Aehr Test Systems receives follow-on orders for AI processor testing

FREMONT - Aehr Test Systems (NASDAQ:AEHR), whose stock has surged 17% in the past week and currently trades at $16.45, announced Tuesday it has received follow-on orders from a leading hyperscaler customer for eight Sonoma ultra-high-power systems to be used for volume production test and burn-in of AI processors.

The orders represent more than a doubling of production systems with this customer, according to the company. The systems will ship from Aehr’s Fremont, California facility over the next six months. With a healthy current ratio of 5.68 and gross margins of 44%, InvestingPro data shows the company maintains strong operational efficiency despite its moderate debt levels.

Gayn Erickson, President and CEO of Aehr Test Systems, said the customer is developing its own AI processors and expanding capacity, with plans to ramp production over the next year.

The Sonoma systems feature active liquid-cooled conductive temperature control and support power dissipation of up to 2000W per device. According to the company, the systems offer technological advantages including a streamlined architecture, high Overall Equipment Effectiveness, and precision power delivery.

Aehr’s systems enable customers to perform production burn-in screening, qualification, and reliability characterization for various processors including GPUs, AI processors, CPUs, and network processors.

The company cited data from Strategy and Stats Insider indicating the AI chip market, valued at over $60 billion in 2023, is projected to grow to more than $600 billion by 2032. For investors interested in deeper analysis of AI sector opportunities, InvestingPro offers comprehensive research reports covering 1,400+ stocks, including detailed financial health scores and Fair Value assessments for companies like Aehr Test Systems.

Aehr Test Systems provides test solutions for testing, burning-in, and stabilizing semiconductor devices in various forms. The company recently expanded its product portfolio through the acquisition of Incal Technology, Inc., adding high-power packaged part reliability/burn-in test solutions for AI semiconductor manufacturers.

This article is based on a press release statement from Aehr Test Systems.

In other recent news, Aehr Test Systems reported a decline in its fiscal fourth-quarter revenue, posting $14.1 million compared to $16.6 million in the same period last year. The company also recorded a net loss of $2.9 million, a significant change from the GAAP net income of $23.9 million reported in the previous fiscal year. Analysts had projected revenue of $14.8 million, indicating a 4.73% shortfall in actual results. Despite this revenue miss, Aehr Test Systems met earnings per share forecasts for the quarter. Investor sentiment appeared positive in aftermarket trading, although specific reasons for this optimism were not detailed in the reports. These developments come amid ongoing strategic initiatives by the company, which some investors view as promising for future growth.

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