Advanced Energy Industries stock price target raised to $188 by Needham

Investing.com - Needham raised its price target on Advanced Energy Industries (NASDAQ:AEIS) to $188.00 from $155.00 on Monday, while maintaining a Buy rating on the stock. The company’s stock, currently trading at $169.62, has demonstrated remarkable momentum with a 95.78% surge over the past six months. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The firm cited ongoing strength in the company’s Data Center Computing business, which grew 107% year-over-year through the first half of 2025, as a key factor in its optimistic outlook for 2026.

Needham also pointed to a gradual recovery already underway in Advanced Energy’s Industrial & Medical business segment, along with encouraging tailwinds from new products that position the company to outperform the broader wafer fabrication equipment market next year.

The research firm expressed confidence in Advanced Energy’s broad portfolio of precision power business across multiple markets and noted that operational improvements implemented by management could lead to potential upside in revenue and margins in 2026.

Needham’s positive outlook assumes that the most recent trade tensions with China will subside, allowing the company to capitalize on its strong market positioning and business momentum.

In other recent news, Advanced Energy Industries reported strong financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved earnings per share (EPS) of $1.50, outperforming the projected $1.31, while revenue reached $442 million, exceeding forecasts. In addition to its financial performance, Advanced Energy Industries plans to showcase its next-generation fiber optic thermometer, the M-1200, at the upcoming SEMICON West 2025 event. The M-1200 features enhanced accuracy and a broader temperature measurement range, according to a company press release. Furthermore, the company has expanded its power converter lineup with the introduction of two new high-efficiency modules, the Artesyn NDQ1300 and NDQ1600, targeting advanced technology applications.

KeyBanc Capital Markets recently raised its price target for Advanced Energy Industries to $195, maintaining an Overweight rating, citing positive interactions with company management. This follows a previous price target increase to $180, driven by optimism around the company’s competitive positioning and long-term execution capabilities. These developments reflect a period of growth and innovation for Advanced Energy Industries, highlighting its focus on both financial performance and product advancement.

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