If You Like Micron Technology, You Might Love This Other Super Semiconductor Stock

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Micron Technology (MU +15.88%) supplies some of the world’s best high-bandwidth memory (HBM) for data centers, which is critically important for processing artificial intelligence (AI) workloads. Demand for this hardware far exceeds supply, which is why Micron stock has exploded higher by 700% over the past year.

But another company is also benefiting from the blistering demand for memory. Axcelis Technologies (ACLS +2.41%) sells ion implantation machines, which play an essential role in the manufacturing of memory chips and other semiconductor hardware. As companies such as Micron race to expand their production capacity, they will have to buy more of this equipment.

Axcelis stock is sitting on a 12-month gain of 170%. But is there more upside ahead?

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The memory opportunity could transform Axcelis’ business

Axcelis has three primary business units which account for 90% of its revenue:

Power: Axcelis sells ion implantation machines for power semiconductors, which control the flow of electricity between chips and other devices. The company specializes in complex chemistries, including silicon carbide which is popular in the electric vehicle industry because it facilitates rapid battery charging.
General Mature: This segment includes ion implantation equipment for mature-node chips, which are the basic processors that power everyday electronics including Wi-Fi modems, vehicle infotainment systems, and camera sensors.
Memory: This is where Axcelis accounts for sales of ion implantation machines to manufacturers of memory chips, whether they are making HBM for data centers or direct random-access memory for computers and smartphones.

Ion implantation is a highly complex but crucial process that occurs in the very early stages of semiconductor production. Chips start out as basic sheets of silicon crystal, so to turn this raw material into functioning memory cells, ion implantation machines have to fire tiny charged atoms into the wafer…

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