Axcelis Technologies Surges on Strong Earnings and Optimistic Guidance

Axcelis Technologies (ACLS) shares jumped 9.6% after the semiconductor equipment supplier reported better-than-expected earnings and provided solid forward-looking guidance. Despite year-over-year declines, the stock's rally suggests investors are betting on a cyclical recovery.

The company specializes in ion implant machines, critical for enhancing chip properties in power semiconductors and other applications. Power chips accounted for 55% of system revenue last quarter, with a notable follow-on order from an advanced logic company signaling potential expansion into new markets.

Revenue fell 24.2% to $194.5 million, while adjusted EPS dropped 35% to $1.13—both surpassing analyst estimates. Management projects sequential revenue growth to $200 million in Q3, albeit with slight margin pressure due to product mix.