Why Aehr Test Systems Stock Was Soaring Nearly 24% Higher Today
Shares of Aehr Test Systems (NASDAQ: AEHR) were up 23.9% today as of 3 p.m. ET. It's a massive jump for the tiny semiconductor industry participant (with a current market cap of just $300 million). Shares are up 600% in the last three-year stretch as its testing equipment for wafer-level hardware is in high demand, especially from the electric vehicle (EV) market. The latest earnings report, from yesterday evening, illustrates this.
Aehr reported revenue of $20.3 million during the fiscal fourth quarter of 2022 (the three months ended May 31). That was a massive 166% year-over-year increase from just $7.6 million a year ago. Even better, adjusted earnings per share skyrocketed from $0.04 last year to $0.23 this last quarter. Huzzah!
During the complex manufacturing process, semiconductors undergo multiple tests to ensure they will operate properly. Aehr is a developer of one type of equipment -- machines that test semiconductor wafers (the silicon that circuitry is later built on top of). This level of testing is particularly important for EVs, since failure of devices could cause the vehicle and battery system to be completely inoperable.
Source Fool.com
