COHR - Why EV Chip Stocks Axcelis Technologies Coherent and Aehr Test Systems Rallied This Week
2024-06-07 07:37:00 ET
Shares of electric vehicle (EV) chip stocks Axcelis Technologies (NASDAQ: ACLS) , Coherent (NYSE: COHR) , and Aehr Test Systems (NASDAQ: AEHR) rallied this week, up 13.2%, 15.7%, and 16.3%, respectively, through Thursday trading, according to data from S&P Global Market Intelligence .
Each of these companies plays a part in the production and testing of silicon carbide (SiC) chips, a newer compound that is thought to be a key innovation in expanding the range of EVs. While each of these companies had some good company-specific news this week, positive commentary from leading automotive companies on EV sales lit a fire under the group as well, turbocharging this week's returns.
Axcelis makes ion-implant equipment for the production of silicon wafers that need to be infused with other elements, such as silicon carbide wafers. Coherent is an actual producer of silicon carbide wafers, which it then sells to chipmakers. And Aehr Test Systems makes equipment that tests chips for "infant mortality," or those chips that might fail early on. That's very applicable to SiC modules, which is a novel material that can be difficult to produce in volume and which needs to perform in rugged conditions.
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Why EV Chip Stocks Axcelis Technologies, Coherent, and Aehr Test Systems Rallied This Week