First of all I am invested in this stock and wanted to hear your thoughts as I see almost zero downside in this stock. I am looking to invest further. I am German therefore please excuse any mistakes and faults in translation.
Quick summary of the company: Aixtron is a German high-tech producer of vapour deposition equipment, used for making a range of electronic and opto-electronic products in the semiconductor field. They supply a broad range of global players.
Their product is using different technique than ASML as well as targeting different customers, why they are under the radar of semiconductor / AI boom in my view. Another factor is being a German midcap, usually out of reach of the global market attention. Nevertheless their product is top-notch, high-tech market leading machines optimal to create products in the broad field of chips besides the GPU / AI that will be used everywhere in the future.
I know about the company as it’s a well known „hidden champion“ in Germany, global market leader in their high-tech field and incredibly well performing mid-cap stock during the last decade. They have been a spin-off out of the German academic field, growing for decades, constantly proving high-end products, almost constantly generating profit. Therefore myself as an investor is not investing in a gamble / stock that’s need to quickly growth and reach profit. It’s an investment in a mature high-tech stock.
They just implemented their newest product line, in addition they spend a lot of cash on R&D to keep their position in the market, they just opened another 100m research lab. There was a little bit of discussion about the potential loss of a few contracts and the stock was beaten down a bit after incredible growth – why I am currently looking to expand my position and now look for second opinions. The discussion seems to be without any real basis, they just delivers good numbers as well as strong outlook a few days ago. It seems they did not lose contracts as discussed in German media which was just rumors.
Currently the company trades at p/e of 16, extremely nice in my view, projecting solid growth as well as a dividend for the next quarters. In my view their product will boom to create various products in the semiconductor field, they are market lead in their area for customers around the globe.
Happy to discuss!
