ASYS AI Equipment Sales Soar Fivefold: What’s Fueling the Growth and Can It Last?

ASYS' AI Equipment Sales Surge 5x Year Over Year: Can the Momentum Continue?

Amtech Systems (ASYS) delivered strong third-quarter results for fiscal 2025, beating expectations with $19.6 million in revenue—a 26% increase from the previous quarter. Non-GAAP earnings per share jumped to 6 cents, a significant turnaround from a 16-cent loss last quarter. The main driver? A fivefold increase in sales of equipment used for AI infrastructure, which now represents about 25% of Thermal Processing Solutions’ revenue.

This growth highlights how quickly AI demand is becoming a key part of Amtech’s business. Management also noted that third-quarter bookings indicate AI-related demand will stay strong in the near term.

Challenges in Other Business Areas

Not all segments are performing well. Demand tied to older semiconductor nodes—commonly used in automotive and industrial markets—remains weak. To offset this, Amtech is focusing more on recurring revenue streams like consumables, spare parts, and services, which accounted for roughly 40% of total sales in the quarter.

The company has also taken steps to reduce costs. Over the past 18 months, it cut its factory footprint from seven sites to four and shifted some manufacturing to partners, saving $13 million annually. Looking ahead, Amtech expects fourth-quarter revenues between $17 million and $19 million, with AI-related equipment sales as the main growth driver.

How Does ASYS Stack Up Against Competitors?

Amtech competes with larger companies like Applied Materials (AMAT) and Lam Research (LRCX), which also target AI chip packaging. In fiscal 2025’s fourth quarter, Lam Research posted $5.17 billion in revenue, up 34% year over year, fueled by strong demand for etch and deposition tools used in AI chip production.

Applied Materials reported $7.3 billion in revenue for the third quarter, a 7.7% year-over-year increase, thanks to high demand for advanced packaging tools for AI chips.

ASYS Stock Performance, Valuation, and Outlook

• Amtech’s shares have gained 45.5% year to date, outperforming the Zacks Semiconductor - General industry growth of 22.8%.
• The stock trades at a forward price-to-sales ratio of 1.15X, well below the industry average of 13.89X.
• The Zacks Consensus Estimate for fiscal 2025 earnings per share is a loss of 6 cents, but this estimate has been revised upward in the last month.
• For fiscal 2026, earnings are projected to reach 15 cents per share, implying 350% year-over-year growth, with estimates stable for the past 30 days.
• Amtech currently holds a Zacks Rank #1 (Strong Buy), signaling confidence in its growth prospects.

For sales professionals, Amtech Systems represents an interesting case of a company capitalizing on AI demand while managing legacy market challenges. Keeping an eye on AI infrastructure equipment sales and cost-saving measures will be key to anticipating future growth.

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