[Click e-Stock] "Novanta, Key Beneficiary of AI Data Centers in the US... Structural Growth Accelerates"

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It has been analyzed that Novanta, a company listed on the NASDAQ in the United States, is entering a full-fledged phase of profit improvement due to the effects of economies of scale driven by expanding AI (artificial intelligence) demand.

According to Hana Securities on May 14, researcher Kang Jae-gu stated, “We maintain a positive outlook on Novanta, a key beneficiary of physical AI,” adding, “Not only did the company achieve strong results despite a challenging external environment, but leading indicators such as booking performance are also very positive.” The target price is set at $157 (approximately 230,000 won) based on the market consensus.

In the first quarter of fiscal year 2026, Novanta recorded revenue of $260 million and operating profit of $43.16 million, surpassing market expectations. In particular, the share of sales from data center-related products for AI expanded to around 15% of total revenue, and related sales increased by 20% year-on-year.

Researcher Kang noted, “The market likely recognizes Novanta as a direct beneficiary of investments in AI data centers,” and added, “This quarter’s results are attractive because revenue from AI data center businesses—including DUV (deep ultraviolet) and EUV (extreme ultraviolet) lithography, probe card manufacturing, and GPU (graphics processing unit) drilling—became more concrete.” He further forecast, “As the domain of physical AI continues to expand, demand for Novanta’s products will also grow further.”

Balanced growth was also observed across each business division. The Automation & Emerging Technologies (AET) division posted revenue of $130 million, reflecting the benefits of investments in semiconductors and AI infrastructure. The Medical Solutions (MS) division also delivered strong performance in the advanced surgery segment, generating revenue of $130 million, a 14.8% increase year-on-year.

The outlook for the future remains positive. Novanta has suggested second-quarter revenue guidance of $260 million, signaling growth that exceeds market expectations. Researcher Kang added, “Novanta is being recognized for its technological capabilities within the AI robotics ecosystem, including being selected as a partner of NVIDIA. This structural growth trend is expected to drive a long-term increase in corporate value.”

This content was produced with the assistance of AI translation services.