AEIS (Advanced Energy Industries, Inc): Themes, ETFs, and Basket Ideas
Last updated June 2026
Short answer
What does Advanced Energy Industries, Inc do?
Advanced Energy Industries (AEIS) designs and manufactures precision power conversion, measurement, and control systems used in demanding industrial and technology processes. Its largest end market is semiconductor manufacturing, where its plasma power supplies, matching networks, and RF generators are critical to wafer fabrication equipment used in etch and deposition steps. Advanced Energy also serves data center computing (power supplies for servers and AI infrastructure), industrial and medical applications, and telecom and networking. The company sells primarily to original equipment manufacturers (the makers of fab tools and data center systems) as well as directly to fabs and large operators. Its products are highly engineered and embedded deep in customer equipment, creating long design-win cycles and sticky relationships. Founded in 1981 and headquartered in Denver, Colorado, Advanced Energy is a mid-cap supplier whose fortunes are closely tied to the semiconductor capital equipment cycle and, increasingly, to AI data center power demand.
Where is Advanced Energy Industries, Inc heading?
1. Semiconductor process power.
Advanced Energy is a leading supplier of plasma and RF power systems used inside etch and deposition tools. As chipmakers invest in advanced nodes and new architectures, demand for precise, high-performance power delivery grows. Long design-win cycles and deep integration into customer tools make these positions difficult for competitors to displace.
2. Data center and AI power.
AI servers consume far more power than traditional compute, increasing demand for efficient, high-density power conversion. Advanced Energy supplies power solutions for data center systems, giving it exposure to the AI infrastructure buildout beyond its semiconductor roots and a second growth vector that is less tied to the fab capex cycle.
3. Diversification and margin self-help.
The company serves industrial, medical, and telecom markets that smooth semiconductor cyclicality, and it has pursued manufacturing footprint consolidation and cost actions to lift margins. Bolt-on acquisitions broaden the product portfolio and add content per tool.
Risks worth tracking: Advanced Energy is highly exposed to the semiconductor capital equipment cycle, which is volatile; downturns in fab spending hit revenue and margins hard. Customer concentration is meaningful, with a few large fab-tool OEMs representing a significant share of sales. Competition in power conversion is real, and customers can pursue in-house or alternative suppliers over time. Data center power is competitive and price-sensitive. The stock can be volatile around semiconductor capex sentiment. Execution on manufacturing consolidation and margin targets is not guaranteed, and broad macro or trade-policy shocks affecting chip equipment demand flow through quickly.
Earnings and valuation (approximate, early 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Advanced Energy Industries, Inc's investor relations page or your broker.
- Revenue (TTM): ~$1.5 billion
- Operating margin: ~10-15% (cyclical)
- Gross margin: ~high-30s percent
- Net income (TTM): ~$150 million
- P/E (TTM): ~30x (varies widely with the cycle)
- Dividend yield: ~0.5%
- Free cash flow: Positive, cyclical
- Semiconductor end-market mix: Largest single segment
Advanced Energy trades as a semiconductor-equipment-linked supplier, so its multiple expands when fab capex and AI data center power sentiment are strong and compresses in downturns. The financial profile is solid but cyclical, with margins that swing on volume. Investors weigh the secular AI power tailwind against the inherent volatility of chip capital spending.
AEIS's competitors
Semiconductor process power
Competes with MKS Instruments (a larger diversified supplier of process power, vacuum, and photonics) and other specialized RF and plasma power vendors selling into etch and deposition tools. Differentiation is on performance, integration with OEM platforms, and reliability.
Data center and industrial power
Competes broadly with power-conversion suppliers including Delta Electronics, Vicor, and other merchant power vendors serving servers and industrial systems, where efficiency, density, and cost matter most.
Using AEIS in a Walnut basket
The most useful question to ask about a single stock is rarely “will it go up?”. It's “does this fit a thesis I actually believe in, and how do I size it alongside other stocks that fit the same thesis?” That's what Walnut is built for.
Open the AI assistant on Walnut and describe a thesis (for example: “the AI infrastructure buildout”, “dividend growth large-caps”, “global semiconductors”) where AEIS would naturally fit. The AI proposes 5 to 6 constituents with target weights, you review, and you can fund the basket through your broker once you're ready.
Build a basket around AEIS with Walnut
Use Advanced Energy Industries, Inc as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is AEIS's ticker symbol?
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AEIS, listed on Nasdaq. Officially Advanced Energy Industries, Inc. Founded 1981, headquartered in Denver, Colorado. Trades during US market hours and is available at major US brokerages.
What does Advanced Energy Industries do?
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Advanced Energy designs precision power conversion, measurement, and control systems. Its largest market is semiconductor manufacturing, where its plasma and RF power supplies are used inside etch and deposition tools. It also supplies power solutions for data centers and AI servers, plus industrial, medical, and telecom applications.
Who are Advanced Energy's main competitors?
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In semiconductor process power, its closest competitor is MKS Instruments, along with other specialized RF and plasma power vendors. In data center and industrial power, it competes with merchant power-conversion suppliers like Delta Electronics and Vicor.
Is Advanced Energy a semiconductor stock?
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Largely yes. Its single largest end market is semiconductor manufacturing equipment, so its results track the chip capital spending cycle. It is best described as a semiconductor capital equipment supplier with growing data center power exposure.
Is AEIS an AI stock?
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Partly. Advanced Energy benefits from AI two ways: chipmakers investing in fabs to make AI chips buy more process tools (its core market), and AI data centers need more efficient power conversion, which it supplies. It is a power-infrastructure supplier to the AI buildout rather than a chip designer.
Why is Advanced Energy's stock cyclical?
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Because its biggest market, semiconductor equipment, swings with fab capital spending. When chipmakers expand capacity, orders surge; when they pull back, revenue and margins fall. Data center, industrial, and medical exposure smooths this somewhat but does not eliminate the cyclicality.
What is Advanced Energy's P/E ratio?
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Roughly 30x trailing twelve months as of early 2026, though the figure swings widely with the cycle because earnings rise and fall with semiconductor capex. The number is approximate and moves with the share price.
Does Advanced Energy pay a dividend?
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Yes, a modest one, with a yield around 0.5% as of early 2026. The company also returns cash through buybacks and reinvests in product development and manufacturing.
Which ETFs hold Advanced Energy?
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Semiconductor equipment and broad tech or industrial ETFs hold AEIS, typically at small weights given its mid-cap size. It appears in semiconductor-focused funds and small-to-mid-cap index funds rather than as a large position in any major fund.
Is Advanced Energy in the S&P 500?
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Advanced Energy is a member of the S&P MidCap 400 rather than the large-cap S&P 500 as of early 2026, reflecting its mid-cap market value.
Which thematic baskets typically include Advanced Energy?
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Semiconductor equipment and AI infrastructure power baskets on Walnut may include AEIS as a supplier-level holding. It tends to appear as a diversifying name alongside larger equipment makers and chip designers rather than as a core position.
Is AEIS a good stock to buy?
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Descriptive, not a recommendation. Advanced Energy offers exposure to semiconductor process power and the AI data center power buildout, with deep, sticky design wins, balanced against high cyclicality, customer concentration, and competition from larger suppliers like MKS. Whether it fits a portfolio depends on your tolerance for semiconductor-capex volatility, time horizon, and goals. Walnut is informational, not investment advice.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Advanced Energy Industries, Inc's investor relations page or your broker before making investment decisions.