Data Centers & My Portfolio: A Modest Surge

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So, Advanced Energy Industries (AEIS +12.29%). It jumped today. Sixteen percent, give or take. Which, honestly, is more excitement than I’ve felt since they discontinued the apricot yogurt. I’d been tracking it, mostly because a distant cousin – the one who breeds miniature poodles and sends me unsolicited advice on grout – mentioned it at Thanksgiving. “Underrated,” she’d declared, between mouthfuls of cranberry sauce. I usually discount anything she says, but she did once correctly predict a hailstorm. So, I looked. And, well, it seems she was right about this one.

Powering Up, Apparently

They make… things. Precision power equipment. That’s the polite way of saying they keep the lights on, but for really, really important lights. Like, the ones in data centers, and the ones that allow semiconductor factories to, you know, semiconduct. I’m not an engineer. I collect vintage thimbles. But even I understand that if those things go down, everything else kind of wobbles. Apparently, nearly 80% of their income comes from those two sectors. Which feels… concentrated. Like all my eggs in a very high-tech, climate-controlled basket.

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The data center part, predictably, boomed. A 101% increase year over year. It’s all this AI stuff, I gather. Everyone needs more processing power. It reminds me of my nephew’s obsession with video games. He demands faster internet, a better graphics card… it’s never enough. This feels like that, but on a global scale. They only grew 4% quarter over quarter, which feels… modest. But then again, I’m used to the glacial pace of antique appraisals.

The semiconductor side was the surprise. An 8% quarter-over-quarter jump. Apparently, things are improving. Which is good. My initial assessment was that this stock was a bit… niche. But then again, so is my thimble collection. And it’s brought me a certain amount of quiet satisfaction, and a surprisingly robust resale value.

The CEO, Steve Kelley, sounded… optimistic. Which is refreshing. Most CEOs sound like they’re perpetually bracing for the apocalypse. He said their data center wins are “going into volume production.” Which sounds… technical. And vaguely threatening. He also mentioned 800V HDC data centers. I’m not entirely sure what that means, but it sounds expensive. And probably requires a lot of electricity. He’s predicting over 30% revenue growth in 2026. Which, if true, would be nice. I could finally afford that miniature porcelain dachshund I’ve been eyeing.

Semiconductors & Second-Half Increases

He didn’t offer any specific guidance for semiconductor growth, but he said momentum carried over from the fourth quarter. And that customers are expecting “further increases” in the second half. Which sounds… vague. But I’ve learned to appreciate ambiguity. It leaves room for hope. And a healthy dose of skepticism.

They have almost 18% operating margins, and they’ve moved production out of China. That’s… responsible. Or at least, it sounds responsible. It’s a relief to see a company that isn’t entirely reliant on precarious global supply chains. And with all this talk of data centers and semiconductors, it seems like a relatively safe bet. An “under-the-radar” stock, as they say. Which is perfect. I prefer my investments to be quiet and unassuming. Like a well-polished thimble.

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2026-02-11 22:12