When it comes to media and investor attention, semiconductor stocks are among some of the hottest right now. This is because of artificial intelligence, and the expected shift to accelerated computing for businesses and consumers. The PHLX Semiconductor (SOX) index has gained more than 50% between May 2023 and 2024, and some individual stocks have fared even better. In this article, we will take a look at Axcelis Technologies, Inc. (NASDAQ:ACLS), which is one of 13 high growth semiconductor stocks that are profitable in 2024.
Axcelis Technologies, Inc. (NASDAQ:ACLS)
Axcelis Technologies, Inc. (NASDAQ:ACLS) is a semiconductor manufacturing equipment provider headquartered in Boston, Massachusetts. The firm makes chip making tools that allow semiconductor fabrication companies like Intel to use ions in the manufacturing process. Due to the high precision nature of its machines, Axcelis Technologies, Inc. (NASDAQ:ACLS) enjoys competitive advantages over rivals that might be eager to enter its industry.
Analyzing Axcelis Technologies, Inc. (NASDAQ:ACLS)’s Recent Performance
Axcelis Technologies, Inc. (NASDAQ:ACLS) posted a strong set of results for the first quarter The firm brought in $252 million in revenue and $1.57 in diluted earnings per share. The EPS beat analyst estimates of $1.24 and added to the string of quarterly beats in the previous three periods. On the margins side, the first quarter of 2024 saw Axcelis Technologies, Inc. (NASDAQ:ACLS) improve its cost control by reporting a gross margin of 46%. The gross margin for the previous quarter was 44.4%. Axcelis Technologies, Inc. (NASDAQ:ACLS)’s stock is up 11% since the report.
Axcelis Technologies, Inc. (NASDAQ:ACLS) Has Grown Its Revenue & Maintained A Positive Bottom Line
While Axcelis Technologies, Inc. (NASDAQ:ACLS)’s first quarter beat analyst EPS estimates, the revenue growth left a lot to be desired. On a year over year basis, its revenue was flat. However, as of December 2023, Axcelis Technologies, Inc. (NASDAQ:ACLS)’s average annualized revenue growth rates for the past three, five, and ten years are 33%, 20%, and 19%, respectively. Digging deeper into these figures to see what drove this revenue growth, Axcelis Technologies, Inc. (NASDAQ:ACLS)’s respective annual revenue stood at $474 million, $662 million, $919 million, and $1.1 billion between 2020 and 2023. In simple growth terms, the revenue more than doubled between 2020 and 2023. The past five years have seen quite a bit of turmoil in the chip sector, so the lower growth figures are understandable as we discuss in the introduction of our coverage of some top revenue growth and profitable stocks.
Analyst Sentiment For Axcelis Technologies, Inc. (NASDAQ:ACLS)
B. Riley, Benchmark, Craig Hallum, and Needham are some of the sell-side firms that have covered Axcelis Technologies, Inc. (NASDAQ:ACLS)’s stock so far this year. All except Needham have rated the shares as Buy. The latest upgrade was to Buy from Hold and it came from Craig-Hallum in May 2024. The firm kept a $130 share price target for Axcelis Technologies, Inc. (NASDAQ:ACLS).
Does Axcelis Technologies, Inc. (NASDAQ:ACLS) Stand Out Amongst High Growth and Profitable Stocks?
While Axcelis Technologies, Inc. (NASDAQ:ACLS) has its merits when it comes to previous growth rates, is it highly rated when it comes to semiconductor stocks and those that are favored by analysts? Axcelis Technologies, Inc. (NASDAQ:ACLS) is a mid-cap stock that raked in $1.1 billion in revenue in 2023. The trailing twelve month figures as of the first quarter of 2024 are slightly down, so perhaps other stocks might stand out. Additionally, the sizeable share price movements for a chip stock in an AI wave mean that it might not attract those who favor stable stocks.
At Insider Monkey we are closely following the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
For some such stocks, you can check out 13 Best Low Volatility Stocks to Buy According to Hedge Funds.
Disclosure: None. Is Axcelis Technologies A High Growth Semiconductor Stock That’s Profitable? was originally published on Insidermonkey.com.