Aehr Test Systems Revenue Growth
Aehr Test Systems (NASDAQ: AEHR) experienced a 35.5% increase in stock price in June, driven by positive developments in new end markets. Currently, 90% of Aehr’s revenue is from the silicon carbide (SiC) wafer-level burn-in (WLBI) market, primarily linked to the electric vehicle (EV) sector, which analysts predict will face challenges, including a forecasted 16.5% decline in sales for ON Semiconductor in 2025.
Diverse Revenue Streams
To offset potential declines in its core market, Aehr is diversifying into new revenue streams, with SiC WLBI revenue dropping to less than 40% and burn-in for AI processors making up over 35% of its business. In Q3 earnings, the company reported that four customers, three from new markets, contributed to 10% of its revenue, focusing on WLBI for AI processors, packaged part burn-in for AI processors, and WLBI for gallium nitride (GaN) semiconductors.
Market Speculation
Following NVIDIA’s positive earnings report, interest in AI and GaN WLBI spending is expected to grow. The involvement of GaN semiconductor company Navitas Semiconductor in NVIDIA’s future data center plans, starting in 2027, leads to speculation that Navitas could become a future customer of Aehr Test Systems.
