Latest news with #AehrTestSystems
Yahoo
4 days ago
- Business
- Yahoo
Aehr Test Systems, Inc. (NASDAQ:AEHR) Receives Follow-on Orders
Aehr Test Systems, Inc. (NASDAQ:AEHR) is one of the Best Semiconductor Stocks to Buy Under $20. On July 22, the company announced that it received follow-on orders from its lead production AI processor customer for package part burn-in for 8 Sonoma ultra-high-power systems to be utilized for volume production test and burn-in of their AI processors. Such systems are expected to be shipped from Aehr Test Systems, Inc. (NASDAQ:AEHR)'s high-volume production facility in Fremont, California, over the upcoming 6 months. A technician overlooking a circuit board being built and tested for a semiconductor device. Aehr Test Systems, Inc. (NASDAQ:AEHR) has tagged this company as 'one of the premier large-scale data center hyperscalers.' The company opines that its Sonoma systems provide the lowest-cost solution on the market. The types of processors and applications for AI continue to evolve rapidly, moving beyond general-purpose GPU-based processors for large language models and inference to ASICs designed for specialized accelerator functions in data centers and hyperscalers. Aehr Test Systems, Inc. (NASDAQ:AEHR) also highlighted that AI processors are becoming important in autonomous vehicles, robotics, and security applications. With the company's comprehensive portfolio of reliability test and burn-in solutions tailored for AI semiconductors, there are expectations that Aehr Test Systems, Inc. (NASDAQ:AEHR) remains well-placed to capture a meaningful share of the growing market. Aehr Test Systems, Inc. (NASDAQ:AEHR) offers test solutions for testing, burning-in, and semiconductor devices in wafer-level, singulated die, package part form, and installed systems. While we acknowledge the potential of AEHR 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. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
25-07-2025
- Automotive
- Yahoo
How AI Sent Aehr Test Systems Stock Surging Higher This Week
Key Points A follow-on deal from its lead customer sent the stock racing higher this week. Aehr's core end market will recover in time. 10 stocks we like better than Aehr Test Systems › Aehr Test Systems (NASDAQ: AEHR) stock rose 41.5% in the week to Friday morning, as investors continued to digest the news of follow-on orders from a major customer that management describes as "one of the premier large-scale data center hyperscalers." It's a big deal for several reasons. Here are a few of them. Aehr Test Systems' big deal As previously discussed, the name of the customer hasn't been revealed; however, it's worth noting that Aehr cites Alphabet's Google and Microsoft as customers in its most recent company presentation, and both fit the description outlined by CEO Gayn Erickson in the press release disclosing the deal. The deal is significant as it's a follow-on deal from Aehr's "lead production artificial intelligence (AI) processor customer" for eight high-power systems to be "used for volume production test and burn-in of their AI processors." Given the explosion in AI application demand and the ongoing ramp-up in capital spending on developing AI processors, Aehr's orders growth could be in an early innings stage. For reference, both Google and Microsoft are developing their AI processors. It's an exciting and relatively new market for Aehr, and discussing its potential size on the company's recent earnings call, Erickson said, "You go through the math and the market is 3 to 5x larger than the silicon carbide was." More diversified revenue and earnings By "silicon carbide," Erickson is referring to Aehr's traditional core business of SiC wafer-level burn-in (WLBI) test equipment. The SiC chip market is driven by electric vehicle (EV) investment, and SiC WLBI accounted for 90% of Aehr's revenue in its fiscal 2024 (the company's fiscal year-end is May 30), but dropped to less than 40% in fiscal 2025 due to a slowdown in EV spending. As such, the new AI-driven orders are a demonstration of Aehr's ability to open new markets while waiting for the inevitable recovery in the EV market. It adds up to make Aehr an exciting long-term growth stock. Should you buy stock in Aehr Test Systems right now? Before you buy stock in Aehr Test Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Aehr Test Systems wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. How AI Sent Aehr Test Systems Stock Surging Higher This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Automotive
- Yahoo
Here's Why Aehr Test Systems Blasted Higher Today (Hint: It's AI Related)
Key Points Major new orders lifted the stock today. Speculation will turn to who that customer might be, but in any case, Aehr is diversifying its end markets. Its core end market is likely to return to growth in time. 10 stocks we like better than Aehr Test Systems › Shares in Aehr Test Systems (NASDAQ: AEHR) had blasted higher by more than 20% at 10 a.m. today on the news of follow-on orders for its artificial intelligence (AI) processor volume production test and burn-in solutions. New orders, new optimism? The news comes less than two weeks after the company released its fourth-quarter 2025 earnings report. Back then, CEO Gayn Erickson took a cautious approach to financial guidance for 2026, saying, "While we remain confident in Aehr's long-term growth prospects, we continue to experience some timing-related delays in order placements due to tariff-related uncertainty, particularly in our first quarter." The order delays, or at least some of them, were cleared much more quickly than Erickson may have expected. Aehr's hyperscaler customer Speculation will now turn to the identify of the "world-leading hyperscaler" that made the orders for eight of Aehr's Sonoma ultra-high-power systems, not least as the orders result in "a more than doubling of the number of production systems with this customer." It's impossible to know unless Aehr or the customer itself divulges the information. Still, a quick look at Aehr's customer list in its latest investor presentation shows Alphabet's Google and Microsoft -- good places to start looking. Image source: Getty Images. Aehr's long-term growth prospects In a sense, the customer doesn't matter as much as the fact that Aehr continues to diversify away from the currently challenged silicon carbide (SiC) wafer-level burn-in (WLBI) test solutions market and into new growth markets. The demand for SiC WLBI equipment is primarily driven by electric vehicles, and the softening of investment in EVs is slowing down demand. However, Aehr's new AI-driven markets will strengthen the company's long-term growth prospects, and it's only a matter of time before EV investment picks up again, leaving Aehr well positioned for long-term growth. Should you buy stock in Aehr Test Systems right now? Before you buy stock in Aehr Test Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Aehr Test Systems wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Globe and Mail
19-07-2025
- Business
- Globe and Mail
3 Tech Stocks With More Potential Than Any Cryptocurrency
Key Points Snap continues to grow in the shadow of its bigger social media competitors. Lemonade will keep expanding its AI-powered niche of the insurance market. Aehr could profit from the growth of the EV and AI markets. 10 stocks we like better than Snap › Cryptocurrencies might seem like good investments for speculative investors since many of the top tokens delivered market-crushing gains over the past decade. Yet past performance never guarantees future gains -- and a lot of cryptocurrencies still trade on the headlines instead of their scarcity or the utility of their underlying blockchains. Instead of loading up your portfolio with risky cryptocurrencies, it might be smarter to invest in some high-growth tech stocks, instead. Here's a look at three of those stocks -- Snap (NYSE: SNAP), Lemonade (NYSE: LMND), and Aehr Test Systems (NASDAQ: AEHR) -- to see why they might be better buys than any cryptocurrency. Snap Snap, the parent company of Snapchat, suffered a slowdown in 2023. This was due to Apple 's privacy changes on iOS, intense competition from ByteDance's TikTok and Meta 's Instagram, and tough macro headwinds, which all throttled the company's ad sales. It also struggled to gain new daily active users (DAUs) in its core North American market. But in 2024, Snap's revenue rose 16%. That acceleration was driven by: Robust overseas growth Fresh first-party ad tools that addressed Apple's iOS changes Snapchat+ subscriptions Artificial intelligence (AI)-powered AR lenses Spotlight's video recommendations In the first quarter of 2025, the company's DAUs grew 9% year over year to a record high of 460 million. Snap didn't provide any additional guidance because it expects the tariffs and macro headwinds to impact its ad sales to Chinese e-commerce companies. But for the full year, analysts still expect revenue to rise 9% to $5.84 billion as the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grows 6%. From 2024 to 2027, they expect revenue and adjusted EBITDA to grow at a compound annual growth rate (CAGR) of 10% and 32%, respectively. These are solid growth rates for a stock that trades at just 3x this year's sales and 29x adjusted EBITDA. If Snap continues to expand, it might impress the bulls again and beat the top cryptocurrencies. Lemonade Lemonade carved out a high-growth niche in the insurance market with its AI-driven platform, which streamlines the onboarding and claims process with chatbots and algorithms. That digital-native approach made it a popular option for younger and first-time insurance buyers. Lemonade initially only offered homeowners' and renters' insurance but expanded with more term life, pet health, and auto plans after its public debut five years ago. It also ceded a portion of the risks from those plans to big reinsurers to insulate itself from bigger losses. The company's growth in customers and in-force premiums slowed down in 2023 as it struggled with delayed rate approvals for its home and auto policies in several states. Those delays forced it to approve fewer policies and curb its near-term expansion. But in 2024, Lemonade's growth accelerated again as it secured those new rate approvals. In addition, its AI-driven pricing model was approved in more states and it ramped up spending again to gain new customers. In the first quarter of 2025, the number of customers grew 21% year over year to a record high of 2.55 million. From 2024 to 2027, analysts expect Lemonade's revenue to rise at a CAGR of 41% as its adjusted EBITDA turns positive by the final year. That's an impressive growth rate for a stock that trades at just 4x this year's sales. If the company keeps locking in new customers, it could deliver bigger gains than a lot of cryptocurrencies. Aehr Test Systems Aehr produces testing and burn-in equipment for chipmakers. It went public back in 1997 but didn't gain much attention until 2021. That's when investors recognized it as a play on silicon carbide (SiC) chips, which can resist higher voltages, operate at higher temperatures, and run on higher frequencies than traditional silicon chips. That resilience makes SiC chips well-suited for lasers, 5G base stations, radars, and electric vehicles (EVs). Aehr is one of the few companies that produce testing and burn-in equipment for SiC chips. Aehr's revenue declined in fiscal 2025 (which ended this May) as it grappled with a soft EV market, tariff-related delays, and a higher mix of cheaper products. But from fiscal 2025 to fiscal 2027, analysts expect its revenue to grow at a CAGR of 22%. They also expect its adjusted EBITDA to turn positive in fiscal 2025 and grow 58% in fiscal 2026. Aehr's near-term catalysts include the AI market's growing demand for its testing and burn-in tools, the EV market's gradual recovery, the expansion of its portfolio with new gallium nitride (GaN) chips and silicon photonics products, and its international expansion. Its stock still looks reasonably valued at 7x this year's sales and could gain a lot more momentum as the EV market warms up and the AI market continues to expand. Should you invest $1,000 in Snap right now? Before you buy stock in Snap, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Snap wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
Yahoo
19-07-2025
- Business
- Yahoo
3 Tech Stocks With More Potential Than Any Cryptocurrency
Key Points Snap continues to grow in the shadow of its bigger social media competitors. Lemonade will keep expanding its AI-powered niche of the insurance market. Aehr could profit from the growth of the EV and AI markets. 10 stocks we like better than Snap › Cryptocurrencies might seem like good investments for speculative investors since many of the top tokens delivered market-crushing gains over the past decade. Yet past performance never guarantees future gains -- and a lot of cryptocurrencies still trade on the headlines instead of their scarcity or the utility of their underlying blockchains. Instead of loading up your portfolio with risky cryptocurrencies, it might be smarter to invest in some high-growth tech stocks, instead. Here's a look at three of those stocks -- Snap (NYSE: SNAP), Lemonade (NYSE: LMND), and Aehr Test Systems (NASDAQ: AEHR) -- to see why they might be better buys than any cryptocurrency. Snap Snap, the parent company of Snapchat, suffered a slowdown in 2023. This was due to Apple's privacy changes on iOS, intense competition from ByteDance's TikTok and Meta's Instagram, and tough macro headwinds, which all throttled the company's ad sales. It also struggled to gain new daily active users (DAUs) in its core North American market. But in 2024, Snap's revenue rose 16%. That acceleration was driven by: Robust overseas growth Fresh first-party ad tools that addressed Apple's iOS changes Snapchat+ subscriptions Artificial intelligence (AI)-powered AR lenses Spotlight's video recommendations In the first quarter of 2025, the company's DAUs grew 9% year over year to a record high of 460 million. Snap didn't provide any additional guidance because it expects the tariffs and macro headwinds to impact its ad sales to Chinese e-commerce companies. But for the full year, analysts still expect revenue to rise 9% to $5.84 billion as the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grows 6%. From 2024 to 2027, they expect revenue and adjusted EBITDA to grow at a compound annual growth rate (CAGR) of 10% and 32%, respectively. These are solid growth rates for a stock that trades at just 3x this year's sales and 29x adjusted EBITDA. If Snap continues to expand, it might impress the bulls again and beat the top cryptocurrencies. Lemonade Lemonade carved out a high-growth niche in the insurance market with its AI-driven platform, which streamlines the onboarding and claims process with chatbots and algorithms. That digital-native approach made it a popular option for younger and first-time insurance buyers. Lemonade initially only offered homeowners' and renters' insurance but expanded with more term life, pet health, and auto plans after its public debut five years ago. It also ceded a portion of the risks from those plans to big reinsurers to insulate itself from bigger losses. The company's growth in customers and in-force premiums slowed down in 2023 as it struggled with delayed rate approvals for its home and auto policies in several states. Those delays forced it to approve fewer policies and curb its near-term expansion. But in 2024, Lemonade's growth accelerated again as it secured those new rate approvals. In addition, its AI-driven pricing model was approved in more states and it ramped up spending again to gain new customers. In the first quarter of 2025, the number of customers grew 21% year over year to a record high of 2.55 million. From 2024 to 2027, analysts expect Lemonade's revenue to rise at a CAGR of 41% as its adjusted EBITDA turns positive by the final year. That's an impressive growth rate for a stock that trades at just 4x this year's sales. If the company keeps locking in new customers, it could deliver bigger gains than a lot of cryptocurrencies. Aehr Test Systems Aehr produces testing and burn-in equipment for chipmakers. It went public back in 1997 but didn't gain much attention until 2021. That's when investors recognized it as a play on silicon carbide (SiC) chips, which can resist higher voltages, operate at higher temperatures, and run on higher frequencies than traditional silicon chips. That resilience makes SiC chips well-suited for lasers, 5G base stations, radars, and electric vehicles (EVs). Aehr is one of the few companies that produce testing and burn-in equipment for SiC chips. Aehr's revenue declined in fiscal 2025 (which ended this May) as it grappled with a soft EV market, tariff-related delays, and a higher mix of cheaper products. But from fiscal 2025 to fiscal 2027, analysts expect its revenue to grow at a CAGR of 22%. They also expect its adjusted EBITDA to turn positive in fiscal 2025 and grow 58% in fiscal 2026. Aehr's near-term catalysts include the AI market's growing demand for its testing and burn-in tools, the EV market's gradual recovery, the expansion of its portfolio with new gallium nitride (GaN) chips and silicon photonics products, and its international expansion. Its stock still looks reasonably valued at 7x this year's sales and could gain a lot more momentum as the EV market warms up and the AI market continues to expand. Should you invest $1,000 in Snap right now? Before you buy stock in Snap, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Snap wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Leo Sun has positions in Apple and Meta Platforms. The Motley Fool has positions in and recommends Apple, Lemonade, and Meta Platforms. The Motley Fool has a disclosure policy. 3 Tech Stocks With More Potential Than Any Cryptocurrency was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
