{"id":4697,"date":"2025-10-26T05:07:11","date_gmt":"2025-10-26T09:07:11","guid":{"rendered":"https:\/\/www.inflation.us\/news\/?p=4697"},"modified":"2025-10-27T18:11:13","modified_gmt":"2025-10-27T22:11:13","slug":"nia-second-favorite-pick-for-2026-trio-tech-international-has-hired-aehr-test-systems-ir-firm-pondelwilkinson","status":"publish","type":"post","link":"https:\/\/www.inflation.us\/news\/articles\/nia-second-favorite-pick-for-2026-trio-tech-international-has-hired-aehr-test-systems-ir-firm-pondelwilkinson\/","title":{"rendered":"NIA\u2019s #2 Pick for 2026 Trio-Tech International (TRT) Has Hired AEHR’s IR Firm"},"content":{"rendered":"\n

Trio-Tech International (TRT)<\/strong> has hired Aehr Test Systems (AEHR)'s<\/strong> IR firm PondelWilkinson<\/strong> so you will notice the same IR contact in their press releases Todd Kehrli<\/strong>. TRT<\/strong> is finally recognizing their company has an equally important<\/strong><\/span> role in the AI\/EV semiconductor supply chain<\/strong> with stronger earnings<\/strong><\/span> and growth<\/strong><\/span>… yet Trio-Tech International (TRT)'s enterprise value<\/strong> is 0.37x<\/span> revenue<\/strong> vs. AEHR<\/strong> being 13.28x<\/span> revenue<\/strong>.<\/span><\/span><\/p>\n\n

TRT<\/strong> will get revalued to 13.28x<\/span> revenue<\/strong> in 2026 to match<\/span> AEHR's multiple<\/span><\/strong>.<\/span><\/span><\/p>\n\n

This would currently value TRT<\/strong> at $112.37 per share<\/strong>.<\/span><\/span><\/p>\n\n

Trio-Tech International (TRT)<\/strong> is significantly undervalued<\/strong><\/span> compared to Aehr Test Systems (AEHR)<\/strong> when considering… the implications of the AMD-OpenAI partnership<\/span><\/strong>, Trio-Tech's demonstrated<\/span> revenue growth<\/span> momentum<\/span><\/strong>, and the company's hidden exposure<\/strong><\/span> to AI infrastructure expansion<\/span><\/strong>. Their most recent quarterly results<\/strong> show a dramatic<\/strong><\/span> reversal<\/strong><\/span> of the narrative<\/strong> that has driven<\/span> Aehr's premium<\/span> valuation<\/strong>: Trio-Tech's fiscal 4Q 2025 revenue grew by 10.3%<\/span><\/strong> year-over-year to $10.7 million<\/strong>, while Aehr's fiscal 1Q 2026 revenue<\/strong> declined by 16.4%<\/strong><\/span> year-over-year to $11.0 million<\/strong>. Additionally, this month's AMD-OpenAI strategic partnership<\/span><\/strong> announcement, which commits to deploying<\/span> six gigawatts<\/strong> of AMD AI infrastructure<\/strong> beginning in 2026, directly validates<\/strong><\/span> the semiconductor back-end testing services<\/strong> that Trio-Tech<\/strong> has been quietly<\/span> providing<\/span><\/strong> to AMD<\/strong> for over two decades, potentially setting<\/strong><\/span> the stage<\/strong> for significant revaluation<\/strong><\/span> if the market fully appreciates<\/span> Trio-Tech's hidden leverage<\/span><\/strong> to this massive<\/span> AI deployment cycle<\/strong>.<\/span><\/span><\/p>\n\n

The most striking<\/span> recent development<\/span><\/strong> is the complete reversal<\/span><\/strong> in quarterly earnings momentum<\/span><\/strong> between the two companies, which contradicts<\/span><\/strong> the prevailing<\/span> market narrative<\/strong> about Aehr's growth<\/span> dominance<\/strong>. Aehr's most recent quarter<\/strong> showed concerning<\/span> revenue dynamics<\/strong>, with fiscal 1Q 2026 revenue<\/strong> of $11 million declining by 16.4%<\/span><\/strong> year-over-year from $13.1 million<\/strong> in the comparable prior year period. This represented a miss<\/strong><\/span> against analyst estimates<\/strong> of $11.48 million<\/strong>, despite management's claims of being ahead of street consensus, alongside a GAAP net loss<\/span><\/strong> of ($2.1 million)<\/strong><\/span>. The company's bookings<\/strong> of $11.4 million<\/strong> for the quarter represented a decline<\/strong><\/span> in velocity<\/strong> compared to the prior year's run rate<\/strong>, suggesting that Aehr's<\/strong> much-hyped<\/span> AI processor wins<\/span><\/strong> may not<\/span><\/strong> be translating<\/strong><\/span> into the rapid<\/span> revenue acceleration<\/span><\/strong> that justified its premium<\/span> valuation<\/strong>.<\/span><\/span><\/p>\n\n

In stark contrast, Trio-Tech International (TRT) demonstrated<\/span> positive<\/span> earnings momentum<\/span><\/strong> in its most recent quarter, with fiscal 4Q 2025 revenue<\/strong> of $10.7 million increasing by 10.3%<\/span><\/strong> year-over-year from $9.7 million<\/strong> in the prior year comparable quarter. More significantly, the company achieved<\/span> net income<\/span><\/strong> of $183,000<\/strong><\/span>, demonstrating profitability<\/span><\/strong> compared to Aehr's net losses<\/span><\/strong>. The composition<\/strong> of Trio-Tech's growth<\/span><\/strong> is particularly revealing<\/strong><\/span>: Industrial Electronics segment revenue surged by 70%<\/span><\/strong> year-over-year to $4.1 million<\/strong>, driven by aviation channel expansion<\/span><\/strong>, while Semiconductor Back-End Solutions maintained stability<\/span><\/strong> at $6.6 million<\/strong> despite China weakness<\/span><\/strong>. For the full 2025 fiscal year<\/strong>, Trio-Tech achieved<\/span> profitability<\/span><\/strong> of $630,000<\/strong><\/span> after excluding<\/span><\/strong> a one-time foreign exchange impact<\/strong> of $671,000<\/strong><\/span>, demonstrating operational resilience<\/span><\/strong> that contrasts<\/strong><\/span> sharply with Aehr's trailing twelve-month GAAP net loss<\/span><\/strong> of ($6.65 million)<\/strong><\/span>.<\/span><\/span><\/p>\n\n

The earnings trend<\/strong> becomes even more<\/strong><\/span> compelling<\/strong><\/span> when considering the forward trajectory<\/strong> suggested by each company's guidance<\/strong> and commentary<\/strong>. Aehr withdrew<\/span> formal guidance<\/strong> for fiscal year 2026<\/strong> citing tariff-related uncertainty<\/span><\/strong> and has remained cautious<\/strong><\/span> despite the promised<\/span> AI upside<\/span><\/strong>, suggesting management recognizes<\/span> near-term<\/span> execution risks<\/span><\/strong> that its valuation multiples<\/strong> may not<\/strong><\/span> be fully<\/span> pricing in<\/strong>. Trio-Tech<\/strong>, conversely, expressed <\/strong><\/span>confidence<\/strong><\/span> in its positioning<\/strong>, highlighting a strategic<\/span> inflection point<\/strong> in its evolution. Trio-Tech management emphasized<\/span><\/strong> robust<\/span> 70% revenue growth<\/span><\/strong> in its Industrial Electronics segment<\/strong>, which is emerging<\/strong><\/span> as a new profit center<\/strong><\/span>, and underscored plans to leverage<\/strong><\/span> its expanding<\/span> Southeast Asian footprint<\/strong> as global<\/span> semiconductor supply chains<\/strong> shift toward<\/span> Malaysia<\/strong> and Thailand<\/strong>. With $19.5 million<\/strong><\/span> in cash+deposits<\/strong>, reduced liabilities<\/strong><\/span>, and the pending <\/span>full acquisition<\/span><\/strong> of its Malaysian<\/strong> subsidiary, Trio-Tech conveyed<\/span> confidence<\/span><\/strong> in its capacity to invest<\/strong><\/span> for growth<\/strong><\/span> even amid trade-related volatility<\/strong>. The tone of the release contrasts<\/strong><\/span> sharply with Aehr’s caution<\/span><\/strong>, signaling a management team focused<\/span><\/strong> on operational resilience<\/span><\/strong>, diversification<\/strong><\/span>, and sustainable<\/span> long-term expansion<\/span><\/strong> rather than short-term narrative-driven catalysts<\/span><\/strong>.<\/span><\/span><\/p>\n\n

AMD's newly announced<\/span> multi-year<\/strong>, multi-generation agreement<\/strong> with OpenAI directly validates<\/span><\/strong> the massive growth trajectory<\/strong><\/span> for semiconductor back-end testing<\/strong> and reliability qualification services<\/strong> that Trio-Tech<\/strong> has been positioned<\/strong><\/span> to capture<\/strong><\/span>, yet the market has systematically undervalued<\/strong><\/span> this exposure<\/strong>. The AMD-OpenAI deal represents<\/span><\/strong> an unprecedented<\/span> scale<\/strong> of GPU deployment<\/span><\/strong> for AI infrastructure<\/strong>, with financial projections<\/strong> suggesting tens of billions of dollars<\/strong><\/span> in AMD revenue<\/strong> over the contract period. Critically, Trio-Tech's customer relationship<\/strong> with AMD<\/strong> as a long-standing testing services provider<\/strong> position the company directly<\/strong><\/span> in the supply chain<\/strong> for this massive<\/span> GPU expansion<\/span><\/strong>.<\/span><\/span><\/p>\n\n

While Trio-Tech's more recent SEC filings anonymize<\/span><\/strong> its largest<\/span> customers<\/strong> as "Customer A, B, and C,"<\/strong> contributing<\/strong><\/span> approximately 20%<\/strong>, 17%<\/strong>, and 10%<\/strong> of revenue<\/strong> respectively, historical 10-K filings<\/strong> explicitly identified<\/strong><\/span> AMD<\/strong>, Infineon<\/strong>, and NXP Semiconductors<\/strong> as major<\/span> customers<\/strong>. This pattern<\/strong> of anonymization<\/strong><\/span> is consistent<\/strong><\/span> with companies maintaining<\/span> long-standing supplier relationships<\/strong> where the customer<\/strong> explicitly prefers<\/span> public anonymity<\/span><\/strong>. The inference that "Customer A" represents<\/span> AMD<\/strong> is reasonable<\/strong><\/span> given the timing<\/strong> of anonymization<\/strong><\/span>, the scale<\/strong> of revenue contribution<\/strong> matching<\/span> historical AMD proportions<\/strong>, and the fact<\/strong><\/span> that AMD remains<\/span><\/strong> one of the world's<\/span> largest<\/span> semiconductor manufacturers<\/strong> and is now scaling<\/span> AI GPU production<\/span><\/strong> at unprecedented<\/span> volumes<\/strong>. If the market<\/strong> were to receive<\/span> confirmation<\/span><\/strong> that Trio-Tech represents<\/span><\/strong> a key<\/span> back-end testing partner<\/span><\/strong> for AMD's OpenAI GPU deployment<\/span><\/strong>, the valuation rerating<\/span><\/strong> could be dramatic<\/strong>. Given that AMD's six-gigawatt GPU commitment<\/strong> requires extensive<\/span> testing<\/strong> and qualification<\/strong> at multiple<\/span> stages<\/strong> of manufacturing<\/strong>, and that Trio-Tech's established<\/span> testing services infrastructure<\/span><\/strong> in Singapore<\/strong>, Malaysia<\/strong>, and Thailand<\/strong> positions<\/span><\/strong> it advantageously <\/strong><\/span>for supporting<\/span> AMD's supply chain regionalization initiatives<\/span><\/strong>, the hidden leverage<\/strong><\/span> to AI infrastructure expansion<\/span><\/strong> appears substantial<\/strong><\/span> and largely <\/strong><\/span>unappreciated<\/strong> by the market.<\/span><\/span><\/p>\n\n

Trio-Tech International (TRT)'s EV testing capability<\/strong> directly parallels<\/span> Aehr's market positioning<\/strong> in SiC<\/strong> and GaN<\/strong> testing, which has historically been positioned as a core<\/span> growth driver<\/span><\/strong> for Aehr<\/strong>. The fact<\/strong><\/span> that both<\/span> companies<\/strong> have independently<\/span> recognized<\/span><\/strong> the criticality of SiC<\/strong> and GaN<\/strong> testing for automotive applications validates<\/span><\/strong> the legitimacy<\/strong><\/span> of this market segment<\/strong> and suggests that Trio-Tech's more<\/span> mature<\/strong>, operationally proven<\/span> approach<\/strong> to solving<\/strong><\/span> these testing challenges<\/strong> represents genuine<\/span> competitive positioning<\/strong> rather than aspirational capabilities. The significance <\/strong><\/span>of this convergent product development<\/span><\/strong> becomes apparent when considering that the automotive semiconductor testing market<\/strong> represents another massive<\/span> secular growth driver<\/span><\/strong> alongside AI<\/strong>, with EV production<\/span><\/strong> expected to expand dramatically<\/strong><\/span> over the next five years. Trio-Tech's established<\/span> relationships<\/strong> with major<\/span> automotive semiconductor suppliers<\/strong> like Infineon<\/strong> and NXP<\/strong>, combined with its proven<\/span> manufacturing<\/strong> and testing capabilities<\/strong> in the APAC<\/strong> region, position the company to capture significant<\/span> testing volume<\/strong> as SiC<\/strong> and GaN adoption<\/span> accelerates<\/span><\/strong> across the automotive industry<\/strong>. The fact<\/strong><\/span> that Aehr's stock<\/strong> has appreciated significantly<\/strong><\/span> on SiC<\/strong> and GaN narratives<\/strong>, yet Trio-Tech<\/strong> trades at an enterprise value<\/strong> of less than<\/span> 0.37x<\/span> revenue<\/strong> despite similar<\/span> product positioning<\/strong> and better<\/span> recent earnings momentum<\/span><\/strong>, suggests a once in a decade<\/strong><\/span> valuation arbitrage<\/strong> <\/strong><\/span>opportunity<\/strong><\/span>!<\/span><\/span><\/p>\n\n

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is meant for informational and educational purposes only.<\/span><\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Trio-Tech International (TRT) has hired Aehr Test Systems (AEHR)'s IR firm PondelWilkinson so you will notice the same IR contact in their press releases Todd Kehrli. TRT is finally recognizing their company has an equally important role in the AI\/EV semiconductor supply chain with stronger earnings and growth… yet Trio-Tech International (TRT)'s enterprise value is […]<\/p>\n","protected":false},"author":1,"featured_media":4279,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[194,195,78,8,127],"class_list":["post-4697","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-aehr","tag-amd","tag-nvda","tag-technology","tag-trt"],"_links":{"self":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/4697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/comments?post=4697"}],"version-history":[{"count":4,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/4697\/revisions"}],"predecessor-version":[{"id":4752,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/4697\/revisions\/4752"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media\/4279"}],"wp:attachment":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media?parent=4697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/categories?post=4697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/tags?post=4697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}