Aixtron Shares Surge 16% Despite Lowered Sales Forecast for 2024

Aixtron Shares Surge 16% Despite Lowered Sales Forecast for 2024

Aixtron’s shares jumped 16% after a robust second-quarter order intake alleviated concerns about weak demand in the EV market, even as the company cut its annual sales forecast.

Bollywood Fever: Shares in Aixtron soared by 16% on Friday following a strong second-quarter order intake, which eased concerns over weak demand from the key electric vehicle (EV) market. This positive development came despite the German chip systems manufacturer lowering its sales forecast for the year.

Order Intake Boosts Market Confidence

Aixtron, known for supplying deposition equipment to chipmakers, announced a reduction in its annual sales outlook late Thursday, attributing it to “current market developments” and the anticipated impact of currency exchange from converting U.S. dollars into euros.

Aixtron Shares Surge 16% Despite Lowered Sales Forecast for 2024

In response to the news, Berenberg analysts noted that Aixtron’s key silicon carbide (SiC) and gallium nitride (GaN) markets are expected to remain weak in the near term. This outlook reflects the already low expectations amid the sluggish demand for EVs and negative trends in the broader power electronics industry.

“The guidance revision for 2024 is not a surprise as power semi customers have slowed down their capex expansion plans over the past few quarters,” Stifel analyst Juergen Wagner commented. Both analysts emphasized the strong preliminary order intake for the second quarter as a positive indicator, with Wagner predicting a potential stock bounce on Friday.

Impressive Quarterly Order Intake

Aixtron’s quarterly order intake was approximately 176 million euros ($190.5 million), nearly matching the 177.9 million euros from the same period last year. Notably, around 58% and 29% of these orders were from power electronics based on SiC and GaN, respectively. Wagner pointed out that this figure was 24% above the Visible Alpha consensus.

Adjusted Revenue Expectations

The company now projects its full-year revenue to be between 620 million and 660 million euros, down from the previous forecast of 630 million to 720 million euros. This adjustment reflects the ongoing market challenges and the cautious approach of its customers.

Aixtron’s recent performance, bolstered by the strong order intake, suggests resilience amid a challenging market environment. This development could provide a buffer against the uncertainties facing the power electronics and EV sectors in the near term.

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Nicholas Edwards

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