Axcelis Technologies (ACLS) Rebounded in Q3

American Century Investments, an investment management company, released its third-quarter 2025 investor letter for the “American Century Investments Small Cap Value Fund.” A copy of the letter can be downloaded here. Equities rose strongly in the third quarter, with several hitting record highs. In the third quarter, the US Federal Reserve reduced its benchmark interest rate for the first time in the year. The portfolio aims to invest in small-cap companies that are undervalued and do not accurately represent their quality and potential earnings capability. The investor class of the fund returned 4.69% in the quarter, compared to 12.60% for the Russell 2000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, American Century Investments Small Cap Value Fund highlighted stocks such as Axcelis Technologies, Inc. (NASDAQ:ACLS). Axcelis Technologies, Inc. (NASDAQ:ACLS) engages in the design, manufacturing, and servicing of ion implantation and other processing equipment used in the fabrication of semiconductor chips.  The one-month return of Axcelis Technologies, Inc. (NASDAQ:ACLS) was -5.51%, and its shares gained 15.67% of their value over the last 52 weeks. On January 2, 2026, Axcelis Technologies, Inc. (NASDAQ:ACLS) stock closed at $86.12 per share, with a market capitalization of $2.67 billion.

American Century Investments Small Cap Value Fund stated the following regarding Axcelis Technologies, Inc. (NASDAQ:ACLS) in its third quarter 2025 investor letter:

"Axcelis Technologies, Inc. (NASDAQ:ACLS): After an extended period of underperformance, we think the stock of this semiconductor capital equipment company has performed well. Axcelis has been generating better-than-expected profits amidst stabilizing demand. We think the stock has also likely benefited from improved semiconductor sentiment."

Axcelis Technologies, Inc. (NASDAQ:ACLS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held Axcelis Technologies, Inc. (NASDAQ:ACLS) at the end of the third quarter, up from 29 in the previous quarter. Axcelis Technologies, Inc. (NASDAQ:ACLS) achieved strong performance in the third quarter of 2025, reporting revenue of $214 million and non-GAAP earnings per diluted share of $1.21, both surpassing expectations. While we acknowledge the potential of Axcelis Technologies, Inc. (NASDAQ:ACLS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Axcelis Technologies, Inc. (NASDAQ:ACLS) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.