Aehr Test Systems Secures $10 Million Order for AI Chip Testing Equipment, Expanding into AI Market

Why Aehr Test Systems Rocketed Higher This Week | The Motley Fool

This week's move was all the more notable since the market sold off hard in the wake of the Federal Reserve's rate decision and 2025 guidance on Wednesday. Defying the market's gravity, Aehr made an exciting AI-related announcement that got the stock moving higher once again. Aehr Test makes wafer testing and burn-in equipment that stresses semiconductors to high voltages while still on the wafer on which they're produced. This differs from the traditional approach of testing finished modules, which is costlier. Testing chips under harsh voltage and heat conditions is of utmost importance for applications like auto and industrial chips. But with the high amounts of heat produced by today's leading-edge AI processors, Aehr is now targeting testing AI accelerators too. And as investors are well aware, the AI chip market is skyrocketing. On Monday, Aehr announced that it had received its first $10 million order from an AI chip customer. CEO Gayn Erickson noted in the press release: This marks a technology and commercial breakthrough for Aehr as it significantly expands the market opportunities for our FOX-XP wafer level test and burn-in systems. This new AI customer recognizes the substantial advantages of conducting production test and burn-in at wafer level, before integration into the final product. Prior to this, Aehr had pretty much been limited to testing silicon carbide and other auto chips for electric vehicle customers. Given the severe slowdown in the auto and industrial market over the past year, Aehr had suffered, with revenue down 36% and earnings per share (EPS) down 85% in the last reported quarter ending Aug. 31. The $10 million order should be a significant boost, as revenue only amounted to $13.7 million in total last quarter. For the year ending in May, Aehr forecasts $70 million in revenue. Aehr's stock is still down significantly from its highs even after this week's surge. However, the announcement marks a big milestone, as the business may not be quite as beholden to the cyclical auto market anymore.

Why Shares in Aehr Test Systems Shot Higher by 25% Today (Hint: It's AI Related) | The Motley Fool

Shares in Aehr Test Systems (AEHR 25.67%) were up nearly 25% by midday on Monday. The startling increase comes on the day the company announced a landmark $10 million in initial production orders for semiconductor test and burn-in equipment (whereby semiconductors are tested under electrical stress) for an artificial intelligence (AI) customer. It's important for three reasons. First, the size of the deal is significant, not least for a company estimated by Wall Street analysts to generate just $70.8 million in revenue in 2024. Second, the deal with an AI customer helps diversify Aehr's end-market revenue. The company is known for its role in the silicon carbide chip market used in electric vehicle (EV) power electronics. This latest deal helps diversify Aehr's end-market revenue streams, and it also confirms the optimism expressed on the fiscal 2025 first-quarter earnings call in October when CEO Gayn Erickson discussed potential orders from an "AI accelerator company" and said, "As we've noted before, based on the production forecast, we believe they could potentially be more than a 10% customer for us this fiscal year alone." Management appears to have delivered on that promise. Third, Aehr is a company that investors believe carries significant risk due to its customer concentration. For example, in its fiscal 2024, ended May 31, two customers were responsible for 67% and 17% of its net revenue, and it was even more concentrated in 2023 with two customers accounting for 79% and 10% of its revenue. All it takes is one significant customer to scale back expectations for investment, and Aehr's growth expectations will be slashed. That, in fact, has happened in recent years as relatively high interest rates have negatively impacted electric automaker's capital investment plans. The deal opens up new markets, and with the possibility of a low interest rate environment improving, or at least stabilizing EV capital investment, the scene is set for Aehr Test Systems to grow strongly in the coming years, and with more diversified revenue and customer streams.

What's Going On With Aehr Test Systems Shares Monday? - Aehr Test System (NASDAQ:AEHR)

The first FOX-XP system is scheduled to ship immediately and the remaining systems and WaferPaks will be delivered within 90 days. Aehr Test Systems AEHR stock is trading higher on Monday after the company announced that it secured a $10 million order for artificial intelligence semiconductor testing equipment. The Details: The $10 million order includes multiple high-power FOX-XP wafer-level test and burn-in systems, as well as several sets of Aehr's proprietary WaferPak Contactors. This technology allows customers to perform production wafer-level burn-in for AI processors. It helps reduce costs and improve yields by identifying early life failures during production while the devices are still in wafer form, prior to assembly into modules or systems. "This marks a technology and commercial breakthrough for Aehr as it significantly expands the market opportunities for our FOX-XP wafer level test and burn-in systems," said Gayn Erickson, CEO of Aehr. The first FOX-XP wafter system is scheduled to ship immediately, with the remaining systems and initial WaferPaks set to be delivered within 90 days. Related Link: Here's How Much You Would Have Made Owning Applied Mat Stock In The Last 15 Years AEHR Price Action: At the time of publication, Aehr stock is trading 20.9% higher at $13.94 , according to data from Benzinga Pro. Image: 5475664 from Pixabay. Market News and Data brought to you by Benzinga APIs

Aehr Test Systems Secures Initial $10 Million in Orders for Production Wafer-Level Burn-In of Advanced AI Processors

Aehr Test Systems announced a significant milestone with the receipt of its first artificial intelligence (AI) customer order for multiple high-power FOX-XP? wafer level test and burn-in systems and multiple sets of Aehr Test proprietary WaferPakTM Contactors. These initial volume production orders are valued at over $10 million with the first system scheduled to ship immediately and completion of the shipments of the systems and initial product WaferPaks within 90 days. The FOX-XP and FOX-NP systems, available with multiple WaferPak Contactors (full wafer test) or multiple DiePakTM Carriers (singulated die/module test) configurations, are capable of functional test and burn-in/cycling of devices such as artificial intelligence processors and accelerators, silicon carbide and gallium nitride power semiconductors, silicon photonics as well as other optical devices, 2D and 3D sensors, flash memories, magnetic sensors, microcontrollers, and other ICs in either wafer form factor before they are assembled into single or multi-die stacked packages, or in singulated die or module form factor.