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

FREMONT, CA - Aehr Test Systems (NASDAQ:AEHR), a $540 million market cap semiconductor testing equipment manufacturer, announced Monday it has received additional follow-on orders for six Sonoma ultra-high-power packaged part burn-in systems from a leading hyperscaler customer for AI processor testing. According to InvestingPro data, the company’s stock has shown significant volatility, with a beta of 2.36, reflecting its sensitivity to market movements.

The systems will be used for high-volume production test and burn-in of advanced AI processors and will ship from Aehr’s Fremont facility over the next two quarters, according to a company press release. With a healthy current ratio of 5.68 and moderate debt levels, InvestingPro analysis indicates the company maintains strong financial flexibility to support its operations and growth initiatives.

This order follows a previous purchase by the same customer last month. The hyperscaler, described as a world-leading provider delivering computing power and storage to millions globally, is developing its own AI processors.

Gayn Erickson, President and CEO of Aehr Test Systems, said the customer has indicated plans to expand capacity for its initial device and add additional AI devices over the next year.

The Sonoma test systems feature a streamlined architecture that delivers more watts per square foot compared to other systems, individual dynamic heating and cooling per device, and precision power delivery for burn-in conditions.

Hyperscalers are increasingly developing their own Application-Specific Integrated Circuits (ASICs) for AI processing to address specific workload demands and improve power efficiency.

Aehr’s systems allow customers to perform production burn-in screening, qualification, and reliability characterization for various processors directly in package form, which the company claims provides a cost-effective solution for transitioning from reliability characterization to full production burn-in.

The AI semiconductor market was valued at over $60 billion in 2023 and is projected to grow significantly in the coming years, according to data cited in the press release. Aehr, with its last twelve months revenue of $59 million and an impressive gross margin of 40.59%, is positioned to capitalize on this growth. Analysts tracked by InvestingPro forecast 8% revenue growth for the company in the next fiscal year. For deeper insights into Aehr’s growth potential and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

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. This revenue figure also fell short of the forecasted $14.8 million, marking a 4.73% shortfall. The company experienced a net loss of $2.9 million, a significant change from the $23.9 million net income recorded in the previous fiscal year. Despite these financial challenges, Aehr Test Systems has received follow-on orders from a major hyperscaler customer for eight Sonoma ultra-high-power systems. These systems will support volume production testing and burn-in of AI processors, and shipments are expected over the next six months. Furthermore, the company’s stock price rose in aftermarket trading, indicating investor optimism about its strategic initiatives. Analyst firms have not provided recent upgrades or downgrades for Aehr Test Systems. The new orders and investor response suggest a potential focus on future growth despite current financial setbacks.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.