Aixtron stock jumped over 20 percent midweek. Should you still buy them? [premium]

The German semiconductor equipment supplier, a high-tech pearl, has overcome the delivery problems and surprised with its forecast. After soaring high, the share fell back a bit on Thursday. That’s what experts are now advising investors to do.

Chips have been among the rarest goods in world trade for the past three years. The lockdowns caused by the pandemic and the disrupted supply chains slowed down the export of the tiny products, most of which were produced in the Far East. Buyers of everything from cars to refrigerators had to put up with months of waiting. But not only the manufacturers of these goods were affected by the delays, but also plant manufacturers such as Aixtron. The lack of export licenses also slowed down business at the semiconductor equipment supplier in the previous year. Nevertheless, the German high-tech forge managed to increase sales by eight percent to 463.2 million euros and a six percent increase in profit to 100.5 million.

Aixtron missed the analysts’ expectations, but the outlook presented by CEO Felix Grawert on Tuesday is all the more clear. The high demand and the associated good order situation should allow sales to grow by at least a quarter to EUR 580 to 640 million. Profitability should also improve, with the EBIT margin increasing from 23 to 25 to 27 percent.

Investors react enthusiastically