In the cc, AEHR noted that William Blair forecasts demand for SiC wafers to grow from 220,000 in 2022 to over 4.5 million in 2030. More than 20x. That’s a 45% CAGR.
Not sure there’s a direct correlation with AEHR’s revenue for testing those, but it is encouraging.
That said, there are a ton of risks. I’ve taken a lot of profit today, so this is once again a small (sub-5%) position for me. Still…if we want big long term gains, they’re not going to come from companies that are already well known and understood. We might get 20% returns from Zscaler and Crowdstrike and BILL and AXON (my top 4 holdings) over the next several years, 30% if we’re super lucky and trade them fortuitously. Same goes for Snowflake and Samsara and Datadog if we can get them at the right price…at current prices, personally I expect the return on these to be less than that (though I own 2 of these 3). But if we want to shoot for more, we’ll need to find companies like AEHR.
Bear