Advanced Energy Industries Talks Data Center Surge, 40% Margin Goal, and Thailand Capacity Plans

Executives discuss shifting end-market dynamics, margin drivers, capacity plans, and product roadmaps.

Published on Mar. 6, 2026

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Executives from Advanced Energy Industries (NASDAQ:AEIS) discussed the company's shifting end-market dynamics, margin drivers, capacity plans, and product roadmaps during a discussion hosted by Morgan Stanley. Key topics included the semiconductor and data center segments, margin improvement, and plans for a new manufacturing facility in Thailand.

Why it matters

As a global technology company specializing in precision power conversion solutions, Advanced Energy's performance and strategic decisions have implications for the semiconductor, data center, and industrial equipment industries. The company's commentary on market trends, margin goals, and capacity expansion provide insights into the broader dynamics shaping these sectors.

The details

Executives highlighted strong momentum in the semiconductor segment, with the company expecting continued growth this year and into 2027. In data centers, Advanced Energy reported over 100% growth last year and is focused on expanding its presence with 'second wave' customers. The company is also working to improve margins, with a goal of reaching nearly 40% gross margins by the end of 2025. To support future growth, Advanced Energy is investing in capacity expansion, including a new facility in Thailand that could come online in early 2027 to serve data center and semiconductor customers.

  • Advanced Energy reported results on February 10, 2026.
  • The company expects higher capital spending for the next 4-6 quarters, with moderation afterward.
  • The Thailand facility buildout is essentially finished, and the company says it could be ready for manufacturing in about 6 months after a 'go' signal.
  • Advanced Energy expects the Thailand facility to open 'likely' in early 2027, though the timing could shift.
  • The company believes it is on track to add $40 million of incremental revenue from its 'System Power' offerings by 2030.

The players

Advanced Energy Industries

A global technology company specializing in precision power conversion, measurement, and control solutions. The company designs and manufactures a broad portfolio of products used in semiconductor fabrication, flat panel display manufacturing, industrial coating, data storage, telecommunications, and medical device production.

Paul Oldham

Executive Vice President and Chief Financial Officer of Advanced Energy Industries.

Edwin Mok

Senior Vice President of Strategic Marketing and Investor Relations at Advanced Energy Industries.

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