Chip Equipment for Electric Vehicles Is Hot. Is This Key Small-Cap Stock a Buy?
The electric vehicle (EV) and renewable power markets are expanding rapidly, bucking worries of recession and global economic slowdown. Companies playing an outsize role in these emerging industries have been holding up well.
But then there's Axcelis Technologies (NASDAQ: ACLS), which has been doing more than holding up well. The small semiconductor manufacturing equipment stock is up 200% in the past 12 months, including a more than 100% run since the start of 2023. Thank the EV market for this massive return, and a new type of chip needed to power EVs.
A few months ago, I stuck a hold rating on Axcelis stock, ultimately preferring another name in the chip manufacturing equipment industry. Axcelis has continued its upward push and it's time to reassess.
Source Fool.com
