Aehr Test Systems Surges as Major Cloud Giant Places Big Order for AI Chip Testing Systems

Aehr Test Systems (AEHR) has received orders for six Sonoma packaged part burn-in systems from a major hyperscaler building AI processors. The systems will ship over the next two quarters, reflecting confidence in continued demand for Aehr's test equipment. The AI chip market is projected to surpass $600 billion by 2032, fueled by data centers, robotics, and autonomous vehicles. Aehr's Sonoma systems are designed to streamline burn-in and reliability testing directly in package form.

FREMONT, CA - Aehr Test Systems (NASDAQ: AEHR), a semiconductor testing equipment manufacturer with a market capitalization of $540 million, has received additional orders for six Sonoma ultra-high-power packaged part burn-in systems from a leading hyperscaler customer for AI processor testing. These systems will be used for high-volume production test and burn-in of advanced AI processors and are expected to ship from Aehr’s Fremont facility over the next two quarters.

The order follows a previous purchase by the same customer last month and reflects the hyperscaler's plans to expand its capacity for 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.

The AI semiconductor market was valued at over $60 billion in 2023 and is projected to grow significantly in the coming years. 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 forecast 8% revenue growth for the company in the next fiscal year.

Despite a decline in fiscal fourth-quarter revenue and a net loss of $2.9 million, Aehr Test Systems has demonstrated resilience with these follow-on orders. The company's stock price rose in aftermarket trading, indicating investor optimism about its strategic initiatives. Analysts have not provided recent upgrades or downgrades for the company.

The AI chip market is projected to surpass $600 billion by 2032, driven by data centers, robotics, and autonomous vehicles. Aehr's Sonoma systems are designed to streamline burn-in and reliability testing directly in package form, providing a cost-effective solution for transitioning from reliability characterization to full production burn-in.

References:
[1] https://ca.investing.com/news/company-news/aehr-test-systems-receives-followon-orders-for-ai-processor-testing-93CH-4174679