Advanced Energy designs and manufactures precision power conversion products — devices that convert raw electrical power into highly controlled outputs for demanding industrial and technology applications. The company's two core product lines are plasma power products used in semiconductor fabrication equipment, and high-efficiency rack power supplies for AI data centers. Advanced Energy sells primarily to OEMs that build semiconductor fab equipment or data center servers, as well as directly to hyperscale cloud providers designing custom server racks. Smaller industrial and medical customers are served through distributors. Advanced Energy operates as a single segment but reports across four end markets: semiconductor equipment (~47% of FY25 revenue), data center computing (~33%), industrial and medical (~18%), and telecom and networking (~4%). The business model centers on winning design-in positions with OEMs — once designed into a customer's platform, Advanced Energy typically holds a sole-source or limited-source position for that platform's life, creating durable, recurring revenue. Revenue growth is driven by technology cycles: each new semiconductor process node requires more plasma power steps, and each successive GPU generation consumes more power, both expanding Advanced Energy's content per unit. The company is executing a multi-year factory consolidation — shifting production to facilities in the Philippines, Malaysia, Mexico, and a new flagship factory in Thailand — to structurally reduce costs and push gross margins above 40%. Growth strategy focuses on semiconductor share gains with new Everest, EVOS, and NavX platforms targeting sub-2nm nodes, continued expansion in AI data center power, and acquisitions in the fragmented industrial and medical market.