Chip Testing Automation: 1 Stock Set for Many Years of Double-Digit Growth

The semiconductor industry is highly cyclical, with profits soaring in the up years and then slumping in the down years. Consequently, it makes sense to keep a close eye on the cycle, as nobody wants to buy just before the down part of the cycle begins, and everybody wants to buy just before the up part of the cycle begins. There's reason to believe that Aehr Test Systems (NASDAQ: AEHR) is in the latter group, and it could be set for many years of growth. Here's why.Aehr Test Systems provides test solutions for "testing, burning-in, and stabilizing semiconductor devices in wafer level, singulated die, and package part form," according to its filings at the Securities and Exchange Commission. It has traditionally provided wafer-level burn-in (WLBI) test solutions to silicon carbide (SiC) chip manufacturers.Given that the SiC chip end market is dominated by electric vehicles (EVs), Aehr Test Systems' revenue has typically come from EV chipmakers, with ON Semiconductor (NASDAQ: ON) a key customer. It's a concentrated market, and Aehr's traditional customer mix has reflected that with five large customers accounting for 97%, 93% and 77% of total sales in fiscal 2023, 2024, and 2025, respectively. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool