Aehr Test Systems (AEHR +8.09%) 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.
Image source: Getty Images.
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.
NASDAQ: AEHR
Key Data Points
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.
