Aixtron Stock: Strong Rally at Year-End

Last Updated: 30. November 2023By

The Aixtron stock has had turbulent weeks behind it – after the crash in October, there was recently a rally with a price increase of almost 28 percent in 4 weeks. Since the beginning of the year, the paper of the special machine builder for the semiconductor industry is now more than 20 percent higher again (as of November 30, around 9.30 am).

The strong growth in the 3rd quarter as well as the booming demand for modern chips based on silicon carbide (SiC) and gallium nitride (GaN) speak for themselves. Investors should always expect setbacks, but in the medium term the prospects for the Aixtron stock are still very good.

Aixtron with growth dynamics and reduced order intake in the 3rd quarter Already the half-year figures, which Aixtron greeted with an increased forecast, could convince. Afterwards, the growth dynamics continued at an even higher pace: sales in the 3rd quarter increased by 86 percent to 165 million euros and the EBIT margin rose from 18 percent in Q3 of 2022 to 27 percent.

Aixtron sticks to the targets raised in the summer: sales should be between 600 and 660 million euros, the EBIT margin between 25 and 27 percent. In view of the latest figures from the end of October, Aixtron still has to make considerable gains in the current Q4. After 9 months of the year, sales amounted to around 416 million euros, the EBIT margin to 22 percent.

Above all, with regard to order intake, the forecast for 2023 could become tight: Aixtron is planning an volume of new orders between 620 and 700 million euros – so far it is only „only“ 436 million euros after 9 months. In the 3rd quarter, order intake was even down to 118.5 million euros.

Aixtron stock: medium-term there are still opportunities here The lower order intake is of course not a disaster, but should be kept in mind by investors. On the one hand, Aixtron has to reach the ambitious annual targets in the best possible way in order not to lose any trust. On the other hand, the order intake of today is the growth of tomorrow.

The Aixtron stock could only be briefly burdened with that, in the last few weeks the paper has started into a real November rally. In the current market environment, the chances of a continuation of the year-end rally are not bad, the all-time high from the summer is now within reach again.

In the medium and long term, the Aixtron stock still has more potential: the company has specialized in machines and systems for innovative chips made of silicon carbide and gallium nitride for the semiconductor industry and the global demand is unbroken high. The chips are used, among other things, in electric cars.