TD Cowen has increased its price target for Advanced Energy Industries (NASDAQ:AEIS) to $300 from $210, though the research firm continues to carry a Hold rating on the shares. The decision follows strong quarterly results and an upgraded outlook tied to ongoing strength in the semiconductor market.
The stock is trading at $315.79, a level that already exceeds TD Cowen's revised target and is above the prior 52-week high of $283.72. TD Cowen pointed to semiconductor market strength as a central factor behind Advanced Energy's quarterly beat and the firmer outlook, and the firm expects that strength to pick up pace through the second half of the year.
TD Cowen also highlighted product-level catalysts supporting the company - new semiconductor-focused offerings, specifically eVoS and eVerest, are beginning to ramp. These product ramps were cited as contributors to the positive near-term trajectory.
On the datacenter side, TD Cowen anticipates sequential improvement in revenue and projects datacenter revenue to grow by more than 30% year-over-year in calendar 2026. That expectation forms part of the firm's rationale for raising the price target.
Despite the upward revision to the target, TD Cowen retained its Hold rating, noting that current valuation levels leave the firm cautious and effectively "on the sidelines" with respect to the stock. The firm did not change its view on near-term fundamentals but emphasized valuation as the limiting factor for a more constructive recommendation.
Recent financial performance
Advanced Energy reported fourth-quarter 2025 results that outpaced consensus. Earnings per share reached $1.94, above the forecasted $1.78. Revenue totaled $489 million versus a projected $473.11 million, representing an 18% year-over-year increase. That revenue gain exceeded the top end of guidance and surpassed consensus estimates that had anticipated roughly 14% growth.
Following those results, Needham raised its price target on Advanced Energy from $290 to $330 and maintained a Buy rating. Needham noted that earnings per share landed at the upper end of guidance and were 9% above consensus, underscoring the strength reflected in the quarterly numbers.
Implications and context
The combination of accelerating semiconductor demand, the ramp of new semiconductor products, and improving datacenter revenue expectations underpinned TD Cowen's target increase. At the same time, the fact that the shares are trading above the newly established target has left the research firm reluctant to move to a more positive recommendation.
Market participants will be watching execution on product ramps such as eVoS and eVerest and whether datacenter revenue trends align with the projected >30% year-over-year growth in calendar 2026.
Bottom line
TD Cowen raised its price target for Advanced Energy Industries to $300 while keeping a Hold rating due to valuation concerns, even as the company delivered stronger-than-expected fourth-quarter 2025 results and other analysts, including Needham, moved to higher targets. The stock currently trades above the revised target, reflecting investor demand amid the semiconductor and datacenter outlooks.