Camtek sells the cameras and measuring tools that let chipmakers confirm advanced packages are built correctly, and that job has become mission-critical as the industry stacks memory and logic together to feed AI accelerators. The Israeli inspection specialist is now flagging demand that management describes in terms it rarely uses.
An unprecedented order book
Camtek (NASDAQ:CAMT | CAMT Price Prediction) reported Q1 2026 revenue of $121.66 million, beating consensus, with non-GAAP EPS of $0.70. Guidance for Q2 landed at $129 million to $131 million. The bigger signal came from the backlog commentary.
CEO Rafi Amit told investors on the call, "We have already received order and forecast from two HBM manufacturers for our 3D metrology and 2D inspection steps, representing expected revenue exceeding $260 million for 2026 and 2027." He added that second-half 2026 revenue should run over 25% higher than the first half.
The mix tells the story: roughly 50% of revenue was driven by AI-related products, with another 20% from other advanced packaging applications. Management sees total addressable market expanding to over $2 billion in 2027.
Why AI packaging needs Camtek
High-bandwidth memory stacks and 2.5D/3D chiplet assemblies fail if bumps, warpage, or micro-defects go undetected. Camtek’s Eagle G5 and Hawk platforms handle both 2D inspection and 3D metrology, and accounted for 30% of 2025 revenue with revenue expected to double in 2026. The recent Visual Layer acquisition layers AI-based detection, classification, and metrology on top of that hardware, and R&D jumped to $14.32 million from $10.36 million year over year to fund the push.
Peer context
The closest listed comparison is Onto Innovation (NYSE:ONTO), which competes directly in advanced-packaging inspection and metrology. Onto carries a $15.3 billion market cap, a trailing P/E of 143, and is up 94.84% year to date. Front-end giant Lam Research (NASDAQ:LRCX) posted Q3 fiscal 2026 revenue of $5.84 billion, and CEO Tim Archer said "Lam delivered record revenue and EPS in the March quarter as AI-driven demand reshapes the semiconductor industry." Both confirm the capex wave Camtek is riding.
The stock and the setup
Camtek shares closed at $142.50 on July 2, 2026, up 62.82% over the past year but down 24.01% in the past month after peaking near $216. Analyst consensus target sits at $187.25. Eric Bleeker holds Camtek as an active recommendation in The AI Investor Portfolio, a call he originally sized when shares traded near $88 with a $180 target.
What to watch next: Q4 2026 order timing, HBM customer concentration, and margin recovery back toward the 30% operating margin level management is guiding to for the second half.
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