, after an earlier rally driven by strong memory demand and the company's ability to raise prices; the stock crossed a $1 trillion market cap earlier this year but now trades near $940 billion. Its 30-day average trading volume has fallen significantly since peaking around late June, which the author cites as a sign that interest in the stock has faded. The stock's earnings multiple of 11 looks low, but the author argues it is skewed by very strong recent results, and that more supply could come online sooner than expected. With the stock up more than 1,000% over five years, some investors may simply want to cash out before it's too late, and the author says he would not buy Micron at this stage given the risks of cyclical stocks.
- Apple Q4 earnings call: Ternus breaks down 'excellent quarter'
Apple CEO John Ternus said total company revenue set records for the September quarter and the full fiscal year. iPhone revenue reached $57.6 billion, up 17% from a year earlier despite supply constraints and foreign exchange headwinds, marking a September-quarter record and the company's best fiscal year ever for iPhone. Services, Apple's second-largest segment, posted an all-time record in the quarter and closed out its best year ever. Apple grew in most of the markets it tracks, setting September-quarter records in the Americas, Europe, Greater China and the rest of Asia Pacific, along with an all-time record in India, and it also set a record for upgraders worldwide.
- Why Wingstop Stock Keeps Going Up
Wingstop shares (WING) rose nearly 9% on Monday, extending their post-earnings gains after the company reported third-quarter results on Oct. 28. Revenue rose 5.3% year over year to $185 million on new store openings, with 76 net new stores bringing the total to 3,331 locations as of Sept. 26, including 2,787 in the U.S. and 544 franchised international locations. However, domestic same-store sales fell 5.4% as consumers pulled back on dining out amid rising gas prices and other costs, and the company lowered its full-year same-store sales forecast to a decline of 6.5% to 7%. Adjusted net income was $29.3 million, or $1.08 per share, above Wall Street's estimate of $1.02. CEO Michael Skipworth said the Club Wingstop loyalty program is helping to draw guests back, and the company plans to open as many as 450 net stores in 2026 while working toward more than 10,000 restaurants globally.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.