Axcelis Technologies (NASDAQ:ACLS) experienced a sharp decline on Thursday, with shares plummeting 18.4% to close at $145.50. The sell-off erased approximately $1.01 billion in market capitalization, a figure that surpasses the company's trailing 12-month revenue of $845.44 million. The stock's drop was part of a broader downturn in the semiconductor sector, with the Philadelphia semiconductor index falling 6.7% and the Nasdaq Composite declining 1.5%.
Axcelis now projects second-quarter revenue around $205 million and non-GAAP earnings per share near $0.90, according to its latest outlook. The company's market cap settled at $4.47 billion, pricing it at roughly 5.3 times trailing revenue, down from about 6.5 times before the decline. Shares ended the session 16.9% below the opening price and just 2.4% above the day's low.
The broader chip sector also faced headwinds, with the VanEck Semiconductor ETF (NASDAQ:SMH) dropping 4.9%. Major equipment maker Applied Materials (NASDAQ:AMAT) fell 7.82%, while smaller rival ACM Research (NASDAQ:ACMR) declined 17.01%. Analysts noted that the sell-off appeared to be driven by market sentiment rather than company-specific news, as Axcelis's investor relations page showed no new filings since June 17.
Axcelis shares closed below BofA Securities' revised $156 price target, which was raised from $130 on June 23, though the firm maintained an Underperform rating. The company's first-quarter results showed revenue of $199.0 million, up 3.3% year-over-year, but gross margin contracted to 40.5% from 46.1%, operating margin fell to 4.0% from 15.1%, and diluted EPS dropped to $0.30 from $0.88.
CEO Russell Low highlighted strong demand in DRAM and HBM segments but cautioned that 2026 revenue would be "relatively flat" as gains in memory offset softer Power and General Mature business. Interim CFO David Ryzhik noted "firming order trends" and anticipated revenue growth in the second half of the year. The company is also awaiting regulatory approval from China's State Administration for Market Regulation for its merger with Veeco Instruments (NASDAQ:VECO), which shareholders approved in February and is expected to close in the second half of 2026.
U.S. equity markets will be closed on Friday, July 3, 2026, in observance of Independence Day, with the last regular trading session on Thursday.
