Advanced Energy Industries, Inc. (AEIS): History, Ownership, Mission, How It Works & Makes Money

When a company like Advanced Energy Industries, Inc. (AEIS) posts a 113% year-over-year surge in a core segment, do you defintely understand what's driving that kind of explosive growth in precision power solutions? This global leader in power conversion technology just delivered its second-best quarterly earnings per share (EPS) performance in history, reporting a non-GAAP EPS of $1.74 in Q3 2025 alone, representing a 78% jump from the year-ago quarter. The simple truth is that the world's insatiable demand for artificial intelligence (AI) infrastructure and massive data centers is directly translating into record revenue-specifically, $172 million in Q3 2025 Data Center Computing revenue-making their story a crucial read for anyone tracking the real-world economics of the AI boom. If you want to map that near-term opportunity to a clear investment thesis, you need to look past the ticker and into the engine room of their business model.

Advanced Energy Industries, Inc. (AEIS) History

You need to understand the roots of Advanced Energy Industries, Inc. (AEIS) to grasp its current strategic focus on precision power conversion. The company didn't start as a diversified giant; it began as a specialized technology provider for the demanding semiconductor industry, and its history is a series of calculated pivots to maintain market relevance.

Given Company's Founding Timeline

Year established

1981

Original location

Fort Collins, Colorado, USA

Founding team members

The company was founded by Doug Schatz, along with a group of individuals closely associated with Colorado State University.

Initial capital/funding

Specific initial funding details from 1981 are not publicly detailed, but early capital support typically came from local investors and potential research grants tied to the university association. The early focus was on developing RF power supplies for plasma processes, a niche that quickly established its value in the booming semiconductor market.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been defined by three major shifts: the initial specialization, the aggressive diversification, and the recent sharp focus on next-generation power solutions.

Honestly, the 2019 acquisition of the Embedded Power business from Artesyn was the most transformative decision. It immediately diversified the revenue base, which had been heavily concentrated in the cyclical semiconductor market, into data centers and industrial applications. This move gave them resilience.

The 2021 solar divestiture was a crucial move in portfolio optimization. It cut a lower-margin business to double down on precision power, which is where the core expertise lies. This is a classic example of a company Exploring Advanced Energy Industries, Inc. (AEIS) Investor Profile: Who's Buying and Why? by sharpening its competitive edge.

The near-term opportunity is defintely in Data Center Computing. Here's the quick math on the 2025 fiscal year performance:

• Q3 2025 Revenue hit $463 million, beating guidance.
• Non-GAAP Earnings Per Share (EPS) for Q3 2025 was $1.74, a 78% jump from the prior year.
• Management expects full-year 2025 revenue growth to be approximately 20%, with Data Center revenue expected to double for the year.

What this estimate hides is the continued softness in the core Semiconductor segment, which is why the Data Center growth is so critical right now. The company is investing heavily, with 2025 capital expenditure expected to be at the high end of the 5% to 6% of sales range to expand data center capacity.

Advanced Energy Industries, Inc. (AEIS) Ownership Structure

Advanced Energy Industries, Inc. (AEIS) is a publicly traded company on the NASDAQ Global Select Market, and its ownership is heavily concentrated among institutional investors.

This structure means that large asset managers and funds, not individual retail investors, hold the majority of the voting power, which defintely influences long-term strategic decisions and governance, especially around capital allocation and executive pay.

Advanced Energy Industries' Current Status

Advanced Energy Industries is a Public company, trading under the ticker symbol AEIS on the NASDAQ exchange. As of the end of October 2025, the company's market capitalization stood at approximately $7.65 billion, with roughly 37.7 million total shares outstanding.

The stock price as of November 3, 2025, was around $205.61 per share, reflecting an increase of over 86% from the prior year. This public status mandates strict reporting to the Securities and Exchange Commission (SEC), providing transparency into its operations and ownership for all stakeholders.

Advanced Energy Industries' Ownership Breakdown

The company's ownership profile is typical for a large-cap technology firm, dominated by institutional money. Approximately two-thirds of the company is held by professional investment entities, which is a powerful block of shareholders that management must satisfy.

Here's the quick math on who controls the shares, based on recent 2025 filings:

The two largest institutional holders, BlackRock, Inc. and Vanguard Group Inc., collectively hold a significant stake, with BlackRock owning over 5.69 million shares and Vanguard holding more than 4.87 million shares as of the third quarter of 2025. These positions give them substantial influence in proxy votes and corporate governance matters.

Advanced Energy Industries' Leadership

The company is steered by an experienced leadership team with an average tenure of nearly five years. This stability in the executive suite is a positive sign for consistent strategy execution, particularly as the company focuses on high-growth areas like data center computing and semiconductor manufacturing. You can find a deeper dive into their guiding principles here: Mission Statement, Vision, & Core Values of Advanced Energy Industries, Inc. (AEIS).

The key executives and board members responsible for day-to-day operations and strategic oversight as of November 2025 include:

• Steve Kelley: President and Chief Executive Officer (CEO). His total compensation for the 2024 fiscal year was $8.76 million.
• Paul Oldham: Executive Vice President and Chief Financial Officer (CFO).
• Eduardo Bernal Acebedo: Executive Vice President and Chief Operations Officer (COO).
• Elizabeth Karpinski Vonne: Executive Vice President, General Counsel, and Corporate Secretary.
• Grant H. Beard: Independent Chairman of the Board.

The management team's focus on diversifying end-markets-semiconductor, data center computing, and industrial/medical-is a clear strategy to mitigate industry-specific risks and stabilize cash flow, which is a smart move.

Advanced Energy Industries, Inc. (AEIS) Mission and Values

Advanced Energy Industries, Inc.'s core purpose transcends simply selling precision power solutions; it is fundamentally about enabling customer breakthroughs by delivering highly engineered technology and driving sustainable growth as a recognized industry leader. The company's cultural DNA is built on six core values that guide its execution, especially as it targets gross margins of 39% to 40% by year-end 2025.

Advanced Energy Industries, Inc.'s Core Purpose

The company focuses on providing mission-critical power conversion, measurement, and control solutions for complex applications, which is why their revenue for Q3 2025 hit a strong $463.30 million. This commitment to precision is what allows customers in semiconductor, data center computing, and industrial markets to innovate. Honestly, without this kind of reliable, high-performance power, the AI data center surge we're seeing wouldn't be possible.

• Innovation: Thinking beyond the ordinary to create unique, high-quality, reliable solutions.
• Integrity: Acting with respect, doing the right thing, and building trusting relationships.
• Empowerment: Giving people the authority to leverage their diverse talent and ambitions.
• Partnership: Collaborating with customers and stakeholders for shared, win-win outcomes.
• Accountability: Owning actions, decisions, and commitments, and the resulting outcomes.
• Execution: Delivering on commitments because it is fundamental to their mission and credibility.

Official mission statement

The official mission statement is a clear, actionable directive that focuses the entire organization on the customer's success in high-stakes environments.

• Enable customer innovation by delivering highly engineered, applications-critical, precision power & control solutions.

Here's the quick math: the focus on innovation is backed by real money, with R&D expenses at $59.1 million for the third quarter of 2025 alone. That investment is defintely critical for keeping their technology on the cutting edge.

Vision statement

The vision statement maps out the long-term aspiration-to be the undisputed global leader in their niche, which supports their strategy to grow revenue faster than the market, with an outlook of 20% total revenue growth for the full year 2025.

• Drive sustainable growth as the recognized world leader & trusted partner in precision power technology and applications.

This vision is about market dominance through trust, not just volume, so they are strategically positioned for the next wave of technology adoption. You should read more about the investor perspective in Exploring Advanced Energy Industries, Inc. (AEIS) Investor Profile: Who's Buying and Why?

Advanced Energy Industries, Inc. slogan/tagline

The company uses a powerful, concise tagline that distills its value proposition down to four core attributes, plus they often reference their long history of expertise.

• Advanced Energy | Precision. Power. Performance. Trust.
• Perfecting Power for Four Decades.

Advanced Energy Industries, Inc. (AEIS) How It Works

Advanced Energy Industries, Inc. (AEIS) designs and manufactures highly engineered, precision power conversion, measurement, and control solutions that are mission-critical for complex industrial processes.

The company essentially provides the 'nervous system' of power for its customers, ensuring the precise, stable, and high-efficiency energy delivery needed to manufacture the world's most advanced semiconductors and power the massive, AI-driven hyperscale data centers driving the digital economy.

Advanced Energy Industries, Inc.'s Product/Service Portfolio

The company's revenue is diversified across four core segments, with Data Center Computing and Semiconductor Equipment being the primary growth engines, accounting for over 80% of total Q3 2025 revenue of $463.3 million.

Advanced Energy Industries, Inc.'s Operational Framework

The operational framework focuses on three clear levers: technology leadership, manufacturing efficiency, and market diversification. The goal is to drive non-GAAP gross margin toward the 39% to 40% range by the end of 2025.

Here's the quick math: achieving that margin target on Q4 2025 guidance of $470 million in revenue would yield a gross profit of up to $188 million. That's a defintely solid number.

• Global Manufacturing Shift: Completed the closure of the last China factory in June 2025, a key part of the strategy to rationalize the product portfolio and structurally raise margins.
• Geographic Expansion: Ramping up production at the new flagship factory in Thailand and qualifying products at the Mexicali facility under USMCA to mitigate tariff risks and meet growing demand, particularly for Data Center solutions.
• Intelligent Control: Integrating the proprietary PowerInsight by Advanced Energy™ IoT data ecosystem into new product platforms (like eVerest) to provide customers with high-resolution, actionable data for faster process characterization and troubleshooting.
• R&D Focus: Directing capital expenditure, which is expected to be at the high end of 5% to 6% of sales for 2025, primarily toward expanding data center capacity and developing next-generation semiconductor platforms.

Advanced Energy Industries, Inc.'s Strategic Advantages

The company's ability to sustain growth, even with cyclical pressures in the semiconductor market, comes down to its technology moat and strategic positioning.

• Proprietary Plasma Technology: Four decades of leadership in plasma power delivery for semiconductor processing, which is crucial for etching and deposition at the atomic scale (Angstrom Era). This is a high-barrier-to-entry market.
• AI-Driven Data Center Penetration: Strong design wins with hyperscale customers, driving the Data Center Computing segment revenue to more than double in 2025. This positions Advanced Energy Industries as a critical supplier to the fastest-growing part of the computing market.
• Market Diversification: The strategic mix across Semiconductor Equipment, Data Center Computing, and Industrial & Medical helps mitigate the inherent cyclicality of any single market, enabling more consistent profitability.
• Next-Generation Product Platforms: New technologies like eVos and eVerest are gaining customer acceptance and are expected to drive meaningful market share gains in conductor and dielectric etch, which represents a new growth area for the company.

For a deeper dive into the company's long-term vision, you should review their Mission Statement, Vision, & Core Values of Advanced Energy Industries, Inc. (AEIS).

Next step: Finance should model the impact of the Thailand factory ramp on Q1 2026 gross margins, factoring in the expected tariff increases.

Advanced Energy Industries, Inc. (AEIS) How It Makes Money

Advanced Energy Industries, Inc. makes money by designing, manufacturing, and selling highly engineered, precision power conversion and control solutions that are essential for mission-critical applications across several high-growth industrial and technology markets.

Essentially, they sell the sophisticated power infrastructure-things like plasma power generators, high-voltage power supplies, and thermal equipment-that their customers need to run complex manufacturing processes or massive data centers.

Advanced Energy Industries, Inc.'s Revenue Breakdown

You can see the company's diversification strategy at work in the Q3 2025 revenue breakdown. This spread across four distinct markets helps mitigate the cyclical risks inherent in any single sector, like the semiconductor space, which is defintely a smart move.

The Data Center Computing segment is the clear growth engine right now, surging over 113% year-over-year in Q3 2025, driven almost entirely by the massive demand for AI-related infrastructure.

Business Economics

Advanced Energy Industries operates on a technology-leadership model, focusing on proprietary, high-performance products that allow them to command better pricing, especially in the Data Center and Semiconductor markets where performance is non-negotiable.

Here's the quick math on their economic fundamentals:

• Pricing Power: The company sells highly customized, mission-critical components, which gives them strong pricing leverage. If your power supply fails, the entire $100 million semiconductor fabrication tool stops. This dependency allows for premium pricing.
• Cost Structure: Gross Margin (the profit left after Cost of Goods Sold) hit 39.1% in Q3 2025, up 280 basis points year-over-year, largely due to operational efficiencies and cost savings from the closure of their China factory.
• Investment Cycle: They are in an intense capital expenditure (CapEx) phase, expecting to spend at the high end of the 5% to 6% of sales range for the full year 2025. This is for expanding data center capacity and consolidating infrastructure, including the new Thailand factory, which is designed to deliver over $1 billion in incremental yearly revenue.
• Near-Term Risk: A significant portion of the Data Center Computing revenue is concentrated among a few large hyperscale customers. While this drives huge growth, it creates a customer concentration risk if one of those customers changes their build-out plans.

Their strategy is simple: outgrow the market by selling industry-leading technology into diverse, high-end applications, which ultimately drives more consistent profits and cash flow.

Advanced Energy Industries, Inc.'s Financial Performance

The company's financial health as of late 2025 shows a clear operational turnaround and a successful pivot toward high-growth markets, especially AI-driven demand. You can dive deeper into the metrics by Breaking Down Advanced Energy Industries, Inc. (AEIS) Financial Health: Key Insights for Investors.

• Revenue Outlook: Management raised the full-year 2025 total revenue growth outlook to approximately 20% year-over-year, reflecting confidence in continued momentum.
• Profitability: Non-GAAP Earnings Per Share (EPS) for Q3 2025 was $1.74, a massive jump of 78% from the prior year, demonstrating significant operating leverage as revenue grows faster than expenses.
• Operating Efficiency: The non-GAAP Operating Margin expanded dramatically to 16.8% of sales in Q3 2025, the highest level since 2022.
• Cash Generation: Cash flow from operations was strong at $79 million in Q3 2025, which is more than double the prior year, giving them the capital to fund their aggressive CapEx plans without straining the balance sheet.

For Q4 2025, the company is guiding for revenue of approximately $470 million and a Gross Margin between 39% and 40%. This shows they expect the strong margin performance to hold, even with some sequential softness in the Semiconductor segment.

Advanced Energy Industries, Inc. (AEIS) Market Position & Future Outlook

Advanced Energy Industries is strategically positioned to capture high-growth, high-margin opportunities in the AI data center and next-generation semiconductor markets, projecting overall 2025 revenue growth of approximately 20%. The company's future trajectory hinges on successfully scaling its new manufacturing capacity and translating its deep intellectual property (IP) in precision power into market share gains against larger, more diversified competitors.

Competitive Landscape

In the highly specialized precision power conversion and control market, Advanced Energy Industries competes by focusing on complex, mission-critical applications where its engineering expertise provides a distinct advantage over commodity suppliers.

Here's the quick math: Advanced Energy Industries' trailing twelve-month (TTM) revenue as of September 30, 2025, was approximately $1.72 billion, which is a small slice of the broader power semiconductor market estimated at around $54 billion in 2025. Applied Materials, with its massive 2025 annual revenue of $28.37 billion, is a different beast, dominating the overall semiconductor capital equipment spending where AEIS is a critical component supplier. MKS Instruments, with a projected 2025 revenue of roughly $3.9 billion, is a more direct peer in the plasma and control space.

Opportunities & Challenges

You're seeing Advanced Energy Industries make clear, capital-intensive moves to capture the AI boom, but still, they must navigate the cyclical nature of their core markets. The company is defintely betting big on its new factory footprint.

Industry Position

Advanced Energy Industries holds a critical, enabling role in its markets, acting as a technology leader in power architecture rather than a volume component manufacturer. They are not the biggest, but they are often the most specialized.

• Technology Leadership: The company's four decades of expertise in precision power conversion, measurement, and control gives them the most extensive portfolio in the space, allowing them to target high-value, differentiated applications.
• Strategic Diversification: A core strategy is leveraging different business cycles across Semiconductor, Data Center Computing, and Industrial & Medical (I&M) to generate more consistent profits and cash flow. The I&M and Telecom/Networking segments are also showing sequential growth.
• Financial Health: Strong operational execution led to a Q3 2025 non-GAAP gross margin of 39.1%, benefiting from factory consolidation and cost savings. Cash flow from operations was robust at $79 million in Q3 2025.

For a deeper dive into the numbers underpinning this outlook, you should read Breaking Down Advanced Energy Industries, Inc. (AEIS) Financial Health: Key Insights for Investors.