AEM Holdings (AWX): the SGX small-cap riding the AI test boom

When people talk about AI plays, they usually mean US names. But one of the best performing AI-linked stocks this year is sitting right here on the SGX. $AEM SGD(AWX.SG) is up roughly 6x year to date, and for once the fundamentals are keeping pace with the price.

The latest quarter tells the story. Revenue rose about 36% to S$116.9 million, net profit more than tripled, and net margin jumped from 3.9% to 12.3%. Test Cell Solutions, the core test equipment business, grew 72% and now makes up more than three quarters of the group.

But what does this mean for you as a Singapore investor? The single most important shift is customer mix. For years AEM was effectively an Intel story, which made it a one-customer risk. Now a new fabless AI/HPC customer is on track to become its largest revenue contributor, and a memory maker engagement is widening into DDR and NAND final test. That is real diversification.

Here is what I would actually watch. First, whether the new AI/HPC customer ramp holds, since that is now the main engine. Second, the memory final test opportunity, with early revenue expected late 2026 and a real ramp in 2027. Third, valuation. After a 6x run, analyst targets are all over the place, from very bullish to well below today's price. That spread tells you the market has not agreed on what this is worth.

For local investors, AEM is the rare SGX name that gives you direct AI semiconductor exposure. Just respect that a 6x mover cuts both ways. 🇸🇬