ASYS

Amtech Systems ASYS, a manufacturer of equipment and consumables enabling AI semiconductor device packaging and advanced substrate fabrication, reported its third-quarter fiscal 2026 results on Aug. 5.The company’s quarterly results surpassed the Zacks Consensus Estimate for both the top and bottom lines. Revenues posted healthy year-over-year growth of 14.5%, beating the Zacks Consensus Estimate by 4.11%. Earnings of 14 cents per share beat the Zacks Consensus Estimate of 10 cents.Strong AI-driven demand is powering double-digit revenue growth, expanding margins, improving profitability, robust bookings and a significantly stronger balance sheet. The TPS business continues to benefit from accelerating AI infrastructure and advanced packaging investments.However, what stance should investors take on this stock? Does its recent strong performance provide a compelling enough reason to buy, or are there potential challenges investors need to consider? Let's examine in detail. Amtech Systems delivered a solid fiscal third quarter, with revenues rising 14.5% year over year to $22.4 million, reaching the high end of management's guidance. The growth was primarily driven by robust demand for AI-related equipment in the Thermal Processing Solutions (TPS) segment, underscoring the company's increasing exposure to AI infrastructure investments.TPS remained ASYS' primary growth engine during the quarter. Segment revenues increased 24.9% year over year to approximately $17.7 million, supported by strong demand for advanced packaging equipment, AI server board assembly solutions, and higher parts and services revenues. AI-related revenues in the quarter increased by roughly 120% from the prior-year period, highlighting the company's growing exposure to AI infrastructure spending.Profitability also improved meaningfully. Gross margin expanded 330 basis points year over year to 50%, benefiting from a higher-margin product mix and Amtech Systems' semi-fabless operating model. GAAP net income increased to $1.7 million from $0.1 million a year ago, while adjusted EBITDA reached $3.3 million, exceeding management's guidance.Demand remained healthy beyond the reported quarter. Customer orders increased to $28.8 million from $21.1 million in the prior quarter, while backlog expanded to $28.7 million from $22.3 million. The TPS segment generated a strong book-to-bill ratio of 1.37, indicating orders continued to outpace shipments. Management expects a significant portion of the backlog to convert into revenues during fiscal fourth quarter 2026 and the first half of fiscal 2027, providing healthy revenue visibility.Looking ahead, management expects fiscal fourth-quarter revenues of $22.5-$24.0 million and anticipates continued strength in AI-related demand. Supported by disciplined spending, operating leverage and a healthy backlog, the outlook suggests the company is well positioned to sustain its recent momentum. Amtech Systems shares have surged 208.2% over the past year, significantly outperforming the Zacks Semiconductor - General industry's 27.2% gain, the broader Zacks Computer & Technology sector’s 29.5% rise and the S&P 500’s 23.5% return.ASYS' stellar share price performance has outpaced that of several semiconductor peers, including STMicroelectronics STM, Texas Instruments Incorporated TXN and NVIDIA NVDA. Over the same period, shares of STMicroelectronics, Texas Instruments and NVIDIA have gained 111.7%, 48.7% and 19.8%, respectively. Image Source: Zacks Investment Research Despite Amtech Systems’ solid third-quarter fiscal 2026 performance, the continued weakness in its Semiconductor Fabrication Solutions (SFS) business remained a significant concern. SFS revenues declined 13.3% year over year to approximately $4.6 million, primarily due to very weak demand for products supporting silicon carbide (SiC) wafer production. While the Thermal Processing Solutions (TPS) segment benefited from booming AI-related demand, management acknowledged that the SFS business continued to weigh on overall performance.Management has adopted a cautious stance regarding the prospects of this segment; they have stated that they do not anticipate any significant recovery in the demand for silicon carbide due to structural changes within the industry. Instead, the company is focusing on cost controls, expanding its specialty chemicals business, and growing recurring parts and services revenue to stabilize SFS. The stock is currently trading below the 50-day moving average, indicating a bearish trend. Image Source: Zacks Investment Research ASYS' valuation remains a key concern. The stock is currently trading at a trailing 12-month price-to-earnings (P/E) multiple of 71.19X, well above the industry average of 41.49X. Moreover, ASYS carries a Zacks Value Score of D, suggesting that the stock is not so cheap and is overvalued at this moment. Because the trailing P/E is based on the company's reported earnings over the past four quarters, it offers a fact-based assessment of valuation. The premium multiple suggests the market has already priced in much of Amtech Systems’ growth potential, increasing downside risk.Meanwhile, STMicroelectronics, Texas Instruments and NVIDIA are trading lower at 62.82X, 42.27 and 38.66X, respectively. Image Source: Zacks Investment Research Amtech Systems is executing well, with AI-driven demand supporting strong revenue growth, expanding margins, improving profitability and a healthy backlog. However, the continued weakness in its SFS business, premium valuation and shares trading below the 50-day moving average warrant caution. Existing investors may consider holding the stock while monitoring whether AI-driven execution continues to offset the structural challenges in SFS and justify the elevated valuation. For new investors, staying on the sidelines until the risk-reward profile becomes more favorable may be a wise approach.ASYS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amtech Systems, Inc. (ASYS) : Free Stock Analysis Report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report STMicroelectronics N.V. (STM) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $22.4 million, up 14% year-over-year and at the top end of guidance. Gross Margin: Increased to 50%, up nearly 400 basis points from 46.7% in the prior year quarter. Adjusted EBITDA: $3.3 million, approaching 15% of sales. GAAP Net Income: Approximately $1.7 million, or $0.10 per diluted share, compared to $100,000, or $0.01 per share, in the prior year period. Thermal Processing Solutions (TPS) Revenue: Approximately $17.7 million, up nearly 25% year-over-year. TPS AI-Related Revenue: Up approximately 120% from the prior year period, accounting for more than 40% of segment revenue. TPS Parts and Services Revenue: Increased approximately 30% year-over-year, representing 20% of TPS revenue. TPS Book-to-Bill Ratio: Approached 1.4 in the quarter, marking the third consecutive quarter with a book-to-bill exceeding one. Semiconductor Fabrication Solutions (SFS) Revenue: $4.6 million, down just over 13% year-over-year. Entrepix Parts and Service Revenue: Increased 19% year-over-year. Cash and Cash Equivalents: $83.1 million at June 30, 2026, including $56.5 million in net proceeds from a public offering. Cash Flow from Operations: $1.1 million generated during the fiscal third quarter. SG&A Expenses: Increased approximately $600,000 from the prior year quarter. R&D Expenses: More than doubled from the prior year, relatively flat compared to Q2. Foreign Currency Exchange Losses: Approximately $400,000 in Q3 2026, compared to $100,000 in the prior year period. Q4 Fiscal 2026 Revenue Guidance: Expected to be in the range of $22.5 million to $24 million. Warning! GuruFocus has detected 5 Warning Signs with ASYS. Is ASYS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue for the quarter was $22.4 million, up 14% year-over-year and at the top end of guidance, driven by strong AI-related demand in the Thermal Processing Solutions segment. AI-related revenue in the Thermal Processing Solutions segment surged approximately 120% year-over-year, with AI accounting for more than 40% of segment revenue. Gross margin improved to 50%, up nearly 400 basis points year-over-year, and adjusted EBITDA of $3.3 million approached 15% of sales, reflecting strong operating leverage. The book-to-bill ratio for the Thermal Processing Solutions segment approached 1.4, marking the third consecutive quarter with a book-to-bill above 1, indicating strong future demand. The company received its first order for equipment used in producing cooling components for AI semiconductors, expanding its participation in AI infrastructure beyond advanced packaging and server board assembly. Cash position strengthened significantly to $83.1 million, including $56.5 million from an oversubscribed public offering, providing ample capital for potential synergistic acquisitions and organic growth. Revenue in the Semiconductor Fabrication Solutions segment declined over 13% year-over-year, primarily due to a significant reduction in demand for PR Hoffman templates used in silicon carbide substrate manufacturing. The company does not expect a meaningful recovery in silicon carbide demand due to structural changes in the industry, leading to a de-emphasis of that product line. Selling, general, and administrative expenses increased by approximately $600,000 year-over-year, driven by expanding business activities, compensation, and consulting fees. Research, development, and engineering expenses more than doubled year-over-year, and are expected to increase further as the company builds out platforms for next-generation opportunities. The company recorded approximately $300,000 in non-cash charges related to the sublease of a previously closed facility, including an impairment of the lease asset. Foreign currency exchange losses increased to $400,000 in the quarter, primarily due to a weakening US dollar against the Chinese renminbi. Q: Can you help us understand how long you expect the TPS backlog to convert to revenue and the timing there?A: Robert Daigle, Chairman and CEO, stated that the backlog is expected to convert primarily in the fiscal fourth quarter, with some carrying into the first quarter and a portion into the second quarter of fiscal year 2027. Q: Within your existing silicon carbide customers, what is the mix currently of EV versus defense, medical, and other industrial customers, and where do you see potential areas for growth?A: Robert Daigle, Chairman and CEO, explained that the company has seen a market decline in silicon carbide demand, which is now de minimis. He does not envision a meaningful recovery and stated the company has de-emphasized this area, restructuring the business to focus on AI infrastructure equipment, specialty chemicals, and parts and service in the mature market. Q: How much of the backlog uptick is from a few large hyperscaler or OSAT orders versus a broad step up, and how bumpy is that?A: Robert Daigle, Chairman and CEO, clarified that the company's equipment is agnostic regarding which hyperscaler or OSAT it ships to. The demand is tied to overall AI infrastructure build-outs across the spectrum of GPU and TPU applications, not specific to any single player or customer. Q: The Q4 margin guide seems to imply a step down from the 15% EBITDA margin in Q3. Is that conservatism or a mix shift?A: Robert Daigle, Chairman and CEO, noted that results depend heavily on mix. He clarified that "low to mid-teens" includes 13% as the first number in the teens, and the company considers 15% to be within that low to mid-teens range. Q: Given the balance sheet strength, what does the M&A environment look like, and how do you prioritize capital deployment between organic growth and acquisitions?A: Robert Daigle, Chairman and CEO, stated that the company's strategy is to expand participation in AI infrastructure build-outs. For M&A, key criteria include creating good return on invested capital and potentially implementing a similar asset-light business model. He characterized it as an addition to strong organic growth, dependent on availability and valuations in coming quarters. Q: Can you expand on the first order for equipment used in the production of cooling components for AI semiconductors?A: Robert Daigle, Chairman and CEO, explained that the application is geared towards removing heat directly from semiconductors, a relatively new trend in the industry. A customer is building their process around Amtech's equipment, which is similar to technology previously used for EV battery heat exchangers, now applied to cooling semiconductors and data centers. Q: Would you characterize the cooling application opportunity as a small niche or something more significant?A: Robert Daigle, Chairman and CEO, stated it is too early to tell. He views it as a success story in the company's efforts to expand in the AI infrastructure space, but the ultimate size will depend on how successful the customer is with the application. Q: Approximately how soon after the Semicon Taiwan show in September will you start taking orders for the new products?A: Robert Daigle, Chairman and CEO, said the company will be ready to start taking orders after the introduction. He expects to provide more color on the roadmap at the next quarterly call, after gauging how quickly customers are ready to move on the new capabilities. Q: How long would it take to produce and ship the new machines in production?A: Robert Daigle, Chairman and CEO, noted that the new platforms are similar to existing ones with typical lead times of six to eight weeks. He suspects initial lead times may be on the high end or slightly above, but should fall within normal cycle times within six to nine months. Q: How is the progress going on the specialty chemicals business?A: Robert Daigle, Chairman and CEO, acknowledged some wins and a growing pipeline. He noted that it takes time to replicate successes with other customers, but the company expects incremental improvement in the coming quarters as it builds momentum behind the pipeline. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Amtech Systems, Inc. ASYS used its fiscal third-quarter earnings call to stress that AI demand, not a broad portfolio recovery, is driving growth. Management highlighted stronger bookings, greater backlog visibility and margin leverage in Thermal Processing Solutions. Non-GAAP earnings of $0.14 per share topped the Zacks Consensus Estimate of $0.1, while revenues of $22.4 million exceeded the $21.5 million estimate. The call’s central message was that AI orders are extending into fiscal 2027 as silicon carbide demand remains weak. Amtech Systems, Inc. price-consensus-eps-surprise-chart | Amtech Systems, Inc. Quote Chairman and CEO Robert Daigle said AI-related TPS revenues rose approximately 120% year over year and represented more than 40% of segment sales. TPS revenues reached about $17.7 million, up nearly 25%. Daigle tied demand to advanced packaging and AI server board assembly, supported by Amtech’s TrueFlat technology and temperature-uniformity capabilities. Daigle added that parts and services revenues grew about 30%. CFO Thomas Sabol said the category represented roughly 20% of TPS revenues, providing recurring support as the installed base expands. Sabol guided fiscal fourth-quarter revenues to $22.5-$24 million and adjusted EBITDA margin to the low to mid-teens. AI-related equipment should contribute well over 40% of TPS sales. The outlook follows a quarter with 50% gross margin and $3.3 million of adjusted EBITDA, about 15% of revenues. Management credited higher-margin AI offerings, product-line rationalization and the semi-fabless model. When a Titan Partners analyst asked whether the margin language implied a decline, Daigle said 15% fits management’s range. He identified mix as the main variable. Customer orders rose to $28.8 million from $21.1 million sequentially, while backlog increased to $28.7 million from $22.3 million. The TPS book-to-bill ratio was 1.37. A ROTH Capital Partners analyst asked about conversion timing. Daigle said that most backlog should convert in fourth-quarter fiscal 2026 and first-quarter 2027, with some extending into the second quarter. A Titan Partners analyst questioned customer concentration. Daigle said that the equipment serves outsourced assembly providers and major manufacturers across GPU and TPU applications, tying demand to the broader AI infrastructure buildout rather than one hyperscaler. Daigle said that demand for PR Hoffman templates used in silicon carbide substrate manufacturing has fallen sharply because of structural industry changes. Management does not expect a meaningful recovery and has de-emphasized the area. Semiconductor Fabrication Solutions revenues declined 13.3% year over year to about $4.6 million, and the segment posted a $91,000 operating loss. Amtech is redirecting effort toward mature-node parts and services and specialty chemicals. Daigle said Entrepix parts and services revenues rose 19%, while Sabol emphasized cost and working-capital discipline. Daigle highlighted Amtech’s first order for equipment used to produce cooling components for AI semiconductors. He described a direct chip-cooling process using technology similar to equipment once supplied for electric-vehicle battery heat exchangers. A Pareto Ventures participant asked about the opportunity’s size. Daigle said that it is too early to quantify and depends on the customer’s success. Amtech also plans to introduce new platforms at SEMICON Taiwan in September. Daigle said that orders could begin after launch, with initial lead times near the high end of the normal six-to-eight-week range. Daigle will become executive chairman, while president and COO Guy Shechter becomes CEO and joins the board. Shechter said that his priorities include strengthening core businesses, expanding the technology portfolio and participating in more customer process steps. Management’s posture remains focused: build on AI-driven organic growth, maintain discipline in the fabrication segment and consider acquisitions only when they add strategic capabilities and meet return requirements. Amtech ended the quarter with $83.1 million in cash and no debt. ASYS carries a Zacks Rank #3 (Hold) at present, indicating a neutral near-term stance. Its Growth Score of A and VGM Score of B are favorable, while Value Score of D and Momentum Score of D show weaker characteristics in those styles. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Style Score complements the Zacks Rank, with the strongest combinations centered on Zacks Rank #1 or #2 stocks paired with A or B scores. The current profile is mixed, and the Zacks Rank can change as analysts revise estimates after the results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amtech Systems, Inc. (ASYS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AI Driven Demand for Advanced Packaging and Server Board Assembly Equipment Drives Increase in TPS Revenue by 25% from Prior Year Period TEMPE, Ariz., August 05, 2026--(BUSINESS WIRE)--Amtech Systems, Inc. ("Amtech" or the "Company") (NASDAQ: ASYS), a manufacturer of equipment and consumables enabling AI semiconductor device packaging and advanced substrate fabrication, today reported results for its third quarter ended June 30, 2026. Fiscal 2026 Third Quarter Financial and Operational Highlights: Net revenue of $22.4 million Cash of $83.1 million, which includes $56.5 million of net proceeds from the oversubscribed public offering of common stock in June 2026 Cash provided by operations of $1.1 million GAAP net income of $1.7 million Non-GAAP net income of $2.4 million(1) Adjusted EBITDA $3.3 million (1) Customer orders of $28.8 million, up from $21.1 million in 2Q26 Backlog of $28.7 million at end of June 2026, compared to $22.3 million at end of March 2026 (1) See GAAP to non-GAAP and EBITDA and Adjusted EBITDA reconciliation in schedules following this release. Management Comments "The continued build-out of AI infrastructure and the growing capital intensity of advanced packaging are driving the increasing demand for our Thermal Processing Solutions (TPS) segment," said Bob Daigle, Chief Executive Officer of Amtech. "Demand for our advanced packaging and server board assembly equipment remains exceptionally strong due to our differentiated capabilities, including true-flat technology and industry-leading temperature uniformity. AI-related revenue in the quarter was up by approximately 120% from the prior year period. Total revenue for the third quarter came in at the high end of our guidance range at $22.4 million, an increase of 14.5% from the same quarter last year. Momentum in our TPS segment is being partially offset by the decline in our mature node Semiconductor Fabrication Solutions (SFS) segment, which continues to be impacted by softer demand, particularly for silicon carbide-related products. "Profitability exceeded guidance due to the strong operating leverage generated by our semi-fabless business model. On a consolidated basis, gross margin increased to 50% for the quarter, and Adjusted EBITDA was $3.3 million, about 15% of revenue. Looking ahead, we are expecting continued growth in the fourth quarter driven by strong AI related equipment orders." "Bookings for equipment that supports AI semiconductor advanced packaging and server board assembly were very strong in the quarter and resulted in a book-to-bill ratio for our TPS segment of 1.37," said Guy Shechter, President and Chief Operating Officer of Amtech. "Upon my appointment as COO a few months ago, I have spent a considerable amount of time visiting with our customers, business partners, supply chain constituents and team members around the world. The common theme from everyone associated with the global AI buildout, particularly for hyperscalers and their foundry and OSAT partners, continues to be the increasing levels of capital spending to keep pace with AI accelerator and agentic AI-related compute demand. This demand profile supports spending that is expected to increasingly flow into advanced packaging, as the industry looks for ways to expand capacity quickly while increasing interconnect density and thermal performance." Mr. Shechter continued, "Amtech’s reflow equipment for advanced packaging is well positioned to capture the ongoing demand seen throughout the industry, and we are investing in next generation equipment to support future requirements. At the same time, we are managing costs in our SFS business to mitigate the impact of weak demand for products supporting mature node customers." GAAP and Non-GAAP Financial Results Net revenues of $22.4 million increased 14.5% from the third quarter of fiscal 2025. The increase is primarily due to strong demand from the Company’s Thermal Processing Solutions (TPS) segment. TPS revenue of approximately $17.7 million was up 24.9% year-over-year, driven by continued strength in AI-related equipment demand and growth in parts and services revenues. In the third quarter of 2026, over 19% of TPS revenue was related to parts and services. Semiconductor Fabrication Solutions (SFS) segment revenue of approximately $4.6 million was down 13.3% year-over-year due to very weak demand for products supporting SiC wafer production. GAAP gross margin increased by $2.1 million compared to the same prior year period. The increase is primarily due to the Company’s product line rationalization, with a focus on growing higher-margin product lines, including AI-advanced packaging solutions. Gross margin as a percentage of sales increased to 50.0%, up from 46.7% in the same period of the prior year. The prior year period gross margin benefited from a $1.0 million Employee Retention Credit ("ERC") refund. Excluding the ERC, normalized gross margin was 41.5%. Selling, General & Administrative ("SG&A") expenses increased by $0.6 million as compared to the fiscal 2025 third quarter. The increase from the prior year period is primarily due to expanding business activities including executive staffing, tax and IT consulting fees. Research, Development, and Engineering expenses increased $0.5 million compared to the same period last year driven by increases in our TPS segment. GAAP net income for the third quarter of fiscal 2026 was $1.7 million, or $0.11 per share. This compares to GAAP net income of $0.1 million, or $0.01 per share, for the third quarter of fiscal 2025. The Company’s GAAP net income includes $0.4 million for foreign currency exchange losses in the third quarter of fiscal 2026, as compared to $0.1 million in the prior year, primarily driven by a weakening United States Dollar against the Chinese Renminbi. Unrestricted cash and cash equivalents at June 30, 2026, were $83.1 million, compared to $24.4 million at March 31, 2026 and $17.9 million at September 30, 2025. During the third quarter ended June 30, 2026, the Company raised $56.5 million of net proceeds from a $60.0 million oversubscribed public offering of common stock. The Company continued to benefit from operational cash generation, working capital optimization, strong accounts receivable collections from customers, and accounts payable management, and generated $1.1 million in cash flow from operations during the fiscal third quarter of 2026. Outlook For the fourth fiscal quarter ending September 30, 2026, the Company expects revenues in the range of $22.5 million to $24.0 million. The Company’s Adjusted EBITDA margin for the period is expected to be in the low to mid-teens. This preliminary outlook reflects continued strength in AI-related demand for advanced packaging and panel-level packaging equipment within the TPS segment and disciplined spending to maximize operating leverage throughout the entire organization. A portion of Amtech's results is denominated in Renminbi, a Chinese currency, and other Asian currencies. The outlook provided in this press release is based on an assumed exchange rate between the United States Dollar and the foreign currencies. Changes in the value of the foreign currencies in relation to the United States Dollar could cause actual results to differ from expectations. Conference Call Amtech Systems will host a conference call at 5:00 pm ET today, August 5, 2026, to discuss fiscal third quarter financial results. The call will be available to interested parties by dialing 412-365-5127. A live webcast of the conference call will be available in the Investor Relations section of Amtech's website at: https://www.amtechsystems.com/investors/events. A replay of the webcast will be available in the Investor Relations section of the Company's website at https://www.amtechsystems.com/investors/events shortly after the conclusion of the call and will remain available for approximately 30 calendar days. About Amtech Systems, Inc. Amtech Systems, Inc. (NASDAQ: ASYS) provides equipment, consumables and services for AI semiconductor device packaging and advanced wafer substrate fabrication. Our products include advanced packaging and electronics assembly equipment for applications such as AI GPUs and advanced automotive electronics. Consumable and other solutions are used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon (Si) power devices, digital and analog devices, power electronic packages, advanced semiconductor packages and electronic assemblies. We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe. To learn more about Amtech, please visit our website at https://www.amtechsystems.com. Cautionary Note Regarding Forward-Looking Statements Certain information contained in this press release is forward-looking in nature, including preliminary and estimated financial results, which are based on the Company's current expectations and are subject to completion of its quarter-end closing procedures. All statements in this press release, or made by management of Amtech Systems, Inc. and its subsidiaries ("Amtech"), other than statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the PSLRA. Forward-looking statements include, but are not limited to, statements regarding our plans, strategies and prospects, both business and financial, including statements about our future financial or operating results, revenue and operating performance, market outlook, customer demand and product development, growth initiatives, cost reduction strategies and capital allocation, demand for AI-related semiconductor packaging equipment, delivering profitable growth, creating long-term value for our shareholders, long-term future prospects, business strategies, projected costs, the optimization and reduction of structural costs, products under development, competitive positions, plans and objectives of management for future operations, efforts to improve operational efficiencies, and enhancements to our technologies and expansion of our product portfolio. Forward-looking statements give our current expectations or forecasts of future events. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may use words such as "may," "plan," "anticipate," "seek," "will," "expect," "intend," "estimate," "believe," "continue," "predict," "potential," "project," "should," "would," "could," "likely," "future," "target," "forecast," "goal," "observe," "strategy," "opportunities," "committed," "on track" or the negative thereof or variations thereon or similar terminology. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. The Form 10-K that Amtech filed with the Securities and Exchange Commission (the "SEC") for the most recently completed fiscal year-ended September 30, listed various important factors that could affect the Company's future operating results and financial condition and could cause actual results to differ materially from historical results and expectations based on forward-looking statements made in this document or elsewhere by Amtech or on its behalf. These factors can be found under the heading "Risk Factors" in the Form 10-K and in our subsequently filed Quarterly Reports on Form 10-Qs, and investors should refer to them. Because it is not possible to predict or identify all such factors, any such list cannot be considered a complete set of all potential risks or uncertainties. Except as required by law, we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise. Amtech Systems may use its website (www.amtechsystems.com), investor relations page (https://www.amtechsystems.com/investors), and LinkedIn page (https://www.linkedin.com/company/amtechsystems) to disclose material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors and other interested parties should monitor these sites, in addition to following Amtech Systems press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public presentations/webcasts. In discussing financial results in this press release, the Company refers to certain financial measures that are not calculated in accordance with United States generally accepted accounting principles ("GAAP"). Non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), and Adjusted EBITDA. These non-GAAP measures are provided as a supplement to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Management uses these non-GAAP financial measures to evaluate the Company's core operating performance and to facilitate period-to-period comparisons. Non-GAAP amounts exclude certain adjustments which may include but are not limited to stock compensation expense, severance expense, expenses related to discontinued product lines, gain on the sale of assets, moving expenses, amortization of acquired intangible assets, acquisition expenses, goodwill and intangible asset impairment, inventory write-down of mature node semiconductor products, right-of-use asset impairment from sublease, disposal of fixed assets from sublease and any income tax changes related to acquisitions. A tabular reconciliation of financial measures prepared in accordance with GAAP to the non-GAAP financial measures is included at the end of this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805842439/en/ Contacts Amtech Systems, Inc.Thomas SabolChief Financial [email protected] Darrow AssociatesJordan Darrow(631) [email protected]

Amtech Systems (ASYS) came out with quarterly earnings of $0.14 per share, beating the Zacks Consensus Estimate of $0.1 per share. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +40.00%. A quarter ago, it was expected that this provider of equipment for solar panel and semiconductor makers would post earnings of $0.05 per share when it actually produced earnings of $0.1, delivering a surprise of +100%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Amtech, which belongs to the Zacks Semiconductor - General industry, posted revenues of $22.38 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.11%. This compares to year-ago revenues of $19.56 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Amtech shares have added about 39% since the beginning of the year versus the S&P 500's gain of 13%. While Amtech has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Amtech was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.13 on $22.5 million in revenues for the coming quarter and $0.32 on $83.4 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductor - General is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Nvidia (NVDA), has yet to report results for the quarter ended July 2026. The results are expected to be released on August 26. This maker of graphics chips for gaming and artificial intelligence is expected to post quarterly earnings of $2.09 per share in its upcoming report, which represents a year-over-year change of +99.1%. The consensus EPS estimate for the quarter has been revised 0.8% higher over the last 30 days to the current level. Nvidia's revenues are expected to be $91.71 billion, up 96.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amtech Systems, Inc. (ASYS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Amtech Systems, Inc.? Here are five stocks we like better. Strong AI-driven growth: Fiscal Q3 revenue rose 14% year over year to $22.4 million, while Thermal Processing Solutions revenue increased nearly 25% and AI-related sales in the segment grew about 120%. Consolidated gross margin improved to 50%, and adjusted EBITDA reached $3.3 million. Mixed segment performance: Thermal Processing Solutions posted a book-to-bill ratio near 1.4, with backlog building into fiscal 2027 and a new order for AI semiconductor cooling equipment. However, Semiconductor Fabrication Solutions revenue fell more than 13% due to continued weakness in silicon carbide, a market Amtech now considers structurally challenged. Strengthened finances and leadership transition: Amtech ended the quarter with $83.1 million in cash and no debt after a $60 million equity offering, positioning it for potential acquisitions. Guy Shechter will become CEO as Bob Daigle moves to executive chairman, while fourth-quarter revenue guidance calls for $22.5 million to $24 million. Amtech Systems (NASDAQ:ASYS) reported fiscal 2026 third-quarter revenue of $22.4 million, up 14% from the prior-year period and at the top end of its guidance range, as demand for artificial intelligence-related equipment supported growth in its Thermal Processing Solutions business. Chairman and Chief Executive Officer Bob Daigle said revenue growth was partly offset by weaker sales in the company’s Semiconductor Fabrication Solutions segment. AI-related revenue in Thermal Processing Solutions increased about 120% year over year, while consolidated gross margin rose to 50% from 46.7% a year earlier. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control The company reported GAAP net income of approximately $1.7 million, or $0.10 per diluted share, compared with approximately $100,000, or $0.01 per share, in the prior-year quarter. Adjusted EBITDA was $3.3 million, approaching 15% of sales, according to management. Thermal Processing Solutions revenue was approximately $17.7 million, an increase of nearly 25% year over year. Daigle said equipment used in AI-related applications represented more than 40% of segment revenue during the quarter, while parts and services revenue increased roughly 30% from the prior-year period. → 3 Drone Stocks That Should Soar After the Summer Slump The segment’s book-to-bill ratio approached 1.4, marking the third consecutive quarter in which it exceeded one. Chief Financial Officer Thomas Sabol said the company’s backlog is building for the fiscal fourth quarter and into the first and second quarters of fiscal 2027. Management attributed demand to continued investments by semiconductor manufacturers, outsourced semiconductor assembly and test providers, and other participants in the AI supply chain. Daigle said advanced packaging remains important for increasingly complex semiconductor designs and that customers are seeking equipment with high yields, throughput and repeatable process performance. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure During the quarter, Amtech received its first order for equipment used to manufacture cooling components for AI semiconductors. Daigle said the application is intended to remove heat directly from semiconductors in data centers and expands the company’s AI infrastructure exposure beyond advanced packaging and server board assembly. He cautioned that it was too early to quantify the opportunity, saying its scale will depend in part on the success of the customer building a process around Amtech’s equipment. Semiconductor Fabrication Solutions revenue totaled $4.6 million, down more than 13% year over year. The decline was driven primarily by weaker demand for PR Hoffman templates used in silicon carbide substrate manufacturing. Daigle said the company does not expect a meaningful recovery in demand for its silicon carbide products due to what he described as structural changes in that market. In response, Amtech has de-emphasized silicon carbide and restructured the business accordingly. The company is instead focusing its Semiconductor Fabrication Solutions strategy on underserved customers and applications, including specialty chemicals and parts and services for mature-node semiconductor manufacturing. At Entrepix, the parts and service business posted 19% year-over-year revenue growth during the quarter. Management said it has built a pipeline for its specialty chemicals business and expects incremental improvement from those efforts in coming quarters, though Daigle noted that converting opportunities takes time. Amtech ended the quarter with $83.1 million in unrestricted cash and cash equivalents and no debt. The cash balance included $56.5 million in net proceeds from an oversubscribed $60 million public offering of common stock completed in June. Excluding the capital raise, Daigle said cash increased $2.2 million from the prior quarter and $11 million from the prior year. The company generated $1.1 million in operating cash flow during the quarter, supported by operational cash generation, working-capital management and customer collections. The company added $1.7 million in inventory from the beginning of the fiscal year to support higher backlog and order flow in Thermal Processing Solutions. Amtech did not repurchase shares during the quarter under its $5 million stock repurchase program, and no shares have been repurchased since the program was established in December 2025. Daigle said management raised capital opportunistically to strengthen the balance sheet ahead of potential acquisitions that could supplement organic growth. He said any acquisition would need to be synergistic and generate an attractive return on invested capital. Amtech also announced that Daigle will transition from chairman and chief executive officer to executive chairman after three years in the dual role. Guy Shechter, previously president and chief operating officer, will become chief executive officer and join the company’s board. Shechter said he brings more than 25 years of leadership experience in semiconductor and advanced-packaging equipment industries, including prior senior roles at Yield Engineering Systems and Veeco Instruments. He said Amtech plans to strengthen its core businesses, broaden its technology portfolio and increase its involvement in customer manufacturing process steps tied to AI-driven semiconductor production. For the fiscal fourth quarter ending Sept. 30, Amtech expects revenue of $22.5 million to $24 million and adjusted EBITDA margins in the low-to-mid-teens. Management expects AI-related Thermal Processing Solutions equipment to account for well over 40% of segment sales in the fourth quarter. The company plans to introduce new equipment platforms and process capabilities for emerging semiconductor applications and higher-density packaging at the SEMICON Taiwan trade show in early September. Management said the products are expected to expand Amtech’s addressable market, though the pace of customer adoption will become clearer after their introduction. Amtech Systems, Inc is a global supplier of capital equipment and aftermarket parts for the solar photovoltaic and semiconductor industries. The company's solutions support key steps in wafer and cell production, offering both new machinery and spares designed to optimize yield, throughput and energy efficiency. Amtech operates through two primary segments: solar manufacturing and semiconductor & electronics packaging. In its solar segment, Amtech provides diffusion furnaces, epitaxy reactors and plasma-enhanced chemical vapor deposition (PECVD) systems used in high-volume solar cell fabrication. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Amtech Systems Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Amtech Systems ASYS is set to report its third-quarter fiscal 2026 results on Aug. 5.The company projects third-quarter fiscal 2026 revenues of $20.5-$22.5 million. At the midpoint of the guidance range, revenues are expected to post meaningful year-over-year and sequential growth.The Zacks Consensus Estimate for third-quarter fiscal revenues is currently pegged at $21.5 million, indicating a 9.92% increase from the figure reported in the year-ago quarter.The consensus mark for earnings is pegged at 10 cents per share, unchanged over the past 30 days. This projection indicates growth of 66.67% from the year-ago quarter’s reported figure. Image Source: Zacks Investment Research Amtech’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an impressive average earnings surprise of 162.8%. Amtech Systems, Inc. price-eps-surprise | Amtech Systems, Inc. Quote Our proven model does not conclusively predict an earnings beat for Amtech this time. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as you can see below.Amtech has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Amtech’s exposure to AI semiconductor packaging continued to expand as demand for advanced packaging and AI server board assembly equipment remained robust during the quarter. The company highlighted strong bookings for AI applications, supported by its differentiated TrueFlat technology and superior temperature uniformity, while expecting AI-related sales to exceed 40% of Thermal Processing Solutions revenues in the fiscal third quarter. These trends indicate that accelerating AI infrastructure investments likely boosted order conversion and product shipments, enabling the company to deliver stronger revenue growth and an improved sales mix during the quarter to be reported.Amtech's business transformation continued to improve operating leverage through product-line rationalization, a semi-fabless manufacturing model and a greater mix of higher-margin AI advanced packaging equipment and recurring parts and services. Management noted that these initiatives expanded gross margins, strengthened cash generation and enabled the company to support higher production with little or no incremental capital expenditure. In addition, Amtech guided for fiscal third-quarter revenues of $20.5-$22.5 million and adjusted EBITDA margins in the low double digits, reflecting the benefits of structural cost reductions and recurring revenues. Consequently, these factors are expected to have strengthened profitability and operating leverage in the quarter under review.Amtech continued investing in next-generation advanced packaging solutions to address higher-density semiconductor applications as customer interest in panel-level packaging increased through stronger quoting activity and bookings. The company planned to launch its first higher-density packaging system at the SEMICON Taiwan trade show in early September, noting that the new platform would significantly expand ASYS’ addressable market and support emerging customer requirements. Backed by robust AI infrastructure demand and ongoing technology innovation, this product introduction is expected to have strengthened customer engagement, expanded growth opportunities and supported commercial momentum during the fiscal third quarter.However, the company highlighted that escalating geopolitical tensions, including the conflict involving Iran, could disrupt semiconductor supply chains through higher energy costs, shipping delays, trade restrictions and weaker customer capital spending. Given Amtech's significant exposure to Asian semiconductor customers and globally integrated supply chains, these uncertainties could delay equipment shipments or customer investment decisions. Therefore, geopolitical and supply-chain disruptions are anticipated to have created headwinds for third-quarter fiscal 2026 revenue visibility and execution. Despite gaining 22.3% year to date, outperforming the industry’s 14.8% rise and the sector’s 11.7% increase, Amtech has trailed several leading semiconductor peers. Intel INTC, STMicroelectronics STM and Texas Instruments TXN have significantly outperformed, with their shares surging 144.5%, 102% and 59%, respectively, over the same period. While ASYS has delivered solid returns, investors may view the stronger stock performance of Intel, STMicroelectronics and Texas Instruments as evidence that these peers have benefited more from favorable trends in the semiconductor market. Image Source: Zacks Investment Research Amtech appears to offer an attractive entry point from a valuation perspective. The stock trades at a forward 12-month price-to-sales (P/S) ratio of 2.4X, well below the industry average of 9.26X. ASYS is also valued below key semiconductor peers, with Intel, STMicroelectronics and Texas Instruments trading at forward 12-month P/S multiples of 6.79X, 2.98X and 10.89X, respectively. This discounted valuation could appeal to investors seeking exposure to the semiconductor equipment space at a relatively attractive price. Image Source: Zacks Investment Research Amtech enters third-quarter fiscal 2026 with improving fundamentals, supported by strong AI-driven demand for advanced packaging equipment, robust bookings, expanding recurring parts and services revenues, higher gross margins and operating leverage from its semi-fabless manufacturing model. The planned launch of next-generation higher-density packaging equipment and growing panel-level packaging opportunities further strengthen its growth outlook. Yet, weak demand for certain silicon carbide-related products, limited order visibility due to short lead times and continued softness in parts of the Semiconductor Fabrication Solutions business remain headwinds. Amtech's AI-driven growth, improving margins, strong bookings and attractive valuation support its long-term outlook. However, limited order visibility, weakness in parts of its Semiconductor Fabrication Solutions business and geopolitical uncertainties may constrain near-term performance. While the company's long-term growth outlook remains encouraging, a hold stance on ASYS stock appears appropriate ahead of the third-quarter fiscal 2026 results.You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amtech Systems, Inc. (ASYS) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report STMicroelectronics N.V. (STM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Intel (INTC) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to a loss of $0.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this world's largest chipmaker would post earnings of $0.01 per share when it actually produced earnings of $0.29, delivering a surprise of +2800%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Intel, which belongs to the Zacks Semiconductor - General industry, posted revenues of $16.13 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 11.89%. This compares to year-ago revenues of $12.86 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Intel shares have added about 178.1% since the beginning of the year versus the S&P 500's gain of 9.6%. While Intel has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Intel was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.25 on $15.08 billion in revenues for the coming quarter and $1.07 on $58.71 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Semiconductor - General is currently in the top 3% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Amtech Systems (ASYS), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This provider of equipment for solar panel and semiconductor makers is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +66.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Amtech Systems' revenues are expected to be $21.5 million, up 9.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Amtech Systems, Inc. (ASYS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TEMPE, Ariz., July 22, 2026--(BUSINESS WIRE)--Amtech Systems, Inc. ("Amtech") (NASDAQ: ASYS), a manufacturer of equipment and consumables enabling AI semiconductor device packaging and advanced substrate fabrication, will announce financial results for its fiscal 2026 third quarter ended June 30, 2026 on August 5, 2026 after market close. Amtech Systems will host a conference call at 5:00 pm ET on August 5, 2026 to discuss fiscal 2026 third quarter financial results. The call will be available to interested parties by dialing 1-412-365-5127. A live webcast of the conference call will be available in the Investor Relations section of Amtech’s website at: https://www.amtechsystems.com/investors/events. A replay of the webcast will be available in the Investor Relations section of the company’s website at https://www.amtechsystems.com/investors/events shortly after the conclusion of the call. About Amtech Systems, Inc. Amtech Systems, Inc. (NASDAQ: ASYS) provides equipment, consumables and services for AI semiconductor device packaging and advanced wafer substrate fabrication. Our products include advanced packaging and electronics assembly equipment for applications such as AI GPUs and advanced automotive electronics. Consumable and other solutions are used in fabricating semiconductor devices, such as silicon carbide (SiC) and silicon (Si) power devices, digital and analog devices, power electronic packages, advanced semiconductor packages and electronic assemblies. We sell these products to semiconductor device and module manufacturers worldwide, particularly in Asia, North America and Europe. To learn more about Amtech, please visit our website at https://www.amtechsystems.com. Amtech Systems may use its website (www.amtechsystems.com), investor relations page (https://www.amtechsystems.com/investors), and LinkedIn page (https://www.linkedin.com/company/amtechsystems) to disclose material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors and other interested parties should monitor these sites, in addition to following Amtech Systems press releases, Securities and Exchange Commission (SEC) filings, public conference calls and public presentations/webcasts. View source version on businesswire.com: https://www.businesswire.com/news/home/20260722640285/en/ Contacts Investor Relations Contact: Darrow AssociatesJordan [email protected]

Texas Instruments Incorporated TXN is likely to beat earnings estimates when it releases its second-quarter 2026 results on July 22, after market close. The company anticipates revenues between $5 billion and $5.4 billion for the second quarter. The Zacks Consensus Estimate is pegged at $5.23 billion, suggesting growth of 17.5% from the year-ago period's reported figure. Texas Instruments expects earnings per share between $1.77 and $2.05. The Zacks Consensus Estimate for second-quarter earnings is pinned at $1.91 per share, implying growth of 35.5% from the year-ago period's reported figure. The consensus mark for earnings has been revised upward over the past seven days. Image Source: Zacks Investment Research TXN’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 6.96%. Texas Instruments Incorporated price-eps-surprise | Texas Instruments Incorporated Quote Our proven model predicts an earnings beat for Texas Instruments this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. Earnings ESP of TXN: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.96) and the Zacks Consensus Estimate ($1.91), is +2.66%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Texas Instruments’ Zacks Rank: TXN presently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Texas Instruments’ second-quarter performance is likely to have benefited from strong demand for its analog and embedded chips. The company’s analog business remains the largest contributor, which is showing renewed strength supported by improving industrial demand, stronger data center investments and stable automotive sales. Industrial revenues rose more than 30% year over year in the first quarter of 2026, with growth spreading across regions and customer groups. At the same time, Texas Instruments is benefiting from rising demand for power-management chips used in artificial intelligence (AI)-driven data center infrastructure. During the first-quarter earnings call, management stated that data center revenues surged roughly 90% year over year. Overall, analog revenues increased 22% year over year to $3.92 billion, and the trend is likely to have continued in the second quarter. Our model estimates for the analog division’s second-quarter revenues are pegged at $4.08 billion, indicating 18.1% year-over-year growth. Gradually improving end-market demand and easing customer inventory adjustments are likely to have aided growth in the embedded processing business during the second quarter. The segment is anticipated to have benefited from improving industrial demand and increasing semiconductor content across connected devices, vehicles and factory automation. In the first quarter, embedded processing revenues increased 12% year over year to $723 million. The growth rate is likely to have accelerated in the second quarter. Our model estimates for the embedded processing division’s second-quarter revenues are pegged at $799 million, indicating 17.7% year-over-year growth. However, Texas Instruments’ second-quarter performance is likely to have been affected by rising geopolitical tensions, and the ongoing U.S.-China trade and tariff wars. TXN is a major player in China, accounting for more than 20% of its annual revenues in 2025. Texas Instruments shares have surged 68.3% year to date, outperforming the Zacks Semiconductor – General industry, which has risen 22.7%. Compared to other industry peers, the stock has outpaced NVIDIA Corporation NVDA and Amtech Systems, Inc. ASYS but has underperformed Intel Corporation INTC. Shares of NVIDIA, Amtech Systems and Intel have soared 11%, 33.2% and 162.3%, respectively. Image Source: Zacks Investment Research Let us look at the value Texas Instruments offers investors at current levels. Currently, TXN is trading at a premium, with a forward 12-month P/E of 35.26X compared with the industry’s 22.94X. Image Source: Zacks Investment Research Compared with semiconductor giants, the stock trades at a higher multiple than NVIDIA and Amtech Systems, while at a lower multiple than Intel. At present, NVIDIA, Amtech Systems and Intel have forward 12-month P/E of 19.63X, 23.87X and 76.49X, respectively. Unlike NVIDIA or AMD, Texas Instruments does not build AI accelerators. Instead, it supplies the analog and embedded chips that keep AI infrastructure running. Its products manage power, convert signals, control motors, regulate cooling systems and enable connectivity across data centers, industrial equipment and automotive applications. These components may receive less attention than AI processors, but they are essential as AI servers become more power-hungry and increasingly complex. Every new AI data center requires far more power management and sensing components than traditional computing infrastructure. This is creating a meaningful opportunity for Texas Instruments. Rather than competing in the crowded AI processor market, the company is benefiting from the broader AI infrastructure buildout — a trend that could prove more durable over time. The company's data center business reached an annual revenue run rate of roughly $1.2 billion in 2025, growing more than 50% year over year. In the first quarter of 2026, data center revenues jumped 90% from the prior-year period and increased 25% sequentially. These growth rates highlight the company’s growing importance in AI infrastructure and suggest that this market could remain a major contributor for years. Texas Instruments is also taking a different approach to manufacturing than many semiconductor companies. Instead of relying heavily on external foundries, management plans to manufacture more than 95% of its wafers internally by 2030. This strategy requires significant investment today but offers several long-term advantages. Greater manufacturing control can improve supply-chain reliability, reduce production costs over time and protect margins during industry shortages. TXN is benefiting from rising AI infrastructure spending, rapidly expanding data center demand and a manufacturing strategy that should continue aiding its financial results. With AI infrastructure spending still in the early stages of a multi-year expansion cycle, Texas Instruments looks well-positioned to deliver steady growth for years to come. Although the stock trades at a premium valuation, that premium appears justified, given its consistent earnings growth. All these make Texas Instruments stock worth holding. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Texas Instruments Incorporated (TXN) : Free Stock Analysis Report Intel Corporation (INTC) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Amtech Systems, Inc. (ASYS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research