Will AEIS’s New Power Modules Reshape Its Position in the High-Efficiency Data Center Market?

• On August 27, 2025, Advanced Energy Industries announced it had expanded its ultra-efficient non-isolated bus converter family with two new high-power modules targeting 48 V power conversion in AI server, compute, networking, and industrial applications.
• The newly launched NDQ1300 and NDQ1600 modules achieve peak efficiencies up to 98%, addressing industry needs for power density and flexibility in advanced data center and industrial systems.
• We'll examine how these ultra-efficient power modules in the AI and data center segment may influence Advanced Energy's investment outlook.

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Advanced Energy Industries Investment Narrative Recap

Investors in Advanced Energy Industries are generally betting on continued demand for advanced power conversion solutions in AI, data center, and industrial markets, while acknowledging the importance of maintaining design wins among hyperscale data center customers. The recent launch of ultra-efficient NDQ1300 and NDQ1600 modules could modestly boost short-term momentum in the data center segment, but does not fundamentally change customer concentration risk, which remains a central issue for the business.

Of the company’s recent announcements, the June 2025 introduction of the Thyro-XD SCR power controller stands out as especially relevant, as it also targets efficiency and power density in semiconductor manufacturing, a key catalyst, since demand for next-gen semiconductor equipment underpins broader growth expectations. Both developments reinforce Advanced Energy’s focus on high-end applications where engineering innovation is crucial to capturing new design wins and revenue opportunities.

Yet in contrast to the potential for revenue lift, the highly concentrated customer base in data centers still means if spending slows or shifts, investors should be aware of...

Read the full narrative on Advanced Energy Industries (it's free!)

Advanced Energy Industries is expected to reach $2.1 billion in revenue and $348.3 million in earnings by 2028. This outlook is based on a projected annual revenue growth rate of 8.5%, and an earnings increase of $262.9 million from the current $85.4 million.

Uncover how Advanced Energy Industries' forecasts yield a $148.70 fair value, in line with its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community span US$132.22 to US$148.70 based on two opinions. Despite product launches, customer concentration in the data center market could directly impact Advanced Energy’s future performance, so reviewing diverse viewpoints is essential.

Explore 2 other fair value estimates on Advanced Energy Industries - why the stock might be worth as much as $148.70!

Build Your Own Advanced Energy Industries 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 Advanced Energy Industries research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Advanced Energy Industries research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Advanced Energy Industries' 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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