As the dust settles on the sell-off in the global AI markets, investors are getting a better view of AI companies’ prospects. A Singapore semiconductor counter has also experienced this mini-sell-off and is looking attractive now.

AEM Holdings' share price declined from a peak of SG$10.95 at the start of July 2026 to SG$9.31 as of 7 July 2026. This represents a potential opportunity for this semiconductor testing stock that has gained by 440% since the beginning of the year. 

AEM Holdings provides testing solutions for semiconductors and electronic components. If a semiconductor company wants to test whether its products and chips are defective, AEM Holdings does it for them. And if they want to produce a specific component, AEM does that too. Its businesses can be divided into three segments - test cell solutions (63% of revenue), contract manufacturing (35%), and instrumentation (2%).

Revenue was up by 5% to SG$399 million in 2025 from SG$380 million in 2024, driven mainly by higher revenue from the test cell solutions segment. Demand from its AI and High Performance Computing (HPC) clients ramped up during the year, while its high-parallel and high-power test capabilities were also in demand. Meanwhile, its profits also rose by 47.8% to SG$17 million from SG$11 million over the same period.

This is a welcome development considering that the company made a loss of SG$1.1 million in 2023 as the previous technology cycle of EVs and smartphones ended. Revenue has started to pick back up after it reached a peak of SG$870 million in 2022, before dropping by half in 2023.

Despite the sourish mood in the AI industry now, AEM Holdings is considered a ‘shovel’ for the AI chip supply chain. It provides the critically important back-end services and solutions to AI chip companies. AI companies are still investing heavily in their infrastructure in data centres and chip manufacturing, so there is visibility to AEM Holdings' revenue stream for the next couple of years. 

Chiplet counts are increasing, as the industry shifts to more complex chip architectures to serve the AI sector. With higher chiplets, also come higher power and thermal demands. AEM is well-positioned to capitalise on this trend based on its high-parallel test solutions. The global data centre CPU market is projected to grow by 8% every year to about US$26 billion in 2033.

Analysts in the market have set an average target price of SG$15.6 with an implied upside of +45.9%.

Meanwhile, AEM is trading at expensive valuations with a price-to-book ratio of 5.9 times compared to the industry average of 2.0 times. 

Source: Shareinvestor

AEM Holdings still represents a solid semiconductor testing company that acts as a ‘shovel’ for the AI chip supply chain. While its valuations are high, market analysts still think it has legs to run. 

Investors who are keen on getting in on the testing solutions sub-segment can take a look at AEM.