Initiation of Coverage: Emerging challenger in semi back-end test

Research evidence excerpt

Initiation of Coverage: Emerging challenger in semi back-end test

Global Research

30 June 2026ab

Initiation of Coverage

EquitiesAEM Holdings

Emerging challenger in semi back-end test Singapore

Semiconductors

12-month rating Buy

Good proxy to CPU structural growth story Prior : No Rating

We believe AEM is well positioned to capitalise on the CPU demand upcycle, and its key 12m price target S$16.00

exposures to x86 CPU industry leaders remain underappreciated. At 32x N12M PE, AEM Prior :

trades at a ~20% PE discount to industry peers despite its strong growth profile. Its high-

Price (29 Jun 2026) S$10.05

parallel system-level and burn-in test platforms, powered by proprietary thermal

capabilities, have gained wider acceptance among the x86 CPU industry leaders over the RIC: AEM.SI BBG: AEM SP

past decade, and it is currently ramping shipments to its two key customers alongside Trading data and key metrics

the customers' CPU production ramps. UBS forecasts rising agentic AI workloads could

52-wk range S$10.90-1.41

drive CPU TAM to grow 5x to US$170bn in 2030 (see UBS US Semi Analyst Tim Arcuri's

Market cap. S$3.19b/US$2.46b

CPU deep dive here). Coupled with continuous scaling of CPU core counts and growing

Shares o/s 317m (ORD)

chip complexity, which drives higher test intensity, we see strong structural tailwinds for

AEM. We initiate coverage with a Buy rating and a S$16/sh price target. Free float 92%

Avg. daily volume ('000) 7,035

Progressive capability accumulation over the past decade Avg. daily value (m) S$56.1

AEM's track record was established a decade ago when it started supplying High Density Common s/h equity (12/26E) S$0.56b

Modular Test (HDMT) handlers to its key logic IDM customer in late-2016, driving a P/BV (12/26E) 5.7x

multi-year revenue ramp.