AEM share price in fist of fiery

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In June 2020, AEM share price hit the skid after soaring from $1.30 in March to a high of $3.40 in May. The uncertainties of the new US ban on Huawei, coupled with the announcement that Apple is ditching Intel for its Mac computers, may have took some shine off AEM share price. But in July, AEM share price returned to form and resumed its bullish form again. What has changed?

To put things into perspective, AEM share price roared to life in 2020 because of COVID-19 pandemic, which had caused people to work from home. The pandemic has also resulted in companies turning to technologies for business continuity. Against this backdrop, the demand for chips soared. Consequently, AEM share price went on a bullish streak because the company provides system testing for semiconductor companies.

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AEM share price

Question now is: will AEM share price rocket in the coming months? This is the price level that will propel its market capitalization to $1.4 billion. Translating Sing dollar to US dollar, a $1.4 billion amounts to USD1 billion, which is the right level to seek a listing in Nasdaq. With AEM share price, investors must have the patience because this is an interesting long-term project.

In my opinion, the revelation of AEM share price is long overdue. Previously, this counter may be under the radar for most investors because it can be quite difficult to understand the company’s business model and products. Fundamentally, AEM is an equipment supplier for semiconductor companies but it’s competitive edge lies in its first-mover advantage of its test equipment for Intel in 2016 – High Density Modular Test (HDMT) semiconductor test handler platform. The volume ramp and higher sales led to surging run of AEM share price for the past four years.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. As of 11 May 2020, I am vested in this counter (holding 10,000 AEM shares at $3.35).

AEM share price in turning point

Despite delivering a stellar 1st quarter result, it has not been a bed of rose for AEM share price in recent months. Some headwinds emerged out of nowhere and threatened to derail the outlook for AEM share price. The coming 1H result will provide more clarity for AEM share price but let’s take a look at some of the challenges confronting the Group.

The recent US ban on Huawei might have some impact on the growth momentum of AEM but the impact should be minimal. Following the broke of this news, AEM share price had remained resilient probably because its purported biggest client, Intel, had rolled out a number of new products.

And then there is the bombshell of [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: July 9, 2020 — 6:33 am

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