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Camtek (CAMT) Secures $20 Million Order From OSAT Provider
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Camtek (CAMT - Free Report) shares have surged 97.2% in the year-to-date period against the Zacks Electronics - Measuring Instruments industry’s decline of 3.8%. This surge in share price shows investors’ confidence in its financials and steady flow of contracts.
Camtek recently received a $20 million order from a tier-1 Outsourced Semiconductor Assembly and Test (OSAT) provider. The OSAT provider will use Camtek’s inspection and metrology tools in Advanced Packaging applications. These products will be delivered by the company in the second half of 2024.
In the past year, CAMT has received several orders for its chiplet modules, high bandwidth memory (HBM) and heterogeneous integration applications. So far this year, the company has received another major order worth $25 million from a tier-1 HBM manufacturer.
Camtek, as a major supplier for inspection and metrology of HBM, is poised to benefit from the growing HBM market. According to a report by Mordor Intelligence the HBM market size is projected to reach $7.95 billion by 2029 from $2.52 billion in 2024, witnessing a CAGR of 25.86%.
Camtek Benefits From Growing HBM Market
HBMs are high in demand because of their application in Data Center Optimization and artificial intelligence (AI). The massive growth in the HBM market has attracted multiple companies like Micron Systems (MU - Free Report) , Cadence Design Systems (CDNS - Free Report) and Intel (INTC - Free Report) , which are serving various aspects of this space.
Micron recently rolled out HBM3E, Intel released Sapphire Rapids HBM under the name Intel Xeon CPU Max Series and Cadence has long been offering its HBM PHY IP. Camtek is also benefiting from the demand for HBMs.
The high demand for high-performance computing drove CAMT’s performance both in 2023 and throughout 2024. Camtek received orders for approximately 300 systems in the second half of 2023 from tier-1 companies that manufacture HBM and chiplet devices for AI applications.
Camtek, on its first-quarter 2024 earnings call, reported that HBM accounted for a single-digit percentage of its revenues in the first half of 2023. However, its contribution increased to approximately 20% of CAMT’s revenues in 2023. In the first quarter of 2024, HBM contributed for 40% of the total revenues.
Conclusion
Camtek is consistently receiving orders for its systems, primarily driven by demand from the HBM category. With a positive outlook for the HBM industry, this steady flow of orders is expected to continue.
The Zacks Consensus Estimate for CAMT’s second-quarter 2024 earnings has been revised upward from 62 cents to 65 cents in the past 60 days. For fiscal 2024, the consensus mark for earnings has been revised upward from $2.52 to $2.61 in the past 60 days.
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Camtek (CAMT) Secures $20 Million Order From OSAT Provider
Camtek (CAMT - Free Report) shares have surged 97.2% in the year-to-date period against the Zacks Electronics - Measuring Instruments industry’s decline of 3.8%. This surge in share price shows investors’ confidence in its financials and steady flow of contracts.
Camtek recently received a $20 million order from a tier-1 Outsourced Semiconductor Assembly and Test (OSAT) provider. The OSAT provider will use Camtek’s inspection and metrology tools in Advanced Packaging applications. These products will be delivered by the company in the second half of 2024.
In the past year, CAMT has received several orders for its chiplet modules, high bandwidth memory (HBM) and heterogeneous integration applications. So far this year, the company has received another major order worth $25 million from a tier-1 HBM manufacturer.
Camtek, as a major supplier for inspection and metrology of HBM, is poised to benefit from the growing HBM market. According to a report by Mordor Intelligence the HBM market size is projected to reach $7.95 billion by 2029 from $2.52 billion in 2024, witnessing a CAGR of 25.86%.
Camtek Benefits From Growing HBM Market
HBMs are high in demand because of their application in Data Center Optimization and artificial intelligence (AI). The massive growth in the HBM market has attracted multiple companies like Micron Systems (MU - Free Report) , Cadence Design Systems (CDNS - Free Report) and Intel (INTC - Free Report) , which are serving various aspects of this space.
Micron recently rolled out HBM3E, Intel released Sapphire Rapids HBM under the name Intel Xeon CPU Max Series and Cadence has long been offering its HBM PHY IP. Camtek is also benefiting from the demand for HBMs.
The high demand for high-performance computing drove CAMT’s performance both in 2023 and throughout 2024. Camtek received orders for approximately 300 systems in the second half of 2023 from tier-1 companies that manufacture HBM and chiplet devices for AI applications.
Camtek, on its first-quarter 2024 earnings call, reported that HBM accounted for a single-digit percentage of its revenues in the first half of 2023. However, its contribution increased to approximately 20% of CAMT’s revenues in 2023. In the first quarter of 2024, HBM contributed for 40% of the total revenues.
Conclusion
Camtek is consistently receiving orders for its systems, primarily driven by demand from the HBM category. With a positive outlook for the HBM industry, this steady flow of orders is expected to continue.
The Zacks Consensus Estimate for CAMT’s second-quarter 2024 earnings has been revised upward from 62 cents to 65 cents in the past 60 days. For fiscal 2024, the consensus mark for earnings has been revised upward from $2.52 to $2.61 in the past 60 days.
Camtek sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.