Why Aehr Test Systems Stock Soared This Week

Core Insights - Aehr Test Systems' shares increased by 12.5% in the week, reflecting a positive trend in semiconductor stocks and potential new customer growth [1] Company Overview - Aehr Test Systems is experiencing a shift in its customer base and revenue sources in 2025, making it challenging to predict future performance [2] - Traditionally, ON Semiconductor has been Aehr's largest customer, primarily for silicon carbide wafer-level burn-in (SiC WLBI) solutions, which accounted for 90% of Aehr's business in 2024 [3] Revenue Changes - In the current fiscal year, SiC WLBI sales are projected to drop to less than 40%, with AI processors burn-in representing over 35% of revenue [3] - The automotive electric vehicle (EV) market's struggles have impacted ON Semiconductor and other SiC companies [3] Customer Diversification - Aehr has diversified its customer base, with four customers contributing to 10% of its revenue in the third quarter, indicating a shift away from reliance on ON Semiconductor [4] - The new customers include two in AI processor markets and one in the gallium nitride (GaN) WLBI market, suggesting a strategic pivot towards emerging technologies [4] Market Potential - Potential new customers may include major players like Nvidia or other hyperscalers in the AI sector, with Navitas Semiconductor possibly being the GaN customer [6] - Nvidia's recent earnings report supports the notion that the AI market continues to grow, which bodes well for Aehr's future prospects [6] Investor Sentiment - Positive news from customers in Aehr's end markets has led to increased investor interest and stock price appreciation [7]