Camtek's (CAMT) high level of tool customization is its key advantage, and the ability to tailor tools at scale for top-tier clients strengthens its competitive advantage in the inspection and metrology space, Oppenheimer said in a note on Wednesday.

"Camtek is most lauded for high-resolution 3D inspection tools that boost AI chip yields by precisely measuring micro-bumps in high-bandwidth memory stacks and chiplets," the firm said.

About 50% of the company's revenue is tied to AI-related products, particularly those used in advanced packaging of chips, and as semiconductor designs become denser and more complex, Camtek is well-positioned to benefit from growing demand for precise process control, according to the note.

Oppenheimer said it expects Camtek's growth to moderate to 12% this year and 8% in 2026, but it will still exceed the broader wafer fabrication equipment market.

The firm initiated coverage of Camtek with an outperform rating and $100 price target.

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