Why Aehr Test Systems Rocketed 18% Higher Today

Core Insights - Aehr Test Systems reported earnings that exceeded expectations, leading to an 18% increase in share price [1] - The company is expanding into new markets, particularly in artificial intelligence (AI) accelerators, which is a significant growth opportunity [1][3] Financial Performance - For the fiscal first quarter ending in August, revenue decreased by 36.5% to $13.1 million, but this was above analyst expectations [2] - Non-GAAP earnings per share (EPS) was reported at $0.07, significantly higher than the expected $0.01 [2] Market Dynamics - Aehr's testing devices are designed for high-voltage semiconductor testing, which is increasingly relevant for power-hungry chips like silicon carbide (SiC) used in electric vehicles [2] - Despite a decline in electric vehicle sales impacting investment in Aehr's systems, there are signs of stabilization and positive discussions with SiC customers [3] Growth Potential - The company has received its first orders for testing AI accelerators, which are anticipated to experience rapid growth in the coming years [3] - Management projects at least $70 million in revenue for the fiscal year ending next May, with earnings before taxes expected to be at least 10% of revenue [4] - The current market cap of $450 million may seem high, but potential recovery in the electric vehicle market and new applications in GaN and AI could lead to significant revenue growth [4]