Ben Cooper

One of the most iconic moments in NBA history

$NOW: "We are AI. We are AI. We are AI." $PLTR: "We deliver."

What's the loudest crowd pop in MLB History?

$AEHR just announced an ATM offering of $60m, which represents around a 3-4% dilution. Aehr Test Systems had been using an ATM selectively to sell shares, largely helping to fund the acquisition last year and R&D. The company guided to return to profitability next quarter. They probably didn't absolutely have to have it, but I like giving them flexibility here. The stock is, unsurprisingly, down 4% after hours.

$AEHR Beyond the record-breaking order, there are numerous other indicators of forward demand accelerating. The most interesting was an announcement in earnings that they were going from being able to produce 20 units (WLBI or PLBI) per month (vs 1-2 current demand) to 40 (technically, MORE than 40), outsourcing the other 20+ Sonoma units to a pair of manufacturers in the space. Why would they need do this? Two reasons. 1⃣MORE ORDERS FROM THIS CUSTOMER "This customer is also developing a significantly higher-power AI accelerator ASIC expected to move to production later this year, and they have already placed an INITIAL order... As these next-generation devices move into volume production, we see the potential for further substantial increases in demand for Sonoma systems and consumables in our next fiscal year." They're wanting to make sure they can produce these and deliver them quickly. That's not an issue with the current orders on the books, but it could be for future orders from this customer. An additional production line would require additional units, and we might see another 20 sold to this customer (at $4m+ a pop). 2⃣MORE ORDERS FROM OTHERS That alone would not be enough to warrant contracting a manufacturer to help scale production from 2 to 40. However, they have a ton of irons in the fire, many of which can be significant revenue drivers. They're expecting "a portion" of these to convert into bookings by the end of this quarter. In essence, this is a signal (as Gayn talked about it the past two quarters) to those considering using Aehr technology that they can meet the demand. That's hugely important, as many in the ATE space are boutique and niche, but are unable to scale. Per Gayn, "We also have significant additional customer demand forecasted over the next few months across multiple markets, including AI processor wafer-level and packaged-part production burn-in, silicon photonics wafer-level burn-in, and silicon carbide and gallium nitride power semiconductor wafer-level production burn-in, and we expect a portion of this demand to convert into bookings before the end of this fiscal year." I don't know that they really need to manufacture 40 units per month any time soon, but they need to show they can handle more than 20 per month or possibly risk losing some future orders.

Look at the Spurs fans!!!! This is how every NBA playoff game should be.