Aixtron Faces Slowed Growth – Unexpected Profit Declines

The German semiconductor systems manufacturer Aixtron experienced an unexpectedly sharp decline in operating profit in the third quarter. This was due to lower gross margins in a challenging market environment. Aixtron's EBIT fell by 17 percent year-on-year to 37.5 million euros, falling short of analysts' forecasts, who had expected an average of 40.6 million euros. Quarterly revenue also missed expectations, dropping 5 percent to 156.3 million euros, compared to analysts' projections of 162.5 million euros. Pressure on chip stocks increased after the U.S. government tightened export restrictions on chip equipment to China. These uncertainties, coupled with the uncertainty surrounding the U.S. presidential elections, are causing investors to act cautiously. Weak demand for automotive, PC, and memory chips could only be partially offset by increased demand for AI chips. Despite these challenges, Aixtron remains cautious regarding revenue in 2025. The company anticipates revenues at the level of the 2024 fiscal year or slightly below. However, the forecast for the full year 2024 has been confirmed, with expected revenues between 620 million and 660 million euros.