Why Aehr Test Systems Rallied Today
Shares of Aehr Test Systems (NASDAQ: AEHR) rallied today, rising 9.3% as of 11:52 a.m. ET, defying the broader tech market, which was down significantly.
Aehr announced its first-ever order for gallium nitride (GaN) chips today. This order represents an expansion of Aehr's addressable market, which management had predicted. That in turn lends credibility to Aehr's management and thus optimism for the company's future.
This morning, Aehr put out a press release saying it had secured an order for its Fox WaferPak Aligner testing machines for a customer's GaN chips. GaN is a novel material that offers higher power conversion efficiency than traditional silicon. While not quite as efficient as silicon carbide (SiC), it is also less expensive to produce, making GaN a solid choice for certain applications like fast chargers for consumer electronics as well as some parts of vehicles, data centers, and solar voltaic systems.
Source Fool.com
