Semiconductor Company Axcelis Technologies Charges Past Earnings Expectations

Axcelis Technologies (NASDAQ: ACLS) just reported impressive Q2 earnings with net income up 134% and gross profit up 55% year over year. A maker of equipment used in the fabrication of microchips, Axcelis serves as a unique ancillary provider to the semiconductor industry. As long as chip demand remains high, and consumer electronics aren't impacted by a trade war, Axcelis could be a solid investment for the remainder of 2022 and beyond.

Axcelis Technologies designs, manufactures, and services proprietary equipment used to make semiconductor chips for industries ranging from kitchen appliances to cars. The Massachusetts-based company assists chipmakers with their fabrication processes -- aspects such as contamination control, temperature control, and defect reduction.

The EV market has contributed significantly to Axcelis' success thus far. As CEO Mary Puma describes it, the "electrification of the automotive industry" has driven significant growth for the business, as EV cars require many more microchips than fossil-fuel-powered vehicles do. For example, while a gas-powered Ford Focus has about 300 chips, the electric Ford Mustang Mach-e contains nearly 3,000.

Source Fool.com