Stifel has raised its price target on Advanced Energy Industries (NASDAQ:AEIS) to $310 from $270 while retaining a Buy rating ahead of the company's fourth-quarter earnings report scheduled for February 10. The firm also updated its estimates for fourth-quarter 2025 and calendar years 2026 and 2027, reflecting a view that semiconductor capital-equipment subsystem suppliers should see stronger activity in the first half of 2026, ahead of an original-equipment-manufacturer ramp anticipated in the second half of 2026.
In its updated outlook, Stifel expects Advanced Energy’s semiconductor capital-equipment revenue to expand in the low-teens percentage range in 2026. The firm attributes that trajectory to capacity expansion in DRAM and Foundry-Logic segments, where Advanced Energy has a notable position in conductor etch applications.
Stifel also raised its forecast for the company’s datacenter business, modeling a 35% increase in datacenter revenue for 2026 - above management’s initial guidance of 25% to 30% growth. The firm says this view is underpinned by initial 2026 capital-expenditure budgets from leading hyperscalers, which Stifel reports are, on average, roughly 70% higher.
The new $310 price target is derived from a valuation of 30 times Stifel’s calendar-year 2027 earnings-per-share estimate plus net cash per share. Stifel summarized its stance by noting that Advanced Energy appears positioned for multi-pronged strength in calendar-year 2026 as the highest-margin semiconductor-capital equipment end market rebounds in tandem with the datacenter business.
Other broker notes in recent coverage reflect a similar upward tilt in sentiment. KeyBanc raised its price target to $280 and kept an Overweight rating, citing multiple avenues for growth and particular exposure to data-center demand. Needham increased its target to $290, highlighting robust demand in Data Center Computing and a favorable outlook in the Semiconductor segment, both of which represent substantial portions of Advanced Energy’s revenue base.
The reporting also references additional Stifel communications: the firm previously adjusted a price target to $270 while maintaining a Buy rating and pointing to Advanced Energy’s leadership in power-delivery subsystems for semiconductor manufacturing. In another note after meetings with the company’s senior management, Stifel reiterated a Buy rating with a $230 price target, emphasizing the strong performance of the datacenter power-conversion business, which the firm said has more than doubled year-to-date due to higher power requirements for AI datacenter racks.
Collectively, these analyst moves portray growing confidence among equity research teams in Advanced Energy’s near-term growth prospects across semicap and datacenter end markets as the company heads into 2026. Investors should, however, note that multiple price-target adjustments from the same firm appear in the coverage, reflecting evolving views tied to market- and company-level developments.
Stifel’s latest price-target increase and the revisions from KeyBanc and Needham reinforce an upbeat posture among sell-side analysts, particularly around semiconductor capital-equipment and data-center power solutions. The firms’ models, assumptions and valuation approaches vary, but the common thread is anticipation of stronger demand in 2026 supporting revenue and margin recovery for Advanced Energy.