By Megan Cheah

AEM Holdings shares rallied Friday, extending gains from the day before, after the Singapore semiconductor solutions provider reported upbeat results and outlook.

The stock surged as much as 21% to S$2.99, its highest intraday level since 2024. It was recently trading at S$2.97. This comes after it closed nearly 22% higher on Thursday.

The moves were likely fueled by the company reporting earnings on Wednesday. Net profit for the year ended December rose 48% to 16.95 million Singapore dollars, equivalent to US$13.4 million, driven by a better revenue mix.

Its top line for the year increased 5.0% to S$399.3 million, largely due to orders from its artificial intelligence and high-performance computing customer.

AEM also offered its estimates for 2026, projecting revenue of S$460 million to S$510 million. It cited the sustained ramp-up of its AI and high-performance computing customer in response to strong demand for next-generation AI chips.

Analysts cheered the results, noting that it was much better than expected. They also viewed the guidance favorably, with DBS analysts stating that the midpoint of the revenue range came in above consensus estimates.

The Singapore company's forecast implies double-digit earnings growth is likely to resume, said William Tng, analyst at CGS International. He raised his 2026-2027 core earnings-per-share projections by around 48%-50%, citing customer orders.

Along with its earnings prospects, AEM's shares are also likely to gain from liquidity boosts related to Singapore's central-bank-led equity market development program, said Tng.

CGSI raised its rating on AEM shares to add from hold, and lifted its target price to S$3.14 from S$1.85.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

February 26, 2026 21:56 ET (02:56 GMT)

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