For Immediate Release
Chicago, IL – August 31, 2026 – Zacks Equity Research shares Advanced Energy Industries AEIS as the Bull of the Day and Fluence Energy, Inc. FLNC as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Broadcom Inc AVGO, Advanced Micro Devices, Inc. AMD and NVIDIA Corporation NVDA.
Here is a synopsis of all five stocks:
Bull of the Day:
Advanced Energy Industries is a leader in precision power conversion, measurement, and control solutions riding two of the strongest spending cycles in tech: AI data centers and advanced semiconductor manufacturing.
AEIS crushed Q2 earnings estimates in early August and provided stellar guidance that sent its FY26 and FY27 EPS estimates soaring as it rides the AI spending boom. Its recent upward earnings revisions earn AEIS a Zacks Rank #1 (Strong Buy) and extend a streak of positive revisions that began at the start of 2026.
The precision power systems company is projected to more than double its adjusted earnings between 2025 and 2027, while expanding its revenue by 70% during that stretch.
Advanced Energy Industries stock has soared ~2,700% in the past 15 years to blow away the Zacks Tech sector's 950%, including a 160% charge in the past 24 months.
Despite this run, AEIS stock is down around 30% from its all-time highs, and its average Zacks price target implies 50% upside.
The picks-and-shovels AI stock is finding its footing at some vital long-term technical support levels. Plus, its downturn, mixed with its earnings growth outlook, has Advanced Energy Industries trading at a 50% discount to its highs at 26.3X forward 12-month earnings.
Buying Advanced Energy Industries stock empowers investors to ride the broader megatrends of AI and advanced chip manufacturing without having to pick the forward-facing winners.
Best Stocks to Buy Now and in September: Top-Ranked AI Stock AEIS
Simply put, Advanced Energy makes the specialized power systems that turn raw electricity into tightly controlled power needed for complex equipment.
Advanced Energy Industries designs and makes precision power conversion, measurement, and control solutions. The firm's various products and solutions serve customers across critical industries such as semiconductor equipment, networking and telecommunications, and, most importantly, AI data centers.
The company is well diversified, with an established track record of growth long before AI. On top of that, it pays a dividend, which is supported by its sturdy balance sheet.
AEIS's largest end-market remains semiconductor manufacturing. Its power systems enable the plasma etching and deposition processes needed to build advanced chips, including the current king of tech, AI GPUs.
Beyond chip building, the critical power conversion company is posting explosive growth in the data center computing segment. AEIS is helping supply the efficient, high-power-density power conversion modules that feed massive AI server racks that power the AI hyperscaler boom across Google, Microsoft, and Amazon.
The picks-and-shovels tech company is benefiting from the ongoing AI capex boom that's heating up regardless of AI bubble worries. AI hyperscalers including Microsoft and beyond are projected to spend ~ $700 billion in AI capex in 2026 and ramp up again next year.
Nvidia confirmed its bullish outlook when it reported its Q2 results last week, sending the AI chip powerhouse higher. Nvidia's strong outlook and report came not too long after it reached a deal with BlackRock, Goldman Sachs, and other Wall Street giants to raise $500 billion to ramp up the AI infrastructure build-out.
Not to be left out, Bank of America followed up on Nvidia's capex news by rolling out a plan to pour $250 billion into AI infrastructure. These spending announcements add to the AI capex boom that's directly benefiting Advanced Energy Industries.
The Pick-and-Shovels AI and Semiconductor Stock's Growth
AEIS expanded its Data Center Computing segment revenue by 107% in 2025, boosting overall revenue by 21% YoY. The company followed that explosive growth up with 62% YoY AI data center unit expansion in the first six months of 2026.
The tech firm topped our Q2 earnings estimates by 25% and provided robust guidance, earning AEIS stock a Zacks Rank #1 (Strong Buy). Its third quarter consensus EPS estimate has jumped 30% since its August 3 release, while its FY26 outlook jumped 22% and its 2027 estimate soared 32%.
Looking ahead, AEIS is projected to grow its adjusted earnings by 75% YoY in 2026 and another 29% next year to soar from $6.41 a share in FY25 to $14.44 a share next year.
Advanced Energy Industries' stellar bottom line growth outlook comes after it grew its GAAP earnings by 169% last year, after a brief setback. AEIS has also beaten our estimates for five years running outside of one miss in early 2024.
AEIS is projected to grow its revenue by 35% in 2026 and another 25% next year to reach $3 billion. This outlook would see it more than double its 2024 total and blow away its previous sales record of $1.85 billion in 2022.
Buy the AI-Boosted Tech Stock for Value, Upside & Breakout Potential
AEIS stock skyrocketed ~2,700% over the past 15 years to more than double the Tech sector's ~950%. This run includes a 160% charge over the last two years that helped it crush Tech's 62%, AI chip giant Nvidia's NVDA 85%, and the rest of the Mag 7 from Microsoft to Meta.
The AI-boosted tech stock's recent surge helped it soar meaningfully above its previous trading range that it was stuck in between early 2021 and the summer of 2025. AEIS shares are still up 30% in 2026, including a ~30% drop from their May peaks.
Advanced Energy Industries average Zacks price target offers 50% upside from its current levels. On top of that, it is finding support at its 50-week moving average and its highs prior to its gap up in February 2026.
On the valuation front, the tech stock's fall, coupled with its earnings growth outlook, has it trading at a 50% discount to its highs at 26.3X forward 12-month earnings.
Bear of the Day:
Fluence Energy, Inc. makes large-scale battery energy storage systems and complementary software.
Even though Fluence is part of a growth-heavy area of the economy that's being fueled by the power-hungry AI data center boom, the stock has dropped roughly 70% since its late 2021 IPO.
Fluence Energy lost money in fiscal 2025, and its earnings outlook tanked again after another disappointing quarterly release on August 5.
Why Investors Might Want to Stay Away from FLNC Stock
Fluence Energy makes large-scale battery energy storage systems and smart software that help store electricity from solar and wind farms.
Giant rechargeable batteries make intermittent energy sources such as solar and wind more practical by smoothing out the ups and downs.
The broader battery energy storage system (BESS) market is booming as it rides converging megatrends across AI, electrification, and overall energy industry growth and evolution.
Yet, Fluence posted a GAAP loss of -$0.42 a share in fiscal 2025 and an adjusted loss of -$0.37 per share. Most recently, FLNC reported an adjusted Q3 FY26 (period ended in June) loss of -$0.24 per share, falling well short of our estimate that called for a -$0.05 per share loss.
The company's downbeat guidance sent its FY26 estimate down to a loss of -$0.52 a share from -$0.18 and cut its FY27 estimate roughly in half (from +$0.21 down to +$0.09). Fluence Energy's downbeat earnings revisions help it land a Zacks Rank #5 (Strong Sell) right now.
Fluence Energy's recent downward earnings trends are part of a longer-term run of negative revisions. This backdrop means investors likely want to stay away from FLNC stock for now, or at least until it proves to Wall Street that it can start making money.
Investors interested in the broader energy storage space might consider looking elsewhere at stocks such as Tesla and others.
Additional content:
Broadcom vs. AMD: Which AI Chip Stock Has the Better Risk-Reward?
Tech behemoths Broadcom Inc and Advanced Micro Devices, Inc. have benefited immensely from strong artificial intelligence (AI)-driven growth, as reflected in their latest quarterly results. However, the two companies differ in their growth prospects, competitive positioning and valuation. So, which stock offers the better risk-reward opportunity for investors?
Reasons to Be Bullish on Broadcom
As per Broadcom's June 3 press release, the company's AI semiconductor business posted exceptional growth. In the fiscal second quarter of 2026, the company's AI semiconductor revenues reached $10.8 billion, up 143% year over year. The momentum is expected to continue into the next quarter. Broadcom projects AI semiconductor revenues of $16 billion in the fiscal third quarter of 2026, representing more than 200% year-over-year growth (read more: Broadcom Q2 Earnings Call Spotlights AI Demand Surge).???
Consolidated revenues for the fiscal third quarter are expected to reach $29.4 billion, up 84% year over year. This follows record consolidated revenues of $22.2 billion in the fiscal second quarter, representing a 48% year-over-year increase.
Broadcom is also maintaining strong profitability while delivering rapid AI-driven revenue growth. In the fiscal second quarter, Broadcom generated $15.2 billion in adjusted EBITDA, which resulted in an adjusted EBITDA margin of 69%. Similarly, the company expects the EBITDA margin to remain around 68% in the fiscal third quarter.
Reasons to Be Bullish on AMD
AMD reported $11.5 billion in revenues in the second quarter of 2026, up 50% year over year and 13% sequentially, citing the company's Aug. 4 press release. Data Center revenues were particularly strong, more than doubling from the prior-year period (read more: Advanced Micro Q2 Earnings: How Key Metrics Compare to Wall Street Estimates).???
Data Center revenues are expected to accelerate in the second half of the year. At the same time, overall revenues are expected to reach $13 billion, plus or minus $300 million, in the third quarter of 2026. From the midpoint, that would result in 41% year-over-year growth and a 13% sequential rise.
Rising demand for AMD's EPYC server processors supported the company's growth outlook. Meanwhile, AMD's Instinct accelerators are witnessing rapid growth, while the Helios platform has entered its initial production ramp. The company is also delivering strong revenue growth along with improving margins. For the fiscal third quarter, AMD expects a healthy non-GAAP gross margin of 56%.
Broadcom or AMD: Which AI Chip Stock Offers Better Risk-Reward?
Strong revenue growth and a healthy adjusted EBITDA margin make a compelling case for further upside in Broadcom's share price. An upbeat revenue outlook suggests that Broadcom is well-positioned to enter a multi-year growth cycle rather than a temporary surge. As demand for Broadcom's custom AI accelerators and AI networking solutions increases, growth should continue.
Similarly, accelerating Data Center growth, strong demand for EPYC processors, and the Instinct accelerators could support continued share-price appreciation for AMD. Expanding margins, along with the initial ramp-up of the Helios platform, could further boost earnings and shareholder returns.
However, Broadcom has more diversified AI exposure through its infrastructure software, custom accelerators and networking. By contrast, AMD continues to face challenges in gaining market share from NVIDIA Corporation in the AI ecosystem.
Additionally, AMD trades at a forward price/earnings ratio of 63.64, significantly higher than Broadcom's 31.66. This elevated multiple indicates that a substantial portion of AMD's expected growth is already reflected in its valuation, leaving it more vulnerable to a downturn if earnings growth fails to meet expectations. In contrast, Broadcom trades at a lower earnings multiple, offering investors a more favorable balance between growth potential and valuation.
Overall, Broadcom offers a better risk-reward profile, supported by a strong growth outlook and lower valuation. In contrast, AMD's higher valuation and competitive challenges make its upside more dependent on strong execution. Both Broadcom and AMD currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here.??????
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Zacks' Research Chief Names "Stock Most Likely to Double"
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