At a glance
Advanced Energy Industries Inc is worth $9.81B, about 63 times its fiscal 2025 earnings. Revenue grew 21.4% to $1.80B in fiscal 2025, with 8.2% kept as profit; over 5 years it has grown 4.9% a year. It pays a 0.17% dividend yield, and returned $253.5M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +18.6% over the past year with dividends reinvested and +22.0% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 50.0% in the 2020 crash (S&P 500: 33.7%) and 26.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 4 months after the lows.
The business in plain English
Advanced Energy Industries designs, makes and services precision power equipment. Its products take raw electricity from the utility or a building and convert it into tightly controlled power that complex machines need to run predictably. Its plasma power products energize the electrically charged gas that chipmaking tools use to carve and layer materials on silicon wafers. It also offers high- and low-voltage power supplies, sensors and instruments that measure power and temperature, and repair, calibration and upgrade services. The company is based in Denver.
Customers are original equipment manufacturers (OEMs, the firms that build the finished machines), distributors and end users. The company reports as a single business segment but splits revenue into four markets. In the fiscal year ended December 31, 2025, revenue was $1.80 billion. Semiconductor equipment brought in $840 million (47%), data center computing $587 million (33%), industrial and medical $282 million (16%), and telecom and networking $89 million (5%). Power-hungry AI server racks drive much of the data center business.
Sales are concentrated: three customers made up 23%, 19% and 12% of 2025 revenue. By geography, the US accounted for 30%, Mexico 14%, Japan 12% and Taiwan 7%, with other countries making up the remaining 37%. Factories are mainly in the Philippines, Malaysia and Mexico.
Price history
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AEIS +18.6% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Semiconductor Equipment | $839.9M | 46.7% |
| Data Center Computing | $587.3M | 32.6% |
| Industrial And Medical | $282.3M | 15.7% |
| Telecom And Networking | $89.3M | 5% |
By geography
| Other Countries | $656.2M | 36.5% |
| US | $541.4M | 30.1% |
| MX | $252.8M | 14.1% |
| JP | $218.2M | 12.1% |
| TW | $130.2M | 7.2% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $696.4M, up 50.3% from a year earlier, and net income was $115.6M (+150.2%).
- For fiscal 2025, revenue was $1.80B (+21.4% year over year; +4.9% a year from FY2020 to FY2025) with a 8.2% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +4.9% watch |
|---|---|
| Operating margin | 9.3% watch |
| Free cash flow margin | 7% watch |
| Return on equity (FY2025) | 10.9% watch |
| Return on assets (FY2025) | 5.8% watch |
| Net cash (cash minus debt) | $158.7M good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $1.42B | $134.7M | $164.9M |
| FY2021 | $1.46B | $134.7M | $111.4M |
| FY2022 | $1.85B | $199.7M | $124.7M |
| FY2023 | $1.66B | $128.3M | $147.9M |
| FY2024 | $1.48B | $54.2M | $74.0M |
| FY2025 | $1.80B | $148.4M | $125.9M |
Valuation snapshot
| Market value | $9.81B |
|---|---|
| P/E ratio | 63.1 |
| Dividend yield | 0.17% |
Rank among 1514 US companies
Market value at each year end
Advanced Energy Industries’s market value went from $2.17B at the end of 2016 to $9.81B on Oct 28, 2026, about 4.5 times as much; since the end of 2025 it is up 24%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $9.81B | +24.1% |
| 2025 | $7.90B | +81.4% |
| 2024 | $4.36B | +7.3% |
| 2023 | $4.06B | +26.6% |
| 2022 | $3.21B | -6.5% |
| 2021 | $3.43B | -7.6% |
| 2020 | $3.71B | +36.0% |
| 2019 | $2.73B | +65.2% |
| 2018 | $1.65B | -38.3% |
| 2017 | $2.68B | +23.2% |
| 2016 | $2.17B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| AEIS price data to Oct 28, 2026 | +15.9% | +18.6% | +40.7% | +22.0% | +18.0% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +15.8% |
| 2025 | +81.6% |
| 2024 | +6.5% |
| 2023 | +27.5% |
| 2022 | -5.4% |
| 2021 | -5.7% |
| 2020 | +36.2% |
| 2019 | +65.8% |
| 2018 | -36.4% |
| 2017 | +23.3% |
| 2016 | +93.9% |
| 2015 | +19.1% |
| 2014 | +3.7% |
| 2013 | +65.5% |
| 2012 | +28.7% |
| 2011 | -21.3% |
| 2010 | -9.6% |
| 2009 | +51.6% |
| 2008 | -23.9% |
| 2007 | -30.7% |
| 2006 | +59.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 66.9% over that stretch · deepest drop along the way 67.4%, back to its old high 13.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 45.7% over that stretch · deepest drop along the way 50%, back to its old high 2.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 22.5% over that stretch · deepest drop along the way 26.7%, back to its old high 3.7 months after the low |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (25 read): 0 open-market purchases and 25 sales ($9.3M), 25 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 18, 2026 | Eduardo Bernal Acebedo EVP and COO | sell (plan) | $1.6M |
| Aug 18, 2026 | Eduardo Bernal Acebedo EVP and COO | sell (plan) | $1.2M |
| Aug 18, 2026 | Eduardo Bernal Acebedo EVP and COO | sell (plan) | $977K |
| Aug 18, 2026 | Eduardo Bernal Acebedo EVP and COO | sell (plan) | $920K |
| Aug 18, 2026 | Eduardo Bernal Acebedo EVP and COO | sell (plan) | $688K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 9.9% | Jun 30, 2026 |
| Vanguard Portfolio Management | 6.21% | Mar 31, 2026 |
| Vanguard Capital Management | 5.23% | Mar 31, 2026 |
| Ameriprise Financial, Inc. | 4.8% | Sep 30, 2025 |
| FMR LLC | 3.8% | Jun 30, 2026 |
| BlackRock Portfolio Management LLC | 2.3% | Jun 30, 2026 |
ETFs with the most weight in AEIS
| PSCT Invesco S&P SmallCap Information Technology ETF | 2.55% |
| QCLN First Trust NASDAQ Clean Edge Green Energy Index Fund | 2.48% |
| FFSM Fidelity Fundamental Small-Mid Cap ETF | 0.68% |
| GSC Goldman Sachs Small Cap Core Equity ETF | 0.66% |
| HAPS Harbor Human Capital Factor US Small Cap ETF | 0.62% |
| QSML WisdomTree U.S. SmallCap Quality Growth Fund | 0.54% |
| OASC OneAscent Small Cap Core ETF | 0.54% |
| QQQS Invesco NASDAQ Future Gen 200 ETF | 0.48% |
What could go wrong
- Over half of revenue from three customers. Three customers made up 23%, 19% and 12% of 2025 revenue. Losing one, or a sharp cut in its orders, could hit sales and profits. Unpaid bills are also concentrated among them.
- AI data center demand may not last. The company sped up spending on factory capacity to meet AI-driven data center demand. If it cannot scale fast enough, or has misjudged how large or lasting that demand is, results could suffer.
- Needs design wins to keep customers. A "design win" means a customer builds the company's product into new equipment with a lifespan of many years. Design windows are narrow and competitive, and a win may not bring substantial revenue.
- Chip equipment spending moves in cycles. Semiconductor equipment supplied 47% of 2025 revenue, and that market is highly cyclical. Downturns bring weak orders, excess inventory and price cuts. Total revenue fell from $1.85 billion in 2022 to $1.48 billion in 2024.
- Trade rules and overseas factories. Tariffs and tighter trade rules have already hurt the business. Most manufacturing happens in the Philippines, Malaysia and Mexico, and political or economic shifts in Asia could cut revenue with little warning.
- Convertible notes could dilute shareholders. The company owes 2.50% convertible notes, bonds that can turn into shares, due September 2028. Conversion could shrink existing owners' stakes, and the notes and related hedges may weigh on the share price.
Recent events
- Quarterly results released
- Quarterly results released
- Other company announcement
- Major agreement signed; New debt or financial obligation; Unregistered sale of shares
- Other company announcement
- Executive or board change; Bylaws or fiscal year changed; Shareholder vote results
- Quarterly results released
- Quarterly results released
- Quarterly results released
For income and retirement investors
Advanced Energy pays a dividend, but it is small and flat. The per-share dividend held at $0.10 from 2021 through 2025 with no increases, and the yield was 0.17% as of October 28, 2026. In 2025 the dividend used 10.5% of earnings and 12.4% of free cash flow (cash left after running the business and investing in it). Share repurchases totaled $177 million from 2021 to 2025, more than twice the $77 million paid in dividends, yet the share count rose 4.4% between July 2021 and July 2026. For income investors, the stock provides almost no cash, so spending money would have to come from trimming shares.
The share price swings sharply. The shares fell 67% in the 2008 financial crisis and took about 13 months to recover, dropped 50% in the 2020 COVID crash, and lost 27% in the 2022 bear market. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Advanced Energy make money?
Advanced Energy makes money by designing, manufacturing and servicing precision power equipment that turns raw electricity into tightly controlled power for complex machines. In the fiscal year ended December 31, 2025, revenue was $1.80 billion: semiconductor equipment 47%, data center computing 33%, industrial and medical 16%, and telecom and networking 5%. Its customers are mainly equipment makers and distributors, and three of them accounted for 23%, 19% and 12% of revenue. It also earns revenue from repair, calibration and upgrade services.
Does Advanced Energy (AEIS) pay a dividend?
Yes, but it is small and has not grown. The per-share dividend held at $0.10 from 2021 through 2025, and the yield was 0.17% as of October 28, 2026. The 2025 dividend used just 10.5% of earnings and 12.4% of free cash flow. From 2021 to 2025 the company spent $177 million on share repurchases, more than twice the $77 million paid in dividends. Its annual report also warns that it may not pay dividends.
How much of Advanced Energy's business comes from AI?
AI matters a great deal, mainly through data center computing. That market, driven by power-hungry AI server racks, brought in $587 million, or 33% of 2025 revenue. AI is also one of the trends behind chip demand, which feeds the semiconductor equipment business, at 47% of revenue. Total revenue grew 21.4% in 2025 and 30% from a year earlier in the quarter ended June 30, 2026. The company warns it may misjudge how large or lasting AI demand will be.
Is AEIS stock expensive?
Measured by earnings, the shares are priced for strong growth. As of October 28, 2026, AEIS traded at about 63 times its 2025 earnings of $3.84 per share, with a market value of about $9.7 billion. The price-to-earnings (P/E) ratio compares the share price with profit per share; a high one leaves less room for disappointment. The shares had fallen 34.3% over the previous six months but were still up 18.6% over one year.
Does Advanced Energy have a lot of debt?
Debt is sizable, but cash slightly exceeds it. As of June 30, 2026, cash and investments of $1.40 billion exceeded total debt of $1.26 billion, leaving net cash of about $132 million. The 2025 annual report describes 2.50% convertible notes due September 15, 2028, which can turn into shares, plus a term loan and credit line maturing May 8, 2030. A May 18, 2026 filing reported a new debt obligation. Loan agreements include covenants, rules that can limit how the company operates.