A Look At Advanced Energy Industries (AEIS) Valuation As It Joins The S&P MidCap 400 Index

Index move puts Advanced Energy Industries in focus

Advanced Energy Industries (AEIS) is set to join the S&P MidCap 400, replacing Comerica, following a period of notable share price performance and earnings growth that has drawn fresh investor attention.

This index shift can affect who owns the stock, how closely it is tracked, and how investors weigh its recent earnings surprises relative to its current valuation and return profile.

See our latest analysis for Advanced Energy Industries.

The latest share price of US$263.76 comes after a 21.40% 30 day share price return and a 28.28% 90 day share price return. The 1 year total shareholder return of 134.82% and 3 year total shareholder return of 171.69% point to momentum that has been building rather than fading.

If this kind of momentum has your attention, it could be a good moment to widen your watchlist with high growth tech and AI stocks as potential peers to compare against Advanced Energy Industries.

With AEIS now trading near its analyst price target and carrying a value score of 0, the key question is whether recent earnings strength and index inclusion still leave headroom or if the market is already pricing in future growth.

Most Popular Narrative: 30% Overvalued

Advanced Energy Industries last closed at $263.76 compared with a narrative fair value of $263, which frames the current rally against a relatively tight valuation anchor.

Recent research points to a more constructive setup for Advanced Energy Industries, with several price target increases and at least one rating upgrade helping to reset expectations for revenue, margins, and P/E assumptions linked to semiconductor and datacenter exposure.

Read the complete narrative.

Curious what kind of revenue ramp, margin lift, and future earnings multiple are baked into that fair value number? The narrative leans on faster growth, richer profitability, and a higher P/E in a few years. Want to see exactly how those pieces fit together and what has to go right for this price to hold up?

Result: Fair Value of $263 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, those assumptions can crack if hyperscale customers pull back on data center orders, or if tariffs and semiconductor slowdowns pressure margins more than expected.

Find out about the key risks to this Advanced Energy Industries narrative.

Build Your Own Advanced Energy Industries Narrative

If you see the story differently or would rather test the numbers yourself, you can build a custom view in just a few minutes with Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Advanced Energy Industries.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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