Should you invest in AEM shares now?

• AEM Holdings Ltd (SGX: AWX) share price rose to an intraday high of S$4.28 on Thursday (16 June)
• The Singapore-based company’s market cap is down by 19% year-to-date
• Analysts foresee a 46.2% upside potential for the stock in the next 12 months
• Keen to trade AEM shares? Open an account with us to long or short the stock.

AEM stock price: what’s the latest?

AEM Holdings shares rallied 1.4% on Thursday, following the company’s announcement to expand its US, Malaysia, and Singapore operations. The stock eventually closed the session even at S$4.20 a share.

The semiconductor solutions provider has declined by approximately 4% in the last one month. It is also down 19% on a year-to-date basis.

In terms of outlook, AEM shares have an average rating leaning towards ‘outperform’ and price target of S$6.14 (equating to a 46.2% upside potential from the stock’s last traded price), according to the latest SGX StockFacts data.

The latest investment note came from UOB’s equity research team, who reiterated a ‘buy’ call and a price target of S$5.60 on 2 June.

AEM to create 300 new jobs in the US, Malaysia, and Singapore

AEM will begin operating new manufacturing sites and facilities – including research and development (R&D) centres – in the US, Malaysia, and Singapore by the end of the third quarter this year.

The new locations will more than double the AEM’s current manufacturing space in the three countries and create over 300 additional jobs.

‘The ability to tap on a diverse talent pool and the high growth potential of Malaysia and Singapore is what makes the region an attractive location for AEM,’ said Juha Arola, AEM’s Chief Operating Officer, in a press release.

‘Our expansion will allow us to better scale up our testing and handling capabilities in tandem with our customers’ needs. It also further solidifies AEM’s position as a hub in the region and its position as a critical node in the global semiconductor supply chain,’ he added.

In Malaysia, AEM will be setting up an R&D lab in Penang that will focus on delivering technologies and solutions for advanced, integrated semiconductor test needs. AEM will double its headcount in Malaysia to support the expansion, including new roles for technicians, engineers, customer support group, and supply chain management.

AEM’s US expansion will include R&D, prototyping, and manufacturing in Arizona and California, while the expansion in Singapore will focus on R&D.

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