Leading semiconductor test and reliability qualification equipment provider Aehr Test Systems (AEHR) saw its share price jump significantly over the past month due to its above-pre-pandemic revenues and significant improvement in operating profit in its last reported quarter. But although a high volume of orders for its semiconductor equipment should bode well for the stock, its high valuation and uncertain growth prospects could foster bearish investor sentiment. So, let’s find out if the stock can maintain its momentum. Read on.Aehr Test Systems (AEHR) in Fremont, Calif., is a global provider of test systems for burn-in systems, test fixtures, die carriers, and related accessories used in the semiconductor industry. The semiconductor test equipment supplier reported stellar fiscal fourth-quarter earnings on July 15, delivering above-pre-pandemic revenues. Its bookings were up 113% from the prior-year quarter to $5.5 million, while its revenue came in at $7.6 million, doubling from $3.8 million reported in the prior-year period.
Over the past month, the stock has surged 161.9%. Furthermore, AEHR has gained 152.6% year-to-date. The company’s significant advancement in the silicon carbide device market and impressive financial performance have driven the rally.
However, the stock looks significantly overvalued at its current price level. Moreover, given the company’s mixed growth estimates, the stock’s near-term prospects look uncertain.