Aixtron Stock: Shares Plunge After Disappointing Outlook

Aixtron shares plummeted over 11% to €12.82 on Thursday following the chipmaker's annual results and 2025 forecast, which significantly disappointed investors. The company projects revenue to decline to between €530-600 million this year, down from €633 million in 2024, with operating margins expected to range between 18-22%. Adding to investor concerns, Aixtron announced a substantial dividend cut from €0.40 to just €0.15 per share. The financial results showed a 27% drop in net profit to €106 million, while operating margin decreased from 25% to 21%. The weak performance stems primarily from declining demand in electric mobility and various industrial markets, as customers remain hesitant about major investments, particularly affecting silicon carbide (SiC) chips used in EV fast-charging technology.

Cost-Cutting Measures Amid Long-Term Optimism

In response to these challenges, Aixtron has initiated a voluntary staff reduction program expected to yield annual cost savings in the mid-single-digit millions. Despite current difficulties, the company maintains optimism about medium-term growth prospects, continuing investments in future technologies through a new innovation center to strengthen research and development activities. For 2025, management is focusing on improving profitability and rebuilding cash reserves. Market analysts still view the company's growth drivers as fundamentally intact, anticipating a recovery in SiC-related demand as electric vehicle platforms gain wider adoption, while also expecting significant contributions from the rapidly expanding gallium nitride (GaN) chip equipment business.