Is the GE Aerospace Silicon Carbide Alliance Reshaping the Investment Story for Axcelis Technologies (ACLS)?

• GE Aerospace announced a joint development program with Axcelis Technologies to advance production-ready 6.5 to 10kV superjunction silicon carbide power devices on Axcelis’ Purion XEmax™ platform, supporting high-performance power switches for aerospace and emerging critical technologies.
• This collaboration brings together extensive SiC expertise and unique high-energy ion implantation capabilities, directly targeting applications in aerospace, AI, autonomous vehicles, and resilient power infrastructure.
• We'll explore how this alliance with GE Aerospace and a focus on silicon carbide technology may influence Axcelis Technologies' long-term investment narrative.

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Axcelis Technologies Investment Narrative Recap

To own shares of Axcelis Technologies, you need to believe in the company’s ability to capitalize on global demand for advanced silicon carbide (SiC) power devices, especially as adoption progresses beyond the early stages in automotive, industrial, and aerospace sectors. The recent alliance with GE Aerospace provides Axcelis with additional technical validation for Purion XEmax and exposure to aerospace and high-voltage SiC, but it is unlikely to change the company's most important short-term catalyst: a broader rebound in high-energy and advanced node tool demand, particularly outside China. Heavy China exposure continues to be the main risk, especially considering export controls and local competition.

Of the recent announcements, the Q2 2025 earnings report stands out, highlighting another period of sequential revenue and profit declines amid muted bookings and ongoing customer digestion of capacity, underscoring that longer-term partnerships in advanced SiC, like the GE Aerospace collaboration, may not offset current headwinds. While engineering alliances are critical for the future, near-term financial performance and revenue predictability remain tied to demand trends and regional exposure.

By contrast, the real story investors should not overlook is the potential impact of tightening export controls and evolving competition in Axcelis's biggest market...

Read the full narrative on Axcelis Technologies (it's free!)

Axcelis Technologies is projected to reach $836.1 million in revenue and $66.7 million in earnings by 2028. This outlook assumes a 2.3% annual decline in revenue and a decrease in earnings of $91.8 million from the current level of $158.5 million.

Uncover how Axcelis Technologies' forecasts yield a $85.50 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community have shared fair value estimates ranging from US$35.84 to US$91.71 per share. With ongoing reliance on China for a majority of revenue, it’s clear that investor opinions, and risk appetites, differ widely, so you’ll want to consider several perspectives before deciding where you stand.

Explore 3 other fair value estimates on Axcelis Technologies - why the stock might be worth less than half the current price!

Build Your Own Axcelis Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Axcelis Technologies research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Axcelis Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Axcelis Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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