10 Best Tech Stocks to Invest In On the Dip

7. Axcelis Technologies, Inc. (NASDAQ:ACLS)

Share Price: $77.40

Year-To-Date Performance: -37.94%

Analyst Upside Potential: 51.75%

Axcelis Technologies, Inc. (NASDAQ:ACLS) is another technology company that specializes in designing, manufacturing, and servicing equipment used in the production of semiconductor chips.

One of the key products made by the company includes machines called ion implanters, which are essential for adding specific materials (dopants) into semiconductor wafers. The Ion implanters can be tailored for various needs including high energy, high current, and medium current depending on the requirement. In addition, it also provides maintenance services, spare parts, equipment upgrades, and consumer training services.

Purion series is one of their flagship products, which is designed to enhance chip manufacturing efficiency. During the third quarter of fiscal 2024, Axcelis Technologies, Inc. (NASDAQ:ACLS) reported revenue of $256.6 million, slightly up from the previous quarter’s $256.5 million. The revenue came from two main segments including, $201.1 million from systems sales and $55.5 million from consumables, spares, and services (CS&I). Management expects the CS&I segment to grow steadily as the company’s installed base increases, providing ongoing revenue and profitability.

China remains one of the significant markets for Axcelis Technologies, Inc. (NASDAQ:ACLS) and accounted for around 71% of total system sales, driven by demand in the image sensor market for smartphones. However, management anticipates a decline in revenue from China in the fourth quarter and early 2025 due to customers adjusting to previously built capacity.

Middle Coast Investing stated the following regarding Axcelis Technologies, Inc. (NASDAQ:ACLS) in its Q3 2024 investor letter:

“Axcelis Technologies, Inc. (NASDAQ:ACLS), the semiconductor equipment maker we own in most accounts, is also in transition. Demand for electric vehicles and hybrids has slowed, while demand for memory chips has not yet picked up. Caught in between these cycles, its shares sold off heavily this quarter, and as one of our biggest positions, that hurt our results. It is also a company with a great balance sheet, that has gained share in its sector, and that is exposed to areas of our economy that should grow for years, all while priced relatively cheaply. Micron’s earnings at the end of the quarter suggested the memory recovery is at hand.”