Advanced Energy Industries Touts Data Center Growth, Sees 2026 Semi Upswing at Needham Conference

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MarketBeat

Wed, January 14, 2026 astatine 10:08 AM CST 9 min read

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Advanced Energy is astir 42% semiconductor instrumentality and 37% AI/data halfway by gross and says it has “high confidence” successful its 2026 information halfway forecast based connected 2025 plan wins, with added capableness successful the Philippines and Mexicali and a Thailand mill ready; 800V merchandise gross is not expected until astir 2027, ramping much successful 2028–29.
Management says information halfway margins person improved from the “teens” toward the firm mean and it aims to prolong that level, but a analyzable tariff authorities is simply a astir 100 ground point headwind to gross margin—without tariffs the institution would beryllium supra 40% gross margin.
AEIS expects 2026 to beryllium a semiconductor-equipment maturation twelvemonth driven by DRAM and leading-edge logic, and its caller products (Everest, eVoS, NavX) are forecast to present $10–20 million successful 2025 with accelerated contributions successful 2026–28 and much important interaction successful 2027–28.
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Advanced Energy Industries (NASDAQ:AEIS) absorption utilized a presumption astatine the 28th Annual Needham Growth Conference to outline the company’s end-market mix, expectations for its information halfway business, and the drivers it sees for betterment successful some semiconductor instrumentality request and profitability implicit time. President and CEO Steve Kelley and Executive Vice President and CFO Paul Oldham participated successful the discussion. Oldham besides noted the company’s past net guidance was provided connected Nov. 4 and said nary updates would beryllium provided astatine the conference.

Kelley framed the institution arsenic selling into “high-end powerfulness delivery” markets, with roots successful semiconductor instrumentality and diversification into information center, industrial, and medical. Using the 3rd 4th arsenic a notation point, Kelley said Advanced Energy’s gross was approximately:

42% semiconductor equipment
37% AI information halfway / information center
The equilibrium crossed industrial, medical, telecom, and networking

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He added that Applied Materials and Lam Research are the company’s 2 largest customers connected the semiconductor instrumentality side.

Discussion centered connected the company’s assurance successful its longer-range presumption of information halfway growth. Kelley said the AI information halfway marketplace differs from accepted information halfway request due to the fact that of the gait of change, with caller GPUs and silicon driving higher powerfulness requirements annually. That pace, helium said, requires Advanced Energy to present caller products each twelvemonth and prosecute aboriginal with customers.