Amtech's TPS Drives Revenue Growth: Is the Trend Set to Continue?

Amtech Systems, Inc. ASYS is seeing its Thermal Processing Solutions (TPS) segment emerge as the primary driver of revenue growth, supported by accelerating AI infrastructure and advanced-packaging demand. In the third quarter of fiscal 2026, TPS revenues rose 24.9% year over year to $17.7 million, driving a 14.5% increase in consolidated revenue to $22.4 million.

The momentum is increasingly tied to AI. AI-related TPS revenues surged approximately 120% year over year and accounted for more than 40% of TPS revenues, up from roughly 30% a year earlier. Strong demand for advanced-packaging and AI server-board assembly equipment, supported by Amtech's differentiated TrueFlat technology and temperature uniformity, continues to support the segment's growth.

Notably, the growth appears to have further runway. TPS posted a 1.37 book-to-bill ratio, marking its third consecutive quarter above 1, while new TPS orders reached $24.3 million in the third quarter of fiscal 2026. Meanwhile, parts and services contributed about 20% of TPS revenues, benefiting from the expanding installed base.

Looking ahead, Amtech expects fourth-quarter revenues of $22.5-$24.0 million, with continued growth driven by strong AI-related equipment orders. Taken together, strong bookings, rising AI demand, advanced-packaging exposure and growing aftermarket revenue provide a solid foundation for TPS to remain the key driver of ASYS' revenue growth in the long run.

How Competitors Fare Against ASYS

inTest INTT competes with ASYS mainly in semiconductor thermal management and test-related equipment. INTT offers advanced high-powered chillers, induction heating and test solutions for high-power devices, including SiC and GaN, complementing ASYS’ thermal-processing focus for AI and advanced packaging. Thus, INTT competes for thermal-intensive semiconductor applications, while its broader testing portfolio gives it additional exposure to power-device production.

Veeco Instruments VECO represents a more direct competitor to ASYS in semiconductor thermal processing, particularly through laser and nanosecond annealing. VECO also competes across deposition and advanced packaging with ion-beam deposition, wet processing and lithography. This broader process portfolio positions VECO against ASYS for AI-driven semiconductor manufacturing and advanced packaging opportunities, while its thermal technologies target increasingly precise processing requirements.

ASYS’ Share Price Performance, Valuation & Estimates

Amtech shares have gained 16.6% year to date compared with the broader Zacks Computer and Technology sector's 15.7% growth.

ASYS’ YTD Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, ASYS trades at a forward 12-month price-to-earnings ratio of 13.49, lower than the Semiconductor - General industry's average of 21.12. The company carries a Value Score of D.

ASYS’ Valuation

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Amtech's fiscal 2026 and 2027 earnings is currently pegged at 41 cents and $1.25 per share, respectively. Both estimates have moved higher over the past 30 days. The company reported earnings of 5 cents and 41 cents per share, respectively, in the prior year.

Amtech Systems, Inc. Price and Consensus

Amtech Systems, Inc. price-consensus-chart | Amtech Systems, Inc. Quote

Amtech stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research