Semiconductor stocks have been all the rage this year, with some of the hottest names being stalwarts like Nvidia (NVDA), Advanced Micro Devices (AMD), Qualcomm (QCOM), and Broadcom (AVGO). But there’s a European semiconductor stock that’s flying under the radar.
Aixtron (AIXXF) trades on the Frankfurt Stock Exchange, so its shares are available to U.S. investors on the over-the-counter market (OTC). But considering that the semiconductor equipment company’s shares are up 33% in the last month, it’s well worth taking a peek across the pond to see if Aixtron stock makes sense right now.
About Aixtron Stock
Based in Herzogenrath, Germany, Aixtron makes equipment for the semiconductor industry. Customers use its products to build components for electronic and optoelectronic products that are used in a wide variety of applications, technologies, and industries.
Aixtron’s products can be used in various applications, including laser and LED technologies, display devices, data transmission, power management, communication, and signaling. It has a market capitalization of $2.35 billion.
Shares have been up and down all year—despite the 33% gain in the last month, Aixtron’s share price is up only 25% so far this year. It’s also underperforming the PHLX Semiconductor Sector Index ($SOX), which is an index of 30 U.S.-traded semiconductor stocks. That index is showing a 41% gain so far this year.
The company’s valuation has gone up dramatically in recent weeks, as the price-to-earnings (P/E) ratio jumped from less than 10 to its current level of 23.6. However, that’s still below the stock’s five-year P/E mean of 30.3, so in that respect, AIXXF stock is fairly valued.
Aixtron also pays a dividend of $0.17 per share annually, which equates to a yield of about 0.8% as of this writing. However, investors should be aware that the dividend was cut by more than half earlier this year as the company announced the need to maintain and build its cash position.
Aixtron Misses on Earnings
Aixtron reported earnings for the third quarter on Oct. 30. Revenue of 119.6 million euros ($138.7 million) was down 23% from a year ago. Profits also slipped to 46.4 million euros, down 31% from a year ago. The company posted earnings per share of 0.11 euros, which was down from 0.27 euros in the same quarter of 2024, but missed analysts’ estimates by 35%.
"The demand upturn has not yet materialized in Q3/2025, such that we expect to come out at the lower half of the initial revenue guidance for the full year," CEO Felix Grawert said. "But as AI continues to reshape the semiconductor landscape, our platforms are ideally positioned to support this upcoming transformation.”
A positive, however, is that the company’s efforts to improve its cash position were successful. Aixtron reported free cash flow of 39.2 million euros, which was a massive improvement from its previous free cash flow of -1.5 million euros. The company has cash and cash equivalents of 153.4 million euros, up from 64.6 million euros at the beginning of the year.
Aixtron said its Optoelectronics segment and datacom lasers are seeing strong growth thanks to the global buildout of AI data centers. However, management cited the current soft market and a weaker U.S. dollar in its decision to lower full-year guidance from a range of 530 million euros to 600 million euros in revenue to a new range of 530 million euros to 565 million euros.
What Do Analysts Expect for AIXXF Stock?
There’s not a lot in the earnings report that would get investors excited. Company sales are slow currently, and while there are AI-related headwinds, the company hasn’t yet seen an upturn. However, the stock is up big in the last month. What gives?
The answer lies in some analyst sentiment. While Aixtron doesn’t get the analyst coverage of stocks that are trading on major U.S. exchanges, it did get an upgrade from Barclays, which upgraded its rating from “Equal Weight” to “Overweight” and raised its price target from 12 euros per share to 20 euros per share. Analysts said that continued AI growth will likely help the company’s gallium nitride business.
In addition, hedge fund Kerrisdale Capital disclosed it has a long position in Aixtron, which it called “arguably the most underappreciated AI beneficiary in the market.” Aixtron stock jumped 15% the day after Kerrisdale disclosed its position and projected more than 90% upside by 2028 in EBITDA. It also projected that the company’s revenues would increase to more than $1 billion.
What does this mean for investors? While Aixtron’s revenues aren’t anything to write home about today, there’s some smart money moving into this German semiconductor stock.
However, Aixtron likely won’t start seeing some of this demand and increased revenue until later in 2026 or into 2027—so consider AIXXF stock more of a long-term play than a short-term win.
On the date of publication, Patrick Sanders had a position in: NVDA . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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