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    Index Move To S&P 400 Might Change The Case For Investing In Advanced Energy Industries (AEIS)

    Simply Wall St·02/02/2026 03:22:18
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    • In late January 2026, Advanced Energy Industries was removed from the S&P 600 and S&P 600 Information Technology indices and simultaneously added to the S&P 400 and S&P 400 Information Technology indices as part of an index rebalancing.
    • This index migration shifts the company into a mid-cap benchmark, potentially altering its investor base as passive funds and ETFs adjust their holdings to reflect the new index alignment.
    • Next, we examine how Advanced Energy Industries’ move from the S&P 600 to the S&P 400 could influence its investment narrative.

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    What Is Advanced Energy Industries' Investment Narrative?

    To own Advanced Energy Industries today, you need to believe in its ability to convert niche power-conversion expertise into durable demand across semiconductor, industrial and medical end-markets, while managing the cyclicality that comes with them. The shift from the S&P 600 to the S&P 400 looks more like a technical reclassification than a change to that core story, and recent price gains suggest the market has largely taken it in stride. Near term, the bigger swing factors still appear to be execution around earnings, the health of key electronics customers, and how effectively management deploys cash into acquisitions after a long-running buyback program. The index move may modestly broaden the shareholder base over time, but it does not materially alter the fundamental risks or catalysts at play.

    However, investors should be aware of how acquisition ambitions could reshape the risk profile. Advanced Energy Industries' share price has been on the slide but might be up to 15% below fair value. Find out if it's a bargain.

    Exploring Other Perspectives

    AEIS 1-Year Stock Price Chart
    AEIS 1-Year Stock Price Chart
    Simply Wall St Community members see fair values between about US$222.76 and US$263 across 2 views, highlighting how opinions differ on Advanced Energy Industries. Set those community estimates alongside the recent index migration and upcoming earnings release, and you can start to judge how shifting ownership and execution risk might influence the company’s next chapter.

    Explore 2 other fair value estimates on Advanced Energy Industries - why the stock might be worth as much as $263.00!

    Build Your Own Advanced Energy Industries Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Advanced Energy Industries research is our analysis highlighting 2 key rewards that could impact your investment decision.
    • Our free Advanced Energy Industries research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Advanced Energy Industries' overall financial health at a glance.

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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.