FRANKFURT (dpa-AFX) - A buy recommendation from investment bank Jefferies propelled Aixtron shares to €23.15 on Tuesday, their highest level since May 2024. The stock surged nearly 10 percent, expanding its year-to-date gain to one third.
Analyst Om Bakhda, in his recommendation, described the chip equipment supplier as an underestimated AI stock poised for acceleration. He significantly raised his price target to €27, signaling almost 17 percent upside from current levels.
Rising investments by major AI companies in their cloud services, along with signals that network firms are bringing forward their spending plans, have strengthened Aixtron's revenue outlook in optoelectronics for 2026 and 2027, according to the expert.
Recently, Amazon, Alphabet, Meta, and Microsoft all raised their investment plans for 2026 to breathtaking heights—with Amazon leading the way at a total of around $200 billion.
In addition, Bakhda points to the already compelling medium-term narrative for GaN power electronics and sees fewer risks in the silicon carbide segment. Overall, Bakhda believes there is a strong case for a revaluation of the stock.
With this price jump, Aixtron shares have resumed the rally that began at the end of October, following a brief consolidation. Since then, the stock has gained around 80 percent. Even back then, after a lean period, analysts had spotted signs of a business revival and highlighted significant AI potential. Investment firm Kerrisdale Capital wrote in early November that Aixtron was the next big bet in AI and data centers and likely the most underestimated AI beneficiary in the industry.
The main focus is on the long-term business potential from new energy architectures for power-hungry AI data centers. These require electronic chips produced with Aixtron equipment. Specifically, it's about the introduction of new 800-volt architectures, which require both gallium nitride (GaN) and silicon carbide chips. These are more efficient than conventional silicon chips./ag/mis/jha/
