Veeco Secures Order for Propel®300 MOCVD System from Prominent GaN-on-Si Power Semiconductor Manufacturer
Written by Emily J. Thompson, Senior Investment Analyst
Source: Newsfilter
Updated: Nov 05 20250mins
Veeco's New Order: Veeco Instruments Inc. has received an order for its Propel®300 system from a major power semiconductor manufacturer for gallium nitride (GaN) epitaxy on 300mm silicon wafers, reinforcing its leadership in 300mm MOCVD technology.
Significance of GaN Technology: The transition to 300mm wafers allows for 2.3 times more chips per wafer, which is crucial for reducing device costs and enhancing the adoption of GaN technology in various applications, including automotive and data centers.
Market Growth Projection: The GaN device market is projected to grow at a 35% CAGR, increasing from $555 million in 2025 to $2.5 billion by 2030, driven by rising power consumption demands in AI workloads.
Propel®300 Features: The Propel®300 system boasts advanced MOCVD TurboDisc technology, offering high productivity, low defectivity, and cost efficiency, along with automated wafer handling and ease of use, contributing to its low cost of ownership.
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Analyst Views on VECO
Wall Street analysts forecast VECO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VECO is 32.75 USD with a low forecast of 30.00 USD and a high forecast of 36.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
2 Buy
3 Hold
0 Sell
Moderate Buy
Current: 29.180
Low
30.00
Averages
32.75
High
36.00
Current: 29.180
Low
30.00
Averages
32.75
High
36.00
Citi
Buy
upgrade
$29 -> $36
2025-11-12
Reason
Citi
Price Target
$29 -> $36
2025-11-12
upgrade
Buy
Reason
Citi raised the firm's price target on Veeco to $36 from $29 and keeps a Buy rating on the shares. The firm upped wafer fab equipment estimates to reflect rising artificial intelligence investments. Citi remains constructive on the sector.
Barclays
Tom O'Malley
Equal Weight
downgrade
$22 -> $21
2025-05-08
Reason
Barclays
Tom O'Malley
Price Target
$22 -> $21
2025-05-08
downgrade
Equal Weight
Reason
Barclays analyst Tom O'Malley lowered the firm's price target on Veeco to $21 from $22 and keeps an Equal Weight rating on the shares following the earnings report. The firm notes that $35M of China revenue is coming out of the model this year as customers choose to wait until tariffs are resolved.
Goldman Sachs
Neutral
downgrade
$27 -> $20
2025-05-08
Reason
Goldman Sachs
Price Target
$27 -> $20
2025-05-08
downgrade
Neutral
Reason
Goldman Sachs lowered the firm's price target on Veeco to $20 from $27 and keeps a Neutral rating on the shares after its Q1 results and below consensus guidance. The outlook was a bit weaker than expected as tariff impacts are causing delays to Chinese shipments and creating uncertainty, the analyst tells investors in a research note. Despite the uncertainty in the environment, Veeco continues to see traction growing in the semiconductor segment, highlighting additional eval systems to be shipped this year, the firm added.
Barclays
Tom O'Malley
Hold
Maintains
$25 → $22
2025-04-22
Reason
Barclays
Tom O'Malley
Price Target
$25 → $22
2025-04-22
Maintains
Hold
Reason
See All Ratings
About VECO
Veeco Instruments Inc. is a manufacturer of semiconductor process equipment. The Company's laser annealing, ion beam, chemical vapor deposition (CVD), metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography technologies are used in the fabrication and packaging of advanced semiconductor devices. Such devices include advanced node application processors for artificial intelligence (AI) chips, high-performance computing, mobile devices, high-speed data communications, and radio frequency (RF) filters and power amplifiers for fifth generation (5G) networks and mobile electronics, photonics devices for 3D sensing, advanced displays, and thin film magnetic heads for hard disk drives in data storage. The Company has comprehensive sales and service operations across the Asia-Pacific, Europe, and North America regions. Its products are purchased by customers in four end-markets: semiconductor, compound semiconductor, data storage, and scientific & other.
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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