1 Top Stock for EV Technology -- but Should Investors Bite?
Semiconductor stocks are off to the races so far in 2023. The iShares Semiconductor ETF (NASDAQ: SOXX) is up 28% year to date, compared to a 17% advance for the Nasdaq Composite index, as the chip industry has been showing signs that its cyclical downturn has bottomed and the next bull market is getting ready to gear up.
Then there's tiny Aehr Test Systems (NASDAQ: AEHR). It's up well over 50% so far in 2023, including a sizable pullback from highs following the most recent quarterly update (for the three months ended in February). Aehr stock is a fantastic proxy for the advance of electric vehicle (EV) technology. But investors were hoping for a dramatic upgrade to the current-year financial outlook, which management did not provide. Is it time to buy the recent dip in Aehr Test Systems stock?
Aehr provides testing and "burn-in" equipment for silicon carbide (SiC), a newer type of semiconductor material that can conduct higher voltages and withstand higher heat. It's ideal in the powertrains of EVs -- especially the electric motor and electric charging equipment to and from the battery. Indeed, Tesla's inclusion of SiC chips in the Model 3 a number of years ago helped put SiC on the map.
Source Fool.com
