AEIS: Adding AEIS to 3Q26 Tactical Ideas List; Upgrade to OW

Research evidence excerpt

AEIS: Adding AEIS to 3Q26 Tactical Ideas List; Upgrade to OW

Equity Research

Rating Change — July 1, 2026

Semiconductor Capital Equipment

Advanced Energy Industries, Inc.

Adding AEIS to 3Q26 Tactical Ideas List; Upgrade to OW Overweight

Price Target: $465.00

Notable Changes

Our Call $ (Dec) Current Prior % Chg

We view recent share underperformance (+16% in 2Q26 vs. peers +93%; SOX +88%) as Rating OW EW

a buying oppy. We expect AE's 2Q26 results to highlight accelerating semi & data center Price Target $465.00 $345.00 34.8%

demand. We upgrade AE to OW and raise PT to $465 (from $345). EPS 2026 9.78 9.27 5.5%

EPS 2027 12.95 11.15 16.1%

We are adding AEIS to the C3Q26 tactical ideas list and view recent share Rev. (MM) 2026 2.30B 2.24B 2.6%

underperformance as a buying opportunity. We expect 2Q26 results to highlight: 1)

Rev. (MM) 2027 2.84B 2.61B 8.5%

Accelerating semi-related demand & raised 2026 outlook; 2) re-accelerating data center

demand post-2Q26 pause w/ support for >40% y/y growth in 2026. We raise ests to

above consensus and expect AE to raise 2026 semi & data center growth expectations. Ticker AEIS

We increase our PT to $465 (was $345) based on 32x P/E & 22x EV/EBITDA our C2028E. Upside/(Downside) to Target 24.7%

Price (06/30/2026) $372.87

Key 3Q26 Catalysts: 52 Week Range $133.59 - 389.05

Market Cap (MM) $15,735

• Semiconductor Upside: We expect AE to deliver positive upside in its semi business Enterprise Value (MM) $15,866

for 2Q26 (vs. Street’s +14% q/q; guide +DD% q/q). With continually improving demand

visibility, we expect the company to raise its 2026 rev growth outlook from an implied Average Daily Value (MM) $335

up low-20% y/y range to high-20% to 30% y/y; we est. AMAT / LRCX systems up Dividend Yield 0.1%

mid-30s% in C2026.