Aixtron Pivots to Data Center Lasers Amid Electric Vehicle Slowdown

Aixtron shifts focus to lasers for AI infrastructure to offset weak electric mobility demand. Stock surges 41% monthly, with 2027 recovery eyed for core SiC business.

Equipment manufacturer Aixtron is executing a strategic pivot, placing increased emphasis on specialized lasers for artificial intelligence data centers. This shift aims to counterbalance the persistent downturn in its electric mobility business. The timing of this move is crucial, as the current fiscal year demands considerable operational patience from the company.

Strategic Shift Gains Traction

The company’s shares have been performing strongly, largely ignoring near-term operational headwinds. With a substantial gain of over 41% on a monthly basis, the stock climbed to €32.60 by Friday's close, trading just shy of its 52-week high. This recent ascent into the STOXX Europe 600 index is expected to bring additional institutional investor attention.

The momentum follows weekend announcements detailing new collaboration projects. These partnerships underscore a clear strategic refocus towards optical data transmission technology. Aixtron is positioning itself as an essential equipment supplier for producing the lasers that enable massive data transfer within modern AI infrastructure. Management also anticipates potential tailwinds from possible state subsidies for building sovereign European AI capabilities.

A Transitional Year with a Future Catalyst

The dampened demand from the automotive sector is leaving a clear mark on the company's outlook. For 2026, Aixtron anticipates a decline in revenue to approximately €520 million, down from nearly €557 million booked the previous year. Profitability is also under pressure from overcapacity in the silicon carbide (SiC) market, reflected in an expected EBIT margin range of 16% to 19%.

Currently, the laser technology segment serves as a key stabilizer. It is offsetting the noticeably weakening demand for silicon carbide (SiC) systems used in electric vehicles. The company's foundation is further supported by its robust free cash flow, which recently stood at €182 million, and its flourishing laser business.

The market appears to be looking beyond this transitional phase, already pricing in a recovery anticipated for 2027. Industry analysts project that the broad adoption of 800-volt battery systems in the auto sector will trigger a new investment cycle for highly efficient SiC components. Until that recovery takes hold, Aixtron's strategic reorientation towards data center lasers provides a critical bridge.