Hot stock: AEM climbs as much as 13.4% following contract win

SHARES of mainboard-listed AEM jumped as much as 13.4 per cent on Wednesday (Apr 3) after announcing a contract win for its automated burn-in (ABI) test system.

The counter reached a high of S$2.45 at 9.53 am, up S$0.29. By 10.52 am, shares of AEM were trading 10.7 per cent or S$0.23 higher at S$2.39, with 6.7 million shares changing hands.

On Wednesday, AEM, which provides advanced chip-testing solutions, announced a contract win from a “major fabless provider” of high-performance compute and artificial intelligence (AI) semiconductor chips.

The company’s ABI test system was selected by the customer as a plan-of-record solution to address the latter’s emerging test needs for a new device roadmap.

“This win further expands our industry leadership in advanced, high parallel burn-in solutions and proves that we provide value-added, full turnkey solutions to enable our customers to shift towards Test 2.0 in a cost-effective manner,” said AEM chief executive Chandran Nair.

The systems test products by subjecting them to extended periods of operation under stressful conditions, typically to detect potential defects or weaknesses before they reach the end consumer.

AEM said that it will commence delivery of the system in FY2024, with further deliveries expected in the following years.

Shares of AEM closed 9.3 per cent or S$0.20 higher at S$2.36 on Wednesday, after the announcement.