Advanced Energy Industries, Inc. (NASDAQ:AEIS) is one of the stocks Jim Cramer talked about. Noting that the stock seems to be trading at a premium, a caller asked if the good news is priced in. Cramer replied:
You know, that really is the question because it’s another one like the other, like we did Forgent the other night… These are really unbelievable stocks. But they can come in, and when you buy them at the first price, you tend to be saying, oh my god, did I catch the top? Let’s do this. The stock is off 40 points from its high. I want you to wait till it’s in the 280s, 290s, and then pull the trigger. And if you miss it, you miss it.
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Advanced Energy Industries, Inc. (NASDAQ:AEIS) manufactures specialized hardware for regulating electrical power in semiconductor manufacturing and data centers, and provides thermal monitoring tools, equipment maintenance, and system refurbishments. SouthernSun Asset Management, LLC stated the following regarding Advanced Energy Industries, Inc. (NASDAQ:AEIS) in its fourth quarter 2025 investor letter:
Advanced Energy Industries, Inc. (NASDAQ:AEIS) was a top contributor in the Small Cap strategy during the quarter. AEIS provides highly engineered power conversion and control solutions for semiconductor equipment and data centers. Shares performed well after the company delivered a strong third-quarter report, exceeding the high end of guidance on the back of record Data Center Computing revenue that more than doubled year-over-year. Total revenue increased 24% year over-year and Adjusted EPS rose 78%, reflecting both growth and operating leverage. Looking ahead, we spent time with management and others in and around the space during the quarter, and management reiterated that AI-driven demand remains robust and expects Data Center Computing to grow 25–30% in 2026 on secured design wins, supported by incremental capacity in the Philippines and Mexico and a Thailand facility that is ready to ramp quickly. In Semiconductor, customer validation of the eVerest and eVoS platforms underpins our expectation for growth as leading-edge logic and memory spending is expected to strengthen into 2026–2027. The balance sheet remains strong with a $192M net cash position.
While we acknowledge the risk and potential of AEIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AEIS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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