Aehr Test Systems (AEHR +11.90%) stock is seeing another day of big gains in Thursday’s trading session. The company’s share price was up 13.2% as of 12:30 p.m. ET and had been up as much as 24.9% earlier in trading.
Aehr stock is surging today thanks to news that the company has landed another big contract with a cloud hyperscaler customer. As of this writing, the company’s share price is now up 311% year to date.
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Aehr soars on new deal announcement
Aehr published a press release today announcing that it had landed a $41 million production expansion order from its biggest cloud hyperscaler customer. The new purchase deal includes test and package-level burn-in solutions used for application-specific integrated circuits (ASICs) for artificial intelligence applications. Aehr will also be providing turnkey burn-in modules and device-specific sockets as part of the deal.
Today’s Change
(11.90%) $8.71
Current Price
$81.93
Key Data Points
Market Cap
$2.3B
Day’s Range
$80.66 – $91.23
52wk Range
$7.71 – $91.23
Volume
213K
Avg Vol
2.2M
Gross Margin
30.72%
What’s next for Aehr?
Aehr stock has been red hot this year as new contract wins have continued to strengthen the company’s backlog outlook. With a market capitalization of roughly $2.6 billion, the company is now valued at approximately 53 times this year’s expected sales. While that growth-dependent valuation suggests that Aehr stock is a risky play, the company’s rapidly expanding backlog suggests the business could continue to serve up wins in conjunction with growth for ASICs and other AI chips.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.