Aixtron, a European semiconductor stock, is gaining attention despite being under the radar. The company, based in Germany, produces equipment for a variety of applications. While its stock has risen 33% in the last month, its year-to-date performance is lagging behind the PHLX Semiconductor Sector Index.

Aixtron recently reported a decline in revenue and profits for the third quarter. Despite this, the company was able to improve its cash position significantly. Its Optoelectronics segment is experiencing growth due to the global expansion of AI data centers.

Analysts have upgraded Aixtron’s rating and price target, citing potential growth in its gallium nitride business. Hedge fund Kerrisdale Capital has also disclosed a long position in Aixtron, projecting significant upside potential. While short-term revenue growth may be slow, smart money is flowing into this semiconductor stock.

Investors should view Aixtron as a long-term play, as increased demand and revenue growth may not materialize until 2026 or 2027. Despite current revenue challenges, the stock has attracted attention from analysts and investors alike, signaling potential for future growth.

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