aehr

Today's US stock picks｜#AEHR revenue is still declining, but orders exploded

AEHR makes chip testing and burn-in equipment. As AI chips consume more power, they must undergo repeated high-temperature, high-voltage tests before leaving the factory to screen out chips that are likely to fail early. The more expensive the chip and the more complex the system, the less this kind of inspection can be skipped.

In the latest quarter, revenue was $10.30 million, down 44% year over year. Net loss was $3.20 million, and the earnings report doesn’t look great. However, in the same period, new orders totaled $37.20 million. The orders-to-shipments ratio exceeded 3.5x, and the backlog of effective orders reached $50.90 million.

The company then also secured an additional $41.00 million AI chip testing order. Total orders over the past six months have already exceeded $92.00 million. Customers are buying high-power custom AI chip testing, as well as silicon photonics and data center testing capabilities. These orders will begin deliveries in the new fiscal year.

Risks are also clear: a single customer accounted for 42% of the company’s revenue in the quarter. Gross margin fell to 32.7%. Over the past six months, the share price has risen 369%, meaning the market has already priced in the expectation that all orders will fully materialize. Any delivery delays or reductions in AI customer spending could trigger a quick pullback.

My suggestion is: the company is worth following, but don’t chase at the current price.

For the next earnings report, focus on just two things: whether orders turn into revenue, and whether gross margin can recover. AEHR’s real value isn’t when order news is hottest—it’s when results start to catch up to expectations.

#美股 #AEHR #AI芯片