Advanced Energy Industries, Inc (AEIS.O): Growth Outlook Steps Higher; Maintain Buy

AEIS delivered strong beat-and-raise results, with management now expecting 2027 revenue to grow 30% Y/Y vs 20%+ prior, driven by data center and semis, despite some supply constraints. In data center, continued strength from its hyperscale customers could support meaningful growth next year, while engagement with second-wave customers continues to broaden, providing incremental long-term growth opportunity. In semiconductor, AEIS expects to grow at least in line with WFE next year, driven by increasing exposure to leading-edge logic and memory, higher etch/deposition intensity, and the ramp of new product design wins in both advanced-node plasma power and system power, which could grow to ~10% of semis revenue next year. We remain constructive on the company's diversified growth outlook, and lift CY26/27 EPS estimates by 9%/10% and introduce CY28 EPS of $24.33. We slightly lower TP to $450 on 24x P/E applied to revised CY27 EPS to reflect lower market multiples. Maintain Buy. Manageme