Why EV Chip Stocks Axcelis Technologies, Coherent, and Aehr Test Systems Rallied This Week

Core Insights - Electric vehicle (EV) chip stocks experienced significant gains this week, with Axcelis Technologies, Coherent, and Aehr Test Systems seeing increases of 13.2%, 15.7%, and 16.3% respectively, driven by positive commentary from automotive CEOs regarding a potential recovery in EV sales [1][2] Company-Specific Developments - Axcelis specializes in ion-implant equipment for silicon wafer production, including silicon carbide wafers, and received a price-target upgrade from Bank of America, increasing from $115 to $125, leading to a stock surge from approximately $111 to $127 [2][5] - Coherent appointed Jim Anderson as its new CEO, a move that was well-received in the market, contributing to a surge in its stock price even before positive EV sales news [5] - Aehr Test Systems has been actively presenting at industry conferences, highlighting optimistic growth prospects for its testing systems, and has announced new engagements with memory and AI accelerator customers, expanding beyond its core SiC auto chipmaking base [6] Industry Trends - The EV market, which had previously experienced a slowdown, is showing signs of recovery, with General Motors reporting its best month for all-electric vehicle sales in May and Ford disclosing a 65% increase in all-electric vehicle sales for the same month [3][4] - Coherent projects that the silicon carbide market will grow at an average rate of 28% from 2022 to 2030, expanding from $3 billion to $21 billion, indicating a potential long-term investment opportunity in EV chip stocks [7]