Veeco Instruments Inc. develops, manufactures, sells, and supports semiconductor and thin film process equipment used primarily to make electronic devices. Its systems include laser annealing, ion beam deposition and etch, metal organic chemical vapor deposition, single wafer wet processing and surface preparation, molecular beam epitaxy, advanced packaging lithography, and atomic layer deposition. These tools are used in producing logic, dynamic random-access memory, photonics devices, power electronics, radio frequency filters and amplifiers, magnetic heads for hard disk drives, and other semiconductor devices. The company sells to integrated device manufacturers and foundries, outsourced semiconductor assembly and test companies, hard disk drive and photonics manufacturers, and research centers and universities. Founded in 1945, Veeco Instruments Inc. is headquartered in Plainview, New York.
Axcelis to Build $35 Million Ion Implantation Factory in Korea
Axcelis Technologies announced a $35 million investment in a new ion implantation equipment factory in Pyeongtaek, Gyeonggi Province, Korea, with a groundbreaking planned for October 20 and output not scheduled until the back half of 2028. The roughly 200,000-square-foot site will include warehousing, a training center, and two grades of cleanrooms, and CEO Russell Low framed it as an extension of Axcelis' existing Korean presence meant to serve rising global semiconductor demand; Executive Vice President Robert Mahoney took part in an investment declaration ceremony in Washington, D.C., alongside Korean trade officials. The move follows the company's August 6, 2026 second-quarter report, in which revenue rose from a year earlier and beat its own forecasts on stronger system shipments and aftermarket business, with Axcelis guiding to roughly $230 million in third-quarter sales and expecting revenue growth in 2026 that carries into 2027. Even so, GAAP earnings per share fell to $0.75 from $0.98 a year earlier and gross margin slid to 42.4% from 44.9%. Axcelis also has a pending merger with Veeco still awaiting remaining conditions, targets a close in the second half of 2026, and is operating with an interim CFO, while 33 hedge funds held the stock in the most recent quarter, up from 25, and short interest stands at 6.70% of the float.
Axcelis Eyes Mid-Single-Digit 2026 Revenue Growth as Veeco Merger Awaits China Approval
Axcelis Technologies is pointing to renewed growth as memory, power and aftermarket demand improve, with management expecting full-year 2026 revenues to grow at a mid-single-digit rate and further growth in 2027. The Zacks Consensus Estimate calls for 2027 revenues of $981 million and earnings of $5.29 per share, versus $884 million and $4.12 expected for 2026. Customer Solutions & Innovation revenues increased 35.1% year over year to $82.8 million in the second quarter of 2026, up 14% sequentially from $72.6 million. Second-quarter non-GAAP gross margin was 42.7%, down from 45.2% a year earlier, and non-GAAP operating margin fell to 14.7% from 17.7%, even as revenues rose 10.6% year over year. Axcelis trades at 21.2X forward 12-month earnings, above the Zacks industry multiple of 20.0X and its five-year median of 18.6X, and its pending all-stock combination with Veeco Instruments still depends on regulatory approval from China's State Administration for Market Regulation after shareholders approved the related share issuance in February 2026.
Semiconductors › Deposition, Etch & Process Tools ▲Demand
ACLS · Capital · Negative Second-quarter non-GAAP gross margin fell to 42.7% from 45.2% and operating margin dropped to 14.7% from 17.7%.
ACLS · Demand · Positive Axcelis expects mid-single-digit 2026 revenue growth on improving memory, power and aftermarket demand, with Customer Solutions & Innovation revenue up 35.1% YoY.
VECO · Regulation · Neutral Veeco's pending all-stock merger with Axcelis still awaits regulatory approval from China's State Administration for Market Regulation.
Axcelis Q2 revenue beats forecast, raises full-year outlook
Axcelis Technologies reported second-quarter revenue of $215.2 million and non-GAAP diluted earnings per share of $1.06, both above company forecasts, and raised its full-year 2026 revenue growth outlook to approximately mid-single digits from a prior expectation of flat performance. Systems revenue was $132 million, supported by recovery in power markets and general mature node activity, while CS&I revenue grew sequentially to $83 million on higher customer utilization. Bookings were $131 million with a book-to-bill ratio of approximately 1x over the past three quarters, and backlog stood at $452 million. The company guided third-quarter revenue of approximately $230 million and non-GAAP diluted EPS of $1.11, and expects the pending merger with Veeco Instruments to close in the second half of 2026.
Veeco lifts 2026 revenue outlook to $780M-$810M, plans to double advanced packaging and silicon photonics capacity in 2027
Veeco Instruments updated its full-year 2026 revenue guidance to a range of $780 million to $810 million and announced plans to more than double its capacity in advanced packaging and silicon photonics during 2027. CEO William Miller said the company sees an important inflection point driven by AI investments, with order momentum accelerating across all major end markets, including $200 million in advanced packaging orders for wet processing and lithography systems that strengthen visibility into 2027. CFO John Kiernan reported second-quarter revenue of $193 million and non-GAAP diluted earnings per share of $0.33, with semiconductor revenue reaching $131 million, an increase of 20% from the prior quarter. The company expects the capacity expansion to pressure near-term profitability, with approximately $10 million in incremental operating expenses and a roughly 75-basis-point impact on full-year gross margin. Veeco also provided third-quarter revenue guidance of $200 million to $220 million and non-GAAP diluted EPS of $0.35 to $0.49, while noting that the pending merger with Axcelis has secured all regulatory clearances except for China antitrust approval and remains on track to close in the second half of 2026.
Global Chemical Vapor Deposition Market Projected to Reach $69.19 Billion by 2030
The global chemical vapor deposition market is projected to grow from $42.33 billion in 2025 to $69.19 billion by 2030, at a compound annual growth rate of 10.2%. The market is expected to reach $46.93 billion in 2026, driven by semiconductor manufacturing expansion, increased thin-film coating usage, and rising solar energy investments. Key trends include growing adoption of plasma-enhanced CVD systems and atomic layer deposition techniques, with Asia-Pacific leading the market and North America poised as the fastest-growing region. Major players such as CVD Equipment Corporation, Tokyo Electron Limited, and Veeco Instruments are advancing the market through innovations like Kyocera's new CVD coating materials and strategic acquisitions including Veeco's purchase of Epiluvac AB for $30 million.
Five Small and Mid-Cap AI Stocks Surge Over 100% in First Half of 2026
Small and mid-cap AI stocks have significantly outperformed large caps in the first half of 2026, with the Russell 2000 and S&P 600 up 20% and 21% respectively, compared to an 8.5% gain for the S&P 500. Five stocks that have more than doubled this year and hold favorable Zacks Ranks are Bandwidth, Arteris, Penguin Solutions, A10 Networks, and Veeco Instruments. Bandwidth, a Zacks Rank #1, operates a conversational AI platform and expects 18.3% revenue growth this year. Arteris, a Zacks Rank #2, provides system IP for AI and automotive chips and projects 34.4% revenue growth. Penguin Solutions, also a Zacks Rank #1, offers AI infrastructure solutions and anticipates 25% revenue growth next year. A10 Networks, a Zacks Rank #2, delivers application networking for AI data centers and expects 11.9% revenue growth. Veeco Instruments, a Zacks Rank #1, makes thin film process equipment for AI hardware and forecasts 20.2% revenue growth.
Axcelis Stock Doubles This Year on AI Memory Demand and Veeco Merger
Axcelis Technologies' stock price has more than doubled year to date, driven by its role in ion-implantation equipment for AI chip fabrication. The company reported only 3% year-over-year revenue growth in Q1, but that was due to declining sales in Power and General Mature markets, while memory demand fueled strong sequential growth in its customer support and innovation segment. The upcoming merger with Veeco Instruments, whose stock has also more than doubled this year, is expected to close in the second half and could expand market share through complementary AI infrastructure equipment like laser annealing. With the memory industry remaining hot, as evidenced by Micron Technology's recent earnings, investors are anticipating that memory will become a larger share of Axcelis' revenue, potentially driving growth in 2027.
Zacks names Kulicke and Soffa, Ultra Clean, Veeco as top electronics manufacturing stocks
Zacks Equity Research highlights Kulicke and Soffa Industries, Ultra Clean Holdings, and Veeco Instruments as top picks in the electronics manufacturing machinery industry, driven by massive AI infrastructure investment. The industry has surged 233.1% over the past year, far outpacing the S&P 500's 23.4% return, and its earnings estimates for 2026 have risen 48% since January 31, 2026. Kulicke and Soffa expects thermo-compression bonding revenues to exceed $100 million in fiscal 2026 and is expanding capacity to support approximately $400 million in advanced solutions revenue. Ultra Clean believes the semiconductor industry is in the early stages of a multiyear AI-driven expansion, with its manufacturing network supporting roughly $3 billion in annual revenues and scalable to about $4 billion. Veeco secured more than $250 million in orders for systems supporting indium phosphide laser manufacturing for AI data centers, with deliveries beginning in 2026 and accelerating in 2027.
Artificial Intelligence › AI Compute & Accelerator Silicon ▲Demand
Artificial Intelligence › AI Power & Cooling ▲Demand
KLIC · Demand · Positive Expects thermo-compression bonding revenues to exceed $100M in fiscal 2026 and expanding capacity for ~$400M advanced solutions revenue, driven by AI infrastructure investment.
UCTT · Demand · Positive Believes semiconductor industry is in early stages of multiyear AI-driven expansion, with manufacturing network supporting ~$3B annual revenues scalable to ~$4B.
VECO · Demand · Positive Secured over $250M in orders for systems supporting indium phosphide laser manufacturing for AI data centers, with deliveries starting in 2026 and accelerating in 2027.
Veeco Director Gordon Hunter Sold 17,714 Shares for $1.09 Million
Veeco Instruments director Gordon Hunter sold 17,714 shares of common stock on May 26, 2026, in a transaction valued at $1.09 million. The sale, disclosed in an SEC Form 4 filing, reduced Hunter's direct holdings to 34,962 shares, representing approximately 0.06% of shares outstanding. This marks his second direct open-market sale in the past month, with the two most recent sales totaling 47,246 shares, consistent with his typical trade size. The transaction involved only directly-held common stock, with no options or indirect ownership reported. Veeco, a semiconductor and thin film process equipment manufacturer with a market capitalization of $4.4 billion, saw its stock price reach a multi-year high of $86.63 on June 15, following a 198.50% one-year price change.
VECO · Capital · Neutral Director sold shares, but no stated reason; stock near high, insider sale may signal personal diversification, not company outlook.
Veeco Instruments Director Richard Damore Sells 43,701 Shares for $2.7 Million
Veeco Instruments Director Richard A. Damore sold 43,701 shares of the semiconductor process equipment supplier for approximately $2.7 million, according to an SEC filing. The sale reduced his direct common stock position by 27.96%, leaving him with 112,594 shares valued at about $6.7 million based on the May 14, 2026 closing price of $59.51. The transaction occurred amid a 178.6% one-year surge in Veeco's stock price, which had reached its highest level in decades, and marks Damore's only open-market disposition in the last two years. Veeco Instruments, with a market capitalization of $3.60 billion, reported trailing-twelve-month revenue of $655.34 million and net income of $23.12 million.
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