Jefferies has upgraded Aixtron to a buy rating with a €27 price target, citing accelerating demand from hyperscalers and optical communications equipment makers. The German semiconductor equipment manufacturer stands to benefit from strengthening optoelectronics revenue through 2026 and 2027 as data center capital expenditure accelerates.

Jefferies analysts note that Coherent and Lumentum, two of Aixtron's largest optoelectronics customers, reported December quarter capital expenditure approximately 35% above expectations. Both companies are front-loading capex in the first half of 2026, with Coherent stating investments will increase sequentially through fiscal year-end and Lumentum showing visibility to additional capacity starting in the second half of 2026. These trends are expected to drive stronger-than-seasonal optoelectronics revenue for Aixtron in 2026 and 2027.

The upgrade also factors in medium-term growth from gallium nitride adoption in AI data centers, particularly as NVIDIA's Kyber rack architecture is expected to launch in late 2027 with 800V high-voltage direct current distribution. With approximately 90% market share in gallium nitride MOCVD tools and healthy utilization rates across the supply chain, Jefferies expects power semiconductor manufacturers to place tool orders in late 2026 or early 2027 to build capacity ahead of demand.