The devastating correction in electric vehicle stocks found reprieve after Aehr Test Systems (AEHR) doubled its stock price in July. The firm posted non-GAAP earnings per share of $0.84, despite revenue falling by 25.5% Y/Y to $16.6 million.
Markets are reacting positively to Aehr forecasting revenue would grow by less than 10% in fiscal 2025. Investors are bullish on Aehr’s acquisition of Incal Technology. This adds incredible products to the company’s offering, which would address the ultra-high power semiconductor market. This includes the artificial intelligence processor market.
Incal Technology makes reliability tests and burn-in solutions. It has a wide addressable market. This includes testing solutions for AI accelerators, graphics, and network processors.
In biotechnology, the fantasy for Cassava Sciences (SAVA) ended. First, a Maryland grand jury indicted Professor Hoau-Yan Wang for falsifying data. Research that supported Cassava’s Alzheimer’s drug, simufilam, is now in question.
On July 17, 2024, CEO Remi Barbier resigned. Richard Barry will take over until the firm finds a permanent CEO. The abrupt management change adds uncertainty to the firm’s future. Bearish investors who have a 29.16% short float profited greatly. Expect the stock to rally occasionally but to fall to the single digits, prices not seen since 2020.
