Camtek Targets $1.2B Revenue as AI Packaging Demand Accelerates

Key Points

• Camtek raised its long-term growth ambitions, targeting more than $800 million in revenue in 2027 and potentially $1.2 billion within about three years, compared with roughly $600 million expected in 2026. Management attributed the outlook to strong AI-driven demand for advanced semiconductor packaging equipment.
• More than 80% of Camtek’s $800 million-plus orders received since the start of the year are tied to advanced packaging. Key growth areas include high-bandwidth memory, 2.5D/3D integration, hybrid bonding, edge AI and silicon photonics.
• At the $1.2 billion revenue level, Camtek expects operating margins of 34%–36%, supported by greater sales of Hawk and Eagle Gen5 systems, software and services. The company also plans AI-based software offerings in 2027 and is evaluating acquisitions, backed by more than $800 million in cash and equivalents.

Camtek NASDAQ: CAMT outlined a higher long-term revenue target at its investor and analyst breakfast held alongside SEMICON West, citing demand for advanced semiconductor packaging equipment tied to artificial intelligence applications.

Chief Executive Officer Rafi Amit said the company expects third-quarter revenue of $160 million to $161 million and forecast fourth-quarter revenue of $180 million. Camtek also provided an outlook for revenue of more than $800 million in 2027, supported by what management described as unusually strong customer visibility.

“The exceptional demand for computing power driven by AI applications is creating a level of demand for our equipment unlike anything we have experienced before,” Amit said. He said the visibility has enabled Camtek to discuss expectations roughly a year ahead, something the company had not previously been positioned to do.

Long-Term Revenue and Margin Targets

Camtek said it sees the potential to reach $1.2 billion in annual revenue within about three years, compared with approximately $600 million expected for 2026. The target implies a compound annual growth rate above 26% and is based substantially on organic growth, without including contributions from significant acquisitions.

Chief Financial Officer Moshe Eisenberg said the company’s 2026 revenue is expected to total about $595 million, based on the third-quarter preannouncement and fourth-quarter outlook. The company’s 2027 outlook of more than $800 million would represent approximately 35% growth, he said.

Camtek expects its operating margin to rise to 34% to 36% at the $1.2 billion revenue level, compared with a 30% operating margin in 2025. The company said the projected expansion would be driven by a richer mix of Hawk and Eagle Gen5 systems, software and service revenue, and operating leverage, partly offset by higher research and development investment.

• Target gross margin at $1.2 billion of revenue: 55% to 56%.
• Target operating margin at $1.2 billion of revenue: 34% to 36%.
• Expected software and service revenue mix: 12%, up from 6% currently.

Eisenberg said Camtek had received more than $800 million in orders since the beginning of the year, including more than $200 million added since its prior update. About 80% of those orders came from advanced packaging applications, while slightly more than half came from outsourced semiconductor assembly and test, or OSAT, customers.

Advanced Packaging Growth Drivers

Management identified high-bandwidth memory, 2.5D and 3D integration, hybrid bonding, edge AI and silicon photonics as major drivers for advanced packaging inspection and metrology demand. Director of Marketing Eyal Segev said high-end advanced packaging represents roughly 60% to 70% of Camtek’s business.

Segev said the growing complexity of packaging technologies is increasing the number of inspection and metrology process steps required by customers. He cited higher-density fan-out packaging, tighter wafer and die warp specifications, hybrid-bonding defect detection and smaller micro-bump dimensions as examples of developments requiring additional tools or new capabilities.

Camtek plans to release its 10th-generation bump-height metrology sensor next year, aimed at measuring bumps significantly smaller than 5 micrometers. The company said its current systems can detect defects down to 150 nanometers and that it is developing technologies for sensitivity below that threshold, including capabilities for hybrid-bonding void detection.

President and Chief Operating Officer Ramy Langer said Camtek’s addressable market, or SAM, could expand from about $2.2 billion currently to roughly $6 billion by 2030. The company expects advanced packaging inspection to remain its largest market while it expands in metrology, specialty wafer fabrication and photonics.

Software, Photonics and Capacity Plans

Camtek said it expects software and service to become a more significant growth contributor. Eisenberg said the company has approximately 4,000 systems installed at customer sites and intends to further monetize its service infrastructure. Service revenue grew 40% in 2025, according to the company.

The company also plans to launch AI-based software offerings in 2027. Management said the acquisition of Visual Layer, completed about six months earlier, accelerated its AI capabilities and could support a new software revenue stream beginning in 2027.

Regarding silicon photonics, Langer said approximately 5% of current orders are tied to photonics-related applications, including photonic integrated circuits and distributed-feedback lasers. He said the opportunity is still relatively small but could ramp more substantially in 2028 and beyond.

Management said manufacturing partners have expanded capacity to support expected demand and that Camtek’s operational infrastructure could support additional shipments if demand exceeds its current outlook.

M&A Strategy and Market Position

Executive Chairman Lior Aviram said Camtek is pursuing acquisitions in two areas: smaller transactions that add technology or teams to its core business, and potentially larger acquisitions in adjacent businesses. He said the company reviewed more than 100 opportunities over the past year and a half.

Aviram said the company is applying discipline around management quality, growth, profitability and potential synergies in evaluating transactions. Camtek also has more than $800 million on its balance sheet to support growth initiatives and potential acquisitions, Eisenberg said.

During the question-and-answer session, management said China accounts for about 45% of Camtek’s business and is expected to remain at least as strong in 2027 as it is in 2026, based on current backlog and visibility. Langer acknowledged local competition in China but said the company’s installed base and customer relationships remain important advantages.

Management also said the $800 million figure for 2027 is an outlook rather than formal guidance and could increase if market demand strengthens. “We will have the ability to supply more,” Segev said.

About Camtek (NASDAQ:CAMT)

Camtek Ltd. NASDAQ: CAMT is an Israel-based provider of inspection and metrology systems used in semiconductor manufacturing. The company develops equipment and software designed to identify defects, measure wafer and package characteristics, and support process control during the production of integrated circuits.

Camtek's product portfolio serves a range of applications, including advanced packaging, heterogeneous integration, chiplets, memory, foundry and logic manufacturing, and other high-density semiconductor processes.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.