Portfolio Update - New Position
Entering the Semiconductor World with an Ion Implantation Equipment Producer
Axcelis (ACLS) is a leading manufacturer of ion implantation equipment, a critical process for creating cutting-edge chips that meet the performance, efficiency, and miniaturization demands of modern technology. Operating in an oligopolistic market, ACLS stands to benefit from the expanding total addressable market (TAM). Growth in areas like 5G, electric vehicles (EVs), AI, and high-performance computing (HPC) is driving the demand for advanced chips, and consequently, ion implanters. However, the cyclical nature of the industry makes predicting its ups and downs challenging. Given the current stock price, I’m starting with a small position with today’s close price. With the current price levels, it will have around 1.8% in the portfolio, I will share the portfolio distribution after the market closes.
As I dive deeper into the semiconductor industry, I find it fascinating how complex the process is, involving numerous companies that produce highly specialized equipment. One of the aspects I love about investing is the opportunity to research and learn about different technologies.
The semiconductor business feels like modern alchemy—transforming sand into chips that can cost more than gold by weight. The wafer used in chip production undergoes over 1,000 processes, taking more than three months to complete.
If you're new to the topic, these two YouTube videos are great starting points to learn about the semiconductor world:
What do you think about the semiconductor ecosystem and the Axcelis?
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The opinions expressed by the author, Moat Mind, are for informational and educational purposes only and should not be interpreted as financial or investment advice. The content presented does not constitute an investment recommendation and should not be relied upon to make investment decisions. The author is not acting in an investment adviser capacity and is not providing personalized financial advice. This content does not represent a comprehensive analysis of any company or security, and it is not a substitute for independent financial research. Investors should perform their own due diligence, which includes a thorough review of SEC filings and consultation with a qualified financial professional before making any investment decisions.The information presented is based on sources believed to be reliable but has not been independently verified. Therefore, the author does not guarantee its accuracy, completeness, or suitability for any specific purpose. Any views or opinions expressed are as of the date of publication and are subject to change without notice.
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