Axcelis downgraded to Hold from Buy at Needham
The Fly

Axcelis downgraded to Hold from Buy at Needham

Needham analyst N. Quinn Bolton downgraded Axcelis to Hold from Buy without a price target and removed the shares from the firm’s Conviction List. Amid enthusiasm over exposure to generative acritical intelligence, the stock prices of many semiconductor capital equipment companies have reached new 52-week highs and, in some cases, all-time highs, the analyst tells investors in a research note. After this rally, most semi cap companies are trading near or above Needham’s prior price targets, says the firm. Needham also does not believe the surge in demand for AI systems will have a meaningful effect on foundry/logic and memory utilization rates or catalyze higher wafer fab equipment spending in the near-term. With only 10% or less upside over the next 12 months in the stock, it does not believe there is enough reward to justify buying these stocks.

Published first on TheFly

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