What Happened?
Shares of manufacturing equipment and systems provider Advanced Energy (NASDAQ: AEIS) jumped 3.4% in the afternoon session after the company showcased its latest ultra-efficient power solutions for AI data centers at the Open Compute Project (OCP) Global Summit. Advanced Energy's new power conversion innovations were designed to help data center operators meet the rising energy and cooling needs of AI infrastructure. At the event, the company displayed a new 100 kW power shelf which achieved over 97.5% efficiency. This high level of performance aimed to reduce wasted energy in GPU-intensive environments by delivering greater efficiency and reliability.
The shares closed the day at $190.14, up 4% from previous close.
Is now the time to buy Advanced Energy? Access our full analysis report here.
What Is The Market Telling Us
Advanced Energy’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 6.8% on the news that Needham analyst James Ricchiuti maintained a "Buy" rating on the stock and increased the price target to $188 from $155. The analyst's positive view was based on expected significant growth in the company's Data Center Computing division and an anticipated recovery in its Industrial & Medical business. This action followed other positive analyst sentiment from late in the previous week, when KeyBanc Capital Markets also raised its price target for Advanced Energy after positive meetings with the company's management.
Advanced Energy is up 61.5% since the beginning of the year, and at $186.27 per share, has set a new 52-week high. Investors who bought $1,000 worth of Advanced Energy’s shares 5 years ago would now be looking at an investment worth $2,552.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
