Chris Forte’s “Thoughts to Start the Day” – AEHR

Posted on June 7, 2022 by Scott Shuda

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Want a greener planet?  Of course you do. STMicroelectronics (STM) is leading the charge in creating semiconductors that will lead to a greener planet. 

Silicon Carbide (SiC) and Gallim Nitride (GaN) are materials being harnessed by STM that REDUCES POWER CONSUMPTION which lead to less heat dissipation, which leads to higher efficiencies, which leads to less carbon emissions…you get the picture.  

SiC and GaN are creating a SEISMIC SHIFT in the power electronics market. Electric vehicles (EV), EV charging, renewable energy, industrial power, and 5G will be transformed by SiC and GaN. 

STM is growing rapidly because of their expertise in the above. The company said it could generate more than $20 billion in revenue by 2025-2027. 

Why is this important to us here on Breakout Investors?  Because Aehr Test Systems (AEHR) will play a key role in the manufacture of SiC and GaN products and the evolution of greener forms of power. AEHR will be in the thick of this revolution.  Whether it’s with STM, Wolfspeed(WOLF) or ON Semiconductor (ON) AEHR will see its revenues grow rapidly.  Oh wait, they already have ON as a customer – the revenue wave has started.  

Luckily for us on Breakout Investors AEHR is expertly covered by Ashleigh Day who made a spectacular call on AEHR back when it was in the low single digits. it subsequently ran up to $27. That’s one great call, and Ashleigh is bullish again on AEHR in the single digits. 

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Eat your WEATies: At $11 WEAT, the wheat ETF,  is back to where it was 3 months ago not long after the Ukraine war started. See the chart in Comments below and check out “Wheat setup for YE22” on the Feed.  

Question:  What are the top five wheat exporting countries?  Answer below

Quickies: 

*Diamcor Mining Inc. (DMIFF) will be presenting at the LD Micro Invitational this morning. 

*Shockwave Medical (SWAV) ended up 12%, decisively clearing the 50 dma. 

*There’s a new BI podcast: Episode #55- INTZ with Aaron Warwick

*Aaron is also out on the Feed with a QIPT update

*News: Quipt Home Medical to join the Russell Microcap Index

*Craig – Hallum says, “INFU remains one of our top ideas” as reported by Neil Cataldi

*Bank of America still likes the diamond mining industry, expects prices to be higher for longer 

*Solar stocks surged as Washington pauses tariffs to promote US production. See the solar ETF TAN chart in the comments.

Check out “Semiconductor shortage over? Cycle turning?” on the Feed posted by Florian Buschek.  The chart shows Days of Inventory (DOI) for semi companies increased 9 days and is now 24 days above the historical median. That’s good news for many industries.

Identiv (INVE) now has a research report. Be sure to see the comments section of the report. Identiv will be a major player in Radio-Frequency Identification “RFID”, particularly Near-Field Communication “NFC”. Their markets are enormous and their product placements will be ubiquitous.  Their lineup of customers is a long, growing list of who’s who across many industries. Revenue growth over each of the next two years will come in between 25-35%. They are under-followed and under-valued, and I’m adding to my large position. 

Answer: The top five wheat exporters are Russia, USA, Australia (13% each), Canada (12%) and Ukraine (8.5%)

On the Queen’s Platinum Jubilee, “It was a star-studded event with performances from Elton John, Rod Stewart and Ed Sheeran. Yeah, when Ed first walked out, the queen was like, ‘Oh, Harry, you’re back.’” — JIMMY FALLON

Good luck to all – Chris

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