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• The "Intel Inside" for advanced power and control systems.
• Texas Instruments for industrial and semiconductor power technology.

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• Precision Power Supplies: Highly engineered RF, DC, AC, and high-voltage power supplies essential for semiconductor manufacturing, industrial processes, and medical equipment.
• Plasma Power Delivery Systems: Specialized power generators and matching networks designed to create and control plasma for advanced material processing in semiconductor and industrial markets.
• Temperature Measurement and Control Solutions: A range of pyrometers, thermal imagers, and controllers providing accurate non-contact temperature monitoring and regulation for high-temperature industrial and semiconductor processes.

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Advanced Energy Industries (symbol: AEIS) primarily sells to other companies (Business-to-Business or B2B).

According to its Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission, Advanced Energy Industries does not have any single customer that accounts for 10% or more of its net sales for the fiscal years ended December 31, 2023, 2022, or 2021. This indicates a diversified customer base across various industries rather than reliance on a few individually "major" customers that are required to be disclosed by name.

Therefore, Advanced Energy does not disclose specific "major customer" names as per financial reporting requirements.

However, the company serves a broad base of original equipment manufacturers (OEMs) and end-users across several key industries. These industries effectively represent the primary categories of companies that constitute its customer base:

• Semiconductor Equipment: Manufacturers of equipment used in the production of semiconductors.
• Industrial: Companies in diverse industrial sectors requiring precision power, thermal, or plasma solutions for their manufacturing processes and products.
• Medical & Scientific: Manufacturers of medical devices and scientific instruments, as well as research institutions.
• Hyperscale Data Centers: Operators and builders of large-scale data centers that utilize Advanced Energy's power solutions for their critical infrastructure.

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Steve Kelley, President and Chief Executive Officer

Mr. Kelley joined Advanced Energy as President and Chief Executive Officer in March 2021. He previously served as President & CEO and a board member of Amkor Technology, Inc. (a publicly traded semiconductor package and test company) from May 2013 to June 2020, where he led its financial transformation. Prior to Amkor, he was Senior Advisor to Advanced Technology Investment Company, which owns GlobalFoundries. He also held executive leadership roles with Cree, Texas Instruments, and Philips Semiconductors (now NXP Semiconductors), focusing primarily on revenue growth through the timely development of new products and services.

Paul Oldham, Executive Vice President and Chief Financial Officer

Mr. Oldham joined Advanced Energy in May 2018 as Executive Vice President and Chief Financial Officer, bringing 30 years of experience in finance and administration. He previously served as Chief Financial Officer, Senior Vice President, and Corporate Secretary of Electro Scientific Industries, Inc. (ESI), a developer and manufacturer of laser-based production equipment, where he helped lead a significant multi-year transformation that resulted in strong revenue growth and profitability. Prior to ESI, he held various leadership positions at Tektronix, Inc., including Vice President of Finance and Corporate Controller, Vice President of Treasurer, and investor relations and European operations controller.

Eduardo Bernal, Executive Vice President and Chief Operations Officer

Mr. Bernal joined Advanced Energy in September 2021 as Executive Vice President and Chief Operations Officer, based in Singapore. He has over 30 years of experience managing global operations in the semiconductor industry. Before Advanced Energy, he was Senior Vice President of Assembly and Test Operations at NXP Semiconductors and held various leadership roles in operations, manufacturing, planning, and quality at Texas Instruments.

Grant H. Beard, Chairman

Mr. Beard has been the Chairman of Advanced Energy since February 2016. His past roles include Chairman, President, and Chief Executive Officer of Wolverine Advanced Materials LLC from 2012 to 2014, and President and Chief Executive Officer of Constar International Inc from 2010 to 2012. He also served as President and Chief Executive Officer of TriMas Corporation and Chairman and Chief Executive Officer of Health Media.

John Donaghey, Executive Vice President and Global Head of Sales

Mr. Donaghey joined Advanced Energy in July 2021 as Executive Vice President and Global Head of Sales, where he leads the global sales team. He has 30 years of experience in the electronics manufacturing industry, including seven years in senior sales and business leadership roles at Amkor Technology, most recently as global leader of sales.

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Advanced Energy Industries (AEIS) faces several key business risks, primarily stemming from its reliance on cyclical markets, significant customer concentration, and intense competitive pressures.

1. Dependence on Cyclical Semiconductor and Industrial Markets: Advanced Energy Industries' performance is heavily tied to the highly cyclical semiconductor and industrial markets. These markets are prone to unpredictable fluctuations and rapid technological changes, making AEIS vulnerable to downturns that can significantly impact demand for its products.
2. Customer Concentration: A substantial portion of AEIS's revenue is generated from a few large customers. For example, Applied Materials, Inc. accounted for 22% of total revenue in 2023. The loss of, or a significant reduction in business from, any of these key customers could have a material adverse effect on the company's financial condition and operational results.
3. Intense Competition and Continuous Innovation: The company operates in a highly competitive industry characterized by rapid technological advancements and evolving customer requirements. To maintain its market position and drive future growth, AEIS must continuously invest in research and development and innovate its product offerings. Failure to do so could lead to a loss of market share and strain financial resources.

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Advanced Energy Industries (AEIS) provides precision power conversion, measurement, and control solutions across several key markets globally. While specific, granular addressable market sizes for each of their exact product lines are not uniformly available in public reports, market sizes for their primary application segments can be identified.

The main products and services offered by Advanced Energy Industries include high and low voltage power systems, thermal measuring instruments, plasma power generators (DC and RF), remote plasma sources, electrostatic products, AC-DC and DC-DC power supplies, thyristor power controls, and sensing, controls, and instrumentation products. They also provide global support services, including repair, calibration, upgrades, and refurbishments.

Advanced Energy Industries primarily serves the following markets:

• Semiconductor Equipment: Advanced Energy provides precision power and control technologies critical for semiconductor manufacturing processes like dry etch and deposition. The global semiconductor manufacturing market is projected to grow from $452 billion in 2021 to $971 billion by 2028. While this represents the overall manufacturing market, it indicates a significant addressable market for component suppliers like Advanced Energy.
• Data Center Computing: Advanced Energy's high-efficiency, high-power density products are increasingly vital for AI applications and hyperscale data centers. Advanced Energy's data center business is expected to double in 2025 and grow an additional 25-30% in 2026, driven by demand for AI data center solutions. This indicates a rapidly expanding addressable market for power solutions within data centers globally.
• Industrial and Medical: The company offers power conversion and control solutions for a wide array of industrial automation, medical devices, and life sciences applications. These sectors represent a diversified global market for precision power solutions.
• Telecom and Networking: Advanced Energy is a key provider of reliable power supply solutions for telecom and network applications. This market continues to demand high conversion efficiency and cost savings in power solutions.

While a precise overall addressable market size (TAM) for all of Advanced Energy's specific products across all segments is not explicitly stated in a single figure, the global "advanced energy devices" market, which includes components and systems related to power conversion, was valued at approximately $2.15 billion in 2024 and is projected to reach $5.29 billion by 2032, with a CAGR of 11.90% during that forecast period. This market size is global.

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Advanced Energy Industries (AEIS) is poised for significant revenue growth over the next 2-3 years, driven by several key factors:

1. Accelerated Growth in Data Center Computing Driven by AI Demand: The company has reported unprecedented growth in its data center revenue, more than doubling year-over-year in Q3 2025 and projected to more than double in full-year 2025. This surge is primarily fueled by the increasing demand for AI-driven applications and hyperscale data centers. Advanced Energy anticipates further growth of 25-30% in this segment for 2026.
2. Recovery and Market Share Gains in the Semiconductor Market: Despite some near-term fluctuations, Advanced Energy expects 2025 to be its "second-best year ever" in the semiconductor segment. The company anticipates an acceleration of demand in leading-edge logic and memory processes in the second half of 2026 into 2027. This growth is expected to be driven by the adoption of its new eVoS and eVerest plasma power technologies, positioning AEIS for meaningful market share gains.
3. Expansion of Manufacturing Capacity and Operational Efficiency: A significant driver is the new flagship factory in Thailand, which is expected to commence production and has the potential to generate over $1 billion in additional yearly revenue. This strategic expansion is crucial for increasing capacity to meet growing demand in key markets and is complemented by ongoing factory consolidation efforts, including the closure of its last production site in China, which contributes to improved gross margins and operational efficiency.
4. New Product Launches and Strategic Market Diversification: Advanced Energy is actively launching new products and securing design wins across its target markets. While data center and semiconductor are prominent, the company also projects sequential growth in its Industrial and Medical segment over the next few quarters, with orders rebounding in Q1 2025 and new design wins expected to drive market share gains. Similarly, the Telecom and Networking segment is expected to see increased revenue, partly due to demand for AI-related products and new programs.

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Share Repurchases

• In August 2022, Advanced Energy Industries increased its share repurchase authorization to $200 million.
• The company repurchased $17.0 million of common stock in the second quarter of 2022.
• In Q3 2023, Advanced Energy repurchased 0.4 million shares of common stock for $40.1 million.

Share Issuance

• In September 2023, Advanced Energy completed a private offering of $575.0 million aggregate principal amount of 2.50% convertible senior notes, yielding net proceeds of approximately $561.1 million.
• The net proceeds from the convertible notes issuance were intended to fund future growth, including strategic acquisitions, opportunistic debt repayment, common stock repurchases, or general corporate purposes.

Outbound Investments

• In April 2022, Advanced Energy acquired 100% of SL Power Electronics Corporation, expanding its medical power offerings and presence in advanced industrial markets.
• In June 2024, the company acquired Airity Technologies to bolster its capabilities in high-density, high-voltage power applications across semiconductor, industrial, and medical sectors.

Capital Expenditures

• Capital expenditures were approximately $58.88 million in 2022, $61 million in 2023, and an estimated $56.79 million in 2024.
• Advanced Energy expects its 2025 capital expenditure to be at the high end of its 5% to 6% of sales range, remaining elevated for the next few quarters.
• The primary focus of these expenditures includes expanding data center capacity, improving infrastructure capability, and implementing a factory consolidation strategy, including the expansion of its Thailand facility and investments in next-generation product platforms.