This Top Chip-Gear Stock Has Positive Catalysts Ahead, Citi Says

Investment bank Citi has opened a 90-day positive catalyst watch on Advanced Energy Industries (AEIS) and raised its price target on the semiconductor equipment vendor. But AEIS stock dipped early Friday.

Citi analyst Elizabeth Sun raised her price target on AEIS stock to 385 from 330 and reiterated her buy rating.

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In premarket trades on the stock market today, AEIS stock slid a fraction to 325.35. Year to date through Thursday’s close, it is up 57%. Over the past year, the stock has risen 211%.

“AEIS is benefiting from rapid data center build‑outs and rising power density,” Sun said in a client note Thursday. The company’s first-quarter earnings report should be a positive catalyst for Advanced Energy, she said.

Sun said she expects Advanced Energy to increase its 2026 outlook as wafer fab equipment and data center spending move higher. The company is well-positioned to benefit from the chip-gear spending cycle, she said.

The Denver-based company has not yet set a date for its Q1 earnings release.

AEIS stock hit a record high of 350 on March 2, three weeks after it delivered a beat-and-raise fourth-quarter earnings report.

Advanced Energy makes precision power conversion, measurement and control solutions for such industries as semiconductor equipment, industrial production, medical and life sciences, data center computing, networking, and telecommunications.

AEIS Stock Is On Tech Leaders List

AEIS stock has an IBD Composite Rating of 98 out of 99, according to IBD Stock Checkup. IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.

Sun also reiterated her buy rating on industry peer MKS (MKSI), through she trimmed her price target to 290 from 295. MKS stock was down more than 1% to 232.80 in early trades on Friday.

AEIS stock and MKS are both on the IBD Tech Leaders list.

Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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