Today's U.S. Stock Recommendation | #AEHR: Revenue Still Dropping, Orders Exploded First

AEHR makes chip testing and burn-in equipment. As AI chips consume more power, they must undergo repeated high-temperature and high-voltage testing before shipment to screen out faulty chips early. The more expensive the chip and the more complex the system, the more indispensable this testing becomes.

In the latest quarter, revenue was $10.3 million, down 44% year-over-year, with a net loss of $3.2 million—not a great earnings report. However, new orders during the same period reached $37.2 million, with a book-to-bill ratio exceeding 3.5x, and effective backlog reached $50.9 million.

Subsequently, the company secured another $41 million in AI chip testing orders, bringing total orders in the past six months to over $92 million. Customers are buying high-power custom AI chips, silicon photonics, and data center testing capabilities. These orders will begin delivery in the new fiscal year.

Risks are also evident: a single customer contributed 42% of quarterly revenue; gross margin fell to 32.7%; the stock price surged 369% in six months, already pricing in full order fulfillment. Any delivery delays or AI customer spending cuts will cause rapid pullbacks.

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

For the next earnings report, focus on two things: whether orders turn into revenue, and whether gross margin recovers. AEHR's real buying opportunity is not when order news is hottest, but when performance starts to meet expectations.

#美股 #AEHR #AI芯片 #Semiconductor