AEM share price in scary chapter

October 25, 2025 sgwealthbuilder 168 Views 0 Comments

Lifetime Membership It’s the 3^rdquarter financial reporting season again as we enter the last quarter of 2025. I thought its timely to write an article on AEM share price given that the last update was way back in March 2025. Back then, under the former CEO Amy Leong, the narrative for AEM was all about business recovery and customer diversification. Since then, the narrative for AEM has turned sinister.

First of all, AEM stunned the market when it announced the resignation of former CEO Amy Leong on 27 July 2025. The news was indeed a bombshell for many investors as Amy Leong led AEM for just one year and many investors expected her tenure to last longer given her solid C-suite track record in FormFactor, a major supplier of Intel. Was she forced to resign? In the SGX filing, the reason for her departure was “board-led leadership realignment for growth”, instead of the usual reason such as “pursuing other interest”.

The abrupt resignation of Amy Leong knocked down AEM share price, which plunged from $1.70 in July to $1.40 in August. The halt in the decline of AEM share price was largely due to the release of 1HFY2025 financial result, which saw net profit jumped 284% year-on-year to $3.1 million. Revenue increased 9.6% year-on-year to $190 million. The Group also provided revenue guidance for 2HFY2025 of $170 million to $190 million, broadly in line with 1H2025.

Whilst the 1HFY2025 did manage to break the fall of AEM share price, the counter was still in sluggish form in August period, largely because discerning investors would have noted that AEM actually incurred a loss of $700,000 in the second quarter (the net profit for 1^st quarter was $3.8 million). The loss should be attributed to the foreign exchange loss of $5.89 million.

The market was also lukewarm to the appointment of the President and CTO, Samer Kabbani, as the new CEO. In my view, although Mr Kabbani has solid technical leadership, I am not sure if he could excel in his role as CEO, which requires very different strategic skillsets.

Just when investors begun to write off this counter, AEM share price got an unexpected boost from Intel when the US chipmaker announced Nvidia’s shock decision to invest US$5 billion in Intel shares. Intel also revealed that the US government would also invest US$8.9 billion in Intel shares. The twin deals helped to push Intel shares to a 1-year high of US$37, lifting AEM share price in the process as well.

Riding on the recovery of Intel’ shares, AEM share price hit a high of $2.05 on 3 October 2025. The turnaround of AEM share price caught many investors by surprise due to the depressed form for such a long period of time. However, the counter began to correct to $1.70 due to market’s fear of AI bubble. The fear came on the back of several multi-billion dollar deals on AI, such as that of OpenAI deal with Samsung and SK Hynix, pushing valuations of several tech stocks to sky-high levels.

With the bullish sentiments on AI and a new CEO at the helm, how will AEM fare in 2026? In this article, I will share some insights on the outlook for AEM share price in 2026.

In this blog, I have always maintained that on its day, AEM share price can be unbeatable. Conversely, when the tide goes against AEM share price, the counter can spiral out of control. On this note, this counter is really not for the faint-hearted. Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. I am vested in this counter, so my views on AEM share price may be biased.

Dark clouds loom for AEM share price

On the surface, AEM share price should be riding on the AI boom and Intel’s recovery. However, the company has a knack of shooting itself in the foot. Just when investors thought that its light at the end of the tunnel for AEM share price, investors must be stunned to receive [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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