Aehr Test Systems (NASDAQ:AEHR) said Monday it received additional orders for six Sonoma packaged part burn-in systems from a major hyperscaler building artificial intelligence processors, and its stock surged on the news. The systems will ship from Aehr's Fremont, California, facility over the next two quarters.
Investors pushed the stock up after the announcement, reflecting confidence in continued demand for Aehr's test equipment. The latest order comes just weeks after a similar purchase, underscoring the accelerating adoption of the company's technology.
The customer, identified only as one of the world's largest cloud providers, will use the systems to test AI chips designed for massive-scale workloads. CEO Gayn Erickson said the commitment highlights the value of Aehr's high-power solutions and confirmed the company is already engaged with the hyperscaler on future chip generations.
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Tech giants, including Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc.’s Google (NASDAQ:GOOGL) (NASDAQ:GOOG), and Meta Platforms Inc. (NASDAQ:META), have been building their own AI processors to optimize workloads such as natural language processing and recommendation systems, while reducing reliance on outside semiconductor suppliers.
Industry projections underscore the opportunity. According to Strategy and Stats Insider, the AI chip market, worth more than $60 billion in 2023, is expected to surpass $600 billion by 2032. Growth is being fueled by data centers, robotics, and autonomous vehicles, all of which demand highly reliable processors.
Aehr's Sonoma systems are designed to streamline burn-in and reliability testing directly in package form. The systems provide per-device power delivery, liquid-cooled sockets, and advanced digital controls aimed at lowering costs, improving quality, and speeding time to market.
Investor enthusiasm has also been lifted by broader momentum in AI hardware. As noted in Aehr, stock is trading higher, recent trading activity shows a growing appetite for smaller semiconductor equipment firms poised to benefit from the shift toward custom AI chips.
Related ETFs: VanEck Semiconductor ETF (NASDAQ:SMH), and iShares Semiconductor ETF (NASDAQ:SOXX).
Price Action: AEHR shares were trading higher by 33.04% to $24.08 at last check Monday.
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