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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Aehr Test Systems (AEHR - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Aehr Test Systems is one of 613 companies in the Computer and Technology group. The Computer and Technology group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Aehr Test Systems is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for AEHR's full-year earnings has moved 1350% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that AEHR has returned about 327.2% since the start of the calendar year. At the same time, Computer and Technology stocks have gained an average of 17.9%. This means that Aehr Test Systems is performing better than its sector in terms of year-to-date returns.

Another stock in the Computer and Technology sector, Fortinet (FTNT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 96.8%.

For Fortinet, the consensus EPS estimate for the current year has increased 9.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Aehr Test Systems is a member of the Electronics - Measuring Instruments industry, which includes 5 individual companies and currently sits at #30 in the Zacks Industry Rank. This group has gained an average of 60.4% so far this year, so AEHR is performing better in this area.

In contrast, Fortinet falls under the Security industry. Currently, this industry has 9 stocks and is ranked #76. Since the beginning of the year, the industry has moved +71.8%.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Aehr Test Systems and Fortinet as they could maintain their solid performance.

Bank of New York Mellon Corp purchased a new stake in Aehr Test Systems (NASDAQ: AEHR) during the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 93,571 shares of the semiconductor company's stock, valued at approximately $8,988,000. Bank of

Key Takeaways AEHR's AI processor orders and diversification are driving a stronger growth profile.AEHR expects fiscal 2027 revenues of $130 million to $150 million, up 2.6 to 3 times fiscal 2026 levels.COHU is expanding in HPC, HBM inspection, power semiconductors and software analytics. The semiconductor equipment industry is evolving alongside rising chip complexity, advanced packaging requirements and growing demand for specialized testing solutions. These trends are increasing the importance of efficient test and inspection capabilities across the semiconductor manufacturing cycle while also creating varied growth opportunities for equipment providers.

Aehr Test Systems, Inc. (AEHR - Free Report) and Cohu, Inc. (COHU - Free Report) both serve the semiconductor testing market but differ in their product portfolios, customer exposure and growth strategies. AEHR has a more focused presence in wafer-level and burn-in test solutions, while COHU offers a broader range of semiconductor test and handling equipment. Their differing business mixes and strategic priorities provide a useful basis for comparing fundamentals, growth durability and long-term prospects.

Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for AEHRAehr, with a market cap of $2.6 billion, enters fiscal 2027 with a significantly broader revenue base than it had two years ago. Nearly 95% of fiscal 2026 revenues came from markets outside silicon carbide for EVs, with AI accelerators, CPUs and network processors accounting for about 71% of annual revenues. Silicon photonics contributed another 20%, giving the company greater exposure to AI infrastructure and data-center demand.

AI-related wafer-level burn-in remains the key growth engine. Aehr’s lead AI processor customer has doubled its FOX system purchases and is forecasting higher wafer allocations, while another major AI processor supplier completed benchmark testing with results that exceeded expectations and is considering pilot production validation. The latter opportunity could generate revenues from both FOX systems and WaferPak contactors if it advances to production. In August 2026, Aehr received a $22 million follow-on production order from its lead AI processor customer for multiple fully automated FOX-XP wafer-level burn-in systems, FOX WaferPak contactors and Auto Aligners.

Silicon photonics is another growth avenue as AI data centers increasingly rely on optical I/O and high-speed interconnects. Aehr’s lead customer continues to place follow-on orders, while a newer networking customer has already ordered two FOX wafer test cells and two FOX-NP systems and provided a forecast for additional systems as it expands capacity for hyperscale data-center deployments.

The company is also expanding into power semiconductors, with more than a dozen GaN WaferPak designs being sampled by potential customers and its first FOX system sold for a silicon MOSFET wafer-level burn-in application. Aehr is simultaneously working to broaden its opportunity in memory, including NAND and HBM-related applications. It is also developing memory-optimized Blades for its FOX-XP and FOX-NP platforms, with potential orders targeted for fiscal 2027 and production ramps potentially extending into fiscal 2028.

The expanding demand is supported by strong order visibility. Aehr ended fiscal 2026 with a record backlog of $80.6 million, which rose to about $100.6 million following subsequent bookings, providing solid visibility into upcoming shipments. In the fourth quarter of fiscal 2026, its net revenues grew 33.3% year over year. The company expects fiscal 2027 revenues of $130 million to $150 million, representing 2.6 to 3 times fiscal 2026 revenues.

AEHR beat earnings estimates in three of the past four quarters and met once, with an average surprise of 321.9%.

The Case for COHUCohu, with a market cap of $2.3 billion, is benefiting from a recovery in core semiconductor markets alongside increasing demand for equipment tied to AI infrastructure. In the second quarter of 2026, its net sales rose 38.4% year over year to $149 million, while computing represented 46% of system orders and increased 150% year over year. Industrial orders also grew 87%, pointing to broader improvement beyond the high-performance computing market.

Its Eclipse thermal handlers are gaining traction with high-performance computing customers, while the company is also expanding its presence with fabless chipmakers and hyperscalers as their programs move from qualification into production. COHU is broadening its growth opportunities beyond HPC through HBM inspection, power semiconductors and advanced connectivity. The company has shipped inspection systems for HBM3, HBM4 and HBM4E and is pursuing opportunities tied to GaN devices and next-generation connectivity.

COHU is also expanding its focus on software analytics, which could increase the recurring revenue contribution to its business. Its PACE analytics platform is gaining adoption among HPC customers, while the company is developing on-site AI capabilities that allow semiconductor manufacturers to analyze equipment and production data within their own facilities.

Cohu is also increasing manufacturing capacity to accommodate the growing HPC pipeline. Production of HPC handlers in Malaysia is being expanded substantially, with additional capacity planned through 2027. At the same time, the company continues investing in R&D and production resources to pursue design wins across AI data centers, HBM and physical AI applications.

Cohu beat earnings estimates in two of the past four quarters and missed twice.

However, in the second quarter of 2026, management reported that rising HPC demand has lengthened lead times and increased input costs for certain semiconductors and specialty components. The company is securing critical parts where possible, but shortages could still affect delivery schedules, profitability or customer pricing. Automotive system orders also fell 24% year over year, showing that recovery remains uneven across end markets.

How Do Estimates Compare for AEHR & COHU?The consensus mark for AEHR’s fiscal 2027 earnings has jumped by 54 cents to 70 cents per share over the past 60 days. The company reported earnings of 3 cents per share in fiscal 2026.

The Zacks Consensus Estimate for COHU’s 2026 earnings is pegged at 97 cents per share, which increased by 37 cents over the past 30 days.

Price Performance ComparisonIn the year-to-date period, AEHR outperformed COHU and the S&P 500.

Price Performance – AEHR, COHU & S&P 500
Image Source: Zacks Investment Research

Valuation: AEHR vs. COHUComing to the valuation story, it seems that investors are willing to pay a premium for Aehr compared to Cohu. This is reflected in AEHR’s forward 12-month price/sales (P/S) of 16.56X compared with COHU’s 3.24X.

Image Source: Zacks Investment Research

Price TargetAehr currently trades below its average analyst price target of $130, implying an attractive 43.7% potential upside from current levels. Meanwhile, Cohu currently trades below its average analyst price target of $70.88, implying a 37.1% potential upside from current levels.

ConclusionBoth Aehr and Cohu are positioned to benefit from rising semiconductor testing demand, particularly from AI infrastructure and advanced devices. Cohu offers a broader product portfolio and is expanding across HPC, HBM inspection, power semiconductors and software analytics, while Aehr is gaining momentum across AI processors, silicon photonics, power semiconductors and memory applications.

However, AEHR appears to have the stronger growth profile at present, supported by rapid business diversification, a record backlog, growing AI-related orders and an ambitious fiscal 2027 revenue outlook. Despite trading at a significantly higher valuation than COHU, its stronger growth visibility and expanding opportunities across multiple high-growth semiconductor markets make AEHR the better buy now. AEHR currently carries a Zacks Rank #2 (Buy), while COHU has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FREMONT, CA / ACCESS Newswire / August 21, 2026 / Aehr Test Systems (NASDAQ:AEHR), a leading provider of test and burn-in solutions for semiconductor devices used in artificial intelligence (AI), silicon photonics, data center, automotive, and industrial applications, today announced that it will participate in the Jefferies semiconductor, IT Hardware & Communications Technology Conference taking place August 24-25, 2026, at the Four Seasons Hotel in Chicago. President and CEO Gayn Erickson and CFO Chris Siu will be hosting meetings with investors throughout the day on Tuesday, August 25.

"We look forward to discussing with investors and shareholders Aehr's expanding role in enabling the next generation of semiconductor devices across a wide range of markets," said Mr. Erickson. "Aehr delivers complete turnkey solutions that improve the quality, reliability, and yield of semiconductors used in critical applications, including AI processors in cloud computing and data centers, silicon carbide devices in electric vehicles and charging infrastructure, gallium nitride for advanced power conversion, and silicon photonics for data centers, 5G infrastructure and optical input/output (I/O). We are seeing strong traction with AI processors in both wafer-level and package-level formats. The growing adoption of wafer-level and package-level test and burn-in across these markets is expected to be a significant growth driver for Aehr Test Systems."

For additional information or to schedule a meeting with Aehr management, please contact your Jefferies representative or Aehr's investor relations firm, PondelWilkinson, Inc., at [email protected].

About Aehr Test Systems

Headquartered in Fremont, California, Aehr Test Systems is a leading provider of test solutions for testing, burning-in, and stabilizing semiconductor devices in wafer-level, singulated die, and package-level form, and has installed thousands of systems worldwide. Increasing quality, reliability, safety, and security needs of semiconductors used across multiple applications, including electric vehicles, electric vehicle charging infrastructure, solar and wind power, computing, advanced artificial intelligence (AI) processors, data and telecommunications infrastructure, and solid-state memory and storage, are driving additional test requirements, incremental capacity needs, and new opportunities for Aehr's products and solutions. Aehr has developed and introduced several innovative products including the FOX-PTM families of test and burn-in systems and FOX WaferPakTM Aligner, FOX WaferPak Contactor, FOX DiePak® Carrier and FOX DiePak Loader. The FOX-XP and FOX-NP systems are full-wafer contact and singulated die/module test and burn-in systems that can test, burn-in, and stabilize a wide range of devices such as leading-edge silicon carbide-based and other power semiconductors, 2D and 3D sensors used in mobile phones, tablets, and other computing devices, memory semiconductors, processors, microcontrollers, systems-on-a-chip, and photonics and integrated optical devices. The FOX-CP system is a low-cost single-wafer compact test solution for logic, memory and photonic devices and the newest addition to the FOX-P product family. The FOX WaferPak Contactor contains a unique full-wafer contactor capable of testing wafers up to 300mm that enables IC manufacturers to perform test, burn-in, and stabilization of full wafers on the FOX-P systems. The FOX DiePak Carrier allows testing, burning in, and stabilization of singulated bare die and modules up to 1024 devices in parallel per DiePak on the FOX-NP and FOX-XP systems up to nine DiePaks at a time. Acquired through its acquisition of Incal Technology, Inc., Aehr's new line of high-power package-level reliability/burn-in test solutions for AI semiconductor manufacturers, including its ultra-high-power Sonoma family of test solutions for AI accelerators, GPUs, and high-performance computing (HPC) processors, position Aehr within the rapidly growing AI market as a turnkey provider of reliability and testing that span from engineering to high volume production. For more information, please visit Aehr Test Systems' website at www.aehr.com.

SOURCE: Aehr Test Systems

Shares of semiconductor test equipment names are sliding Wednesday morning as a broad derisking wave hits some of 2026’s biggest chip winners. Aehr Test Systems (NASDAQ:AEHR) stock is down 10% to $111.01, leading the group lower after one of the largest year-to-date runs anywhere in the sector.

Teradyne (NASDAQ:TER | TER Price Prediction) stock is down 5% to $383.80. FormFactor (NASDAQ:FORM) shares are down 6% to $117.27. Cohu (NASDAQ:COHU) stock is down 6% to $55.73. The SPDR S&P Semiconductor ETF (NYSEARCA:XSD) is down 2% to $508.08, a much smaller decline that shows how concentrated the selling is in the test names.

No company-specific catalyst has been reported for any of the four test-equipment stocks today. The move reads as sector-wide profit-taking after enormous year-to-date gains, and the pullback comes despite relief in the bond market. The Treasury Department said it would increase buybacks of long-dated government debt “by at least double” for securities in the 10-year to 30-year sector, and the 30-year yield declined 8 basis points to 5.2% after hitting its highest level since 2007 earlier this week.

Aehr Test Systems Leads the Test-Name Selloff Aehr Test Systems stock had entered Wednesday up 510% year to date through Tuesday’s close, easily the largest run in this peer group. That vertical move sets up an outsized reaction on any AI-hardware derisking day, and today the shares are giving back a chunk of that gain.

The company designs wafer-level burn-in and test systems, including the FOX-P family, along with ultra-high-power packaged part burn-in systems in the Sonoma family, serving AI accelerators, GPUs, high-performance computing processors, and silicon carbide power semiconductors. Aehr Test Systems reported trailing twelve-month revenue of $50.9 million and a trailing twelve-month net loss of $7.1 million, with fiscal fourth quarter revenue of $18.8 million for the quarter ended May 29, up from $14.1 million a year earlier.

Separately, Aehr Test Systems disclosed in a Form 4 filing with the SEC that President and Chief Executive Officer Gayn Erickson sold 40,000 shares of common stock on August 12, valued at $5.2 million, at a weighted average price of $130.84. The sale was executed entirely through indirect holdings held by a trust, reducing that specific interest by 20%. Erickson retains 197,521 directly held shares and 157,723 indirectly held shares, and executive sales conducted through trusts are routine and commonly reflect diversification or pre-set plans.

Peer Test-Equipment Names Follow the Move Teradyne stock is the second-largest name in this group by year-to-date performance, up 109% year to date through Tuesday’s close before Wednesday’s 5% decline. Teradyne supplies automatic test equipment used in the production of AI accelerators, memory, and networking silicon, and is one of the most direct large-cap plays on rising test intensity per die.

Meanwhile, FormFactor shares are down 6% after a 123% year-to-date run through Tuesday’s close. FormFactor makes advanced probe cards used in wafer testing for high-bandwidth memory and logic devices, a niche tightly correlated with AI accelerator and memory build-outs.

Additionally, Cohu stock is falling 6% after a 139% year-to-date gain. Cohu supplies test handlers and contactors for high-performance computing and data-center processors, giving it the same AI-hardware exposure that is now being trimmed across the group.

SPDR S&P Semiconductor ETF Softens Less The SPDR S&P Semiconductor ETF is down 2% to $508.08, well shy of the drawdowns in the individual test names. The fund is up 61% year to date through Tuesday’s close and offers broad semiconductor exposure rather than a targeted test-equipment vehicle.

Top XSD holdings include Marvell Technology, Power Integrations, Cirrus Logic, On Semiconductor, and Impinj, meaning the ETF blends analog, connectivity, memory, and logic names alongside a smaller slice of test exposure. That broader mix explains why its decline is a fraction of what Aehr Test Systems, Teradyne, FormFactor, and Cohu are printing today.

The sector concentration is still worth flagging. The XSD fund sits inside a single industry, so drawdowns can compound if the broader chip complex rolls over rather than staying isolated in the test cohort.

What to Watch The setup points to positioning and profit-taking in AI hardware winners rather than a rates problem, given long-end yields eased on the day. Traders can watch for signs of support in the test names into the close, or further downside as momentum unwinds.

Shareholders may want to keep an eye on whether the SPDR S&P Semiconductor ETF joins the selling in earnest or holds firm, which can help clarify whether this is a targeted rotation out of test equipment or the front edge of a broader chip pullback.

Contact [email protected] for any questions or corrections.

Key Takeaways Softer inflation and jobs data boosted hopes for a Fed rate-hike pause. NVIDIA's $500B AI push could create fresh opportunities across financials. Leveraged ETFs magnified gains in Nebius, SanDisk, Aehr and Unusual Machines. Wall Street delivered a mixed performance last week. The S&P 500 added about 0.5%, the Dow Jones Industrial Average lost about 0.6%, and the Nasdaq-100 surged about 1.1% as growth stocks rallied on hopes that the Fed will keep interest rates unchanged at its September meeting, easing earlier concerns about a potential rate hike.

Cooling Inflation Cools Fed Rate-Hike BetsExpectations for another Federal Reserve rate hike have cooled following the latest inflation data. The annual inflation rate in the United States slowed for a second successive month to 3.4% in July 2026, from 3.5% in June, in line with expectations.

The impact of the energy shock caused by the war with Iran continued to ease. On a monthly basis, the CPI rose 0.1% as expected, rebounding from a 0.4% decline in June.

Core CPI, which excludes volatile food and energy prices, rose 0.2% sequentially (following a flat reading in June) and 2.5% year over year, down from 2.6% in June, per Trading Economics (read: 5 ETFs to Benefit From Cooling Inflation in the Near Term).

The chances of the Fed keeping interest rates unchanged at its September meeting have now risen to 66.9%, up from 51.5% a month ago, per CME FedWatchTool (at the time of writing).

The benign inflation report came shortly after July's disappointing jobs data, which showed an unexpected loss of 23,000 nonfarm jobs. The combination of softer inflation and a weakening labor market has reduced the urgency for the Fed to raise interest rates at its September meeting.

NVIDIA's $500B AI PushNVIDIA (NVDA - Free Report) announced last week that it had entered into memorandums of understanding with Apollo Global Management (APO), BlackRock (BLK), Blackstone (BX), Brookfield (BAM), Goldman Sachs (GS) and KKR (KKR) to establish financing platforms aimed at supporting its customers, as quoted on CNBC (read: Does NVIDIA's $500B AI Push Open a New Opportunity for Financial ETFs?).

Winning Leveraged ETFs in Focus Against this backdrop, below we highlight a few winning leveraged ETFs of last week.

Graniteshares 2X Long NBIS Daily ETF (NBIL - Free Report) – Up 107.3%

Nebius Group (NBIS - Free Report) – an AI-centric cloud platform built for intensive AI workloads – saw its shares surge about 50% last week. 

Leverage Shares 2X Long SNDK Daily ETF (SNDG - Free Report) – Up 80.3%

SanDisk (SNDK - Free Report) ’ shares – developer and seller of data storage devices and solutions based on NAND flash technology – added 36.3% last week.  

Leverage Shares 2X Long AEHR Daily ETF (AEHG - Free Report) – Up 56.9%

Aehr Test Systems (AEHR - Free Report) – developer of systems which are designed to reduce the cost of testing DRAMs and other memory devices – saw its shares surge 27.7% last week.

Defiance Daily Target 2X Long UMAC ETF (UMAL - Free Report) – Up 48.6%

Shares of Unusual Machines (UMAC - Free Report) a manufacturer of U.S.-made, NDAA-compliant drone components and small unmanned aircraft systems, added about 28.1% last week.

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Shares of Aehr Test Systems (NASDAQ:AEHR) are up roughly 8% in Friday midday, after a fresh Wall Street initiation lit another fire under one of 2026’s most explosive small caps. The move extends a year-to-date advance of 510.7% and pushes the stock through its 52-week high of $133.35.

Jefferies Buy Rating and $175 Target Fuel the Move Jefferies initiated coverage of Aehr today with a Buy rating and a $175 price target, and importantly, the firm called its own model conservative. “We see credible upside to our estimates, built only on programs already in production and backlog booked. Our model excludes memory, CPO, conversion of the AI benchmark customer, and a return to peak SiC,” Jefferies wrote. In plain English, the target does not require a silicon carbide recovery, a memory win, or the huge AI benchmark customer converting to production. Those are all free options.

The analyst also laid out the structural case: “We see AI/AP/SiPho as a significant LT catalyst, as rising chip value, higher power envelopes, chiplet/HBM integration, and compounding package-yield risk all increase reliability-test intensity.” Translation for a non-specialist reader. AI accelerators run hotter, cost more, and stack more dies into a single package. That makes it far more expensive to discover a bad chip late, so buyers want to screen at the wafer level before packaging. That’s exactly what Aehr’s FOX family of wafer-level burn-in systems and its Sonoma ultra-high-power packaged-part burn-in platform do.

Jefferies also flagged the mix shift as the real story: “AEHR has undergone one of the semi equipment sector’s most significant mix transformations, with SiC more than 90% of FY24 revenue and now AI over 90% of FY26 revenue. Additionally, the top customer has fallen from 79% of revenue in FY23 to an estimated over 25% in FY27E.” Customer concentration risk, long a bear pillar, is fading.

Test Equipment Peers Have Re-Rated, Too Aehr is the standout, but the entire semiconductor test and inspection group has been one of 2026’s strongest pockets of the market. Teradyne (NASDAQ:TER | TER Price Prediction) is up 112% year to date and 261% over one year. Cohu (NASDAQ:COHU) has gained 151% YTD, FormFactor (NASDAQ:FORM) is up 136% YTD, and Onto Innovation (NYSE:ONTO) has advanced 114% YTD. Axcelis Technologies is the laggard of the group at 78% YTD.

The read-through is straightforward. AI chips are harder and more expensive to test than what came before, and every name that touches burn-in, probe, handlers, or wafer inspection is capturing that spend. Aehr’s gain still dwarfs the group, which cuts both ways: more upside already booked into the tape, but far more valuation risk if AI test intensity underdelivers.

Watch the Risk Behind the Rally This is still a small cap with a market value around $4.35 billion, lumpy order-driven revenue (Q3 FY26 revenue was $10.31 million, down 43.7% YoY), and a beta of 3.09. Insiders have been steady sellers into the rally, including the CEO and CFO through July, per Form 4 filings. A stock up more than 500% year to date carries extreme valuation risk on any AI test-demand hiccup.

Keep an eye on the stock into the close to see if AEHR can hold this breakout above its prior 52-week high. The next catalyst is management’s fiscal 2027 order flow commentary, where the CEO has already guided to revenue of $130 million to $150 million.

Contact [email protected] for any questions or corrections.

California State Teachers Retirement System grew its stake in Aehr Test Systems (NASDAQ: AEHR) by 2,271.7% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 41,599 shares of the semiconductor company's stock after acquiring an additional 39,845 shares during the period. California State Teachers Retirement

Key Takeaways Aehr won a $22M follow-on order for WLBI systems from its lead AI processor customer.The FOX-XP can test and burn in nine 300mm wafers at once, screening reliability before packaging.Aehr reported a $100.6M backlog and $60.7M record quarterly bookings at fiscal 2026's end. Aehr Test Systems, Inc. (AEHR - Free Report) has secured a $22 million follow-on production order from its lead AI processor customer, signaling growing adoption of wafer-level burn-in (WLBI) as AI chips become more complex and costly. The systems are expected to ship over the next six months to the customer’s high-volume manufacturing partner in Taiwan, supporting production of advanced AI training and inference processors.

The order includes multiple FOX-XP systems, FOX WaferPak contactors and Auto Aligners. Each FOX-XP can simultaneously test and burn in nine 300mm wafers, enabling manufacturers to identify early-life reliability issues before chips are packaged. This can help reduce the risk of committing expensive HBM, substrates and interposers to dies that may later fail reliability screening, making WLBI increasingly relevant as AI package complexity rises.

The latest win builds on AEHR’s momentum. In February, the company received a $14 million order from the same lead AI processor customer. It reported a $100.6 million effective backlog at the end of fiscal 2026, while fiscal 2027 revenue guidance of $130-$150 million points to substantial year-over-year growth. Record quarterly bookings of $60.7 million at the fiscal fourth-quarter end also indicate strong demand for its test and burn-in solutions across multiple applications.

Additionally, the company is engaging with additional semiconductor companies and hyperscalers following positive WLBI benchmark results, while targeting applications spanning AI accelerators, CPUs, network processors, memory and HBM. As chip values, power requirements and advanced packaging complexity increase, broader adoption of WLBI could create a meaningful growth avenue for Aehr.

AEHR Faces Stiff CompetitionAehr operates in a highly competitive semiconductor test equipment market, contending with strong rivals such as Teradyne, Inc. (TER - Free Report) and FormFactor, Inc. (FORM - Free Report) .

Teradyne is benefiting from robust AI-related semiconductor testing demand, with its semiconductor test business gaining from higher testing requirements for advanced chips. Strong orders from AI and high-performance computing applications position TER well as chip complexity and testing intensity continue to rise.

FormFactor is benefiting from rising AI and HBM test requirements, with demand for advanced probe cards supported by increasingly complex processors and packaging. FORM’s wafer-level testing capabilities position the company well as semiconductor manufacturers increase testing intensity to improve yield and reliability.

AEHR’s Share Price Performance, Valuation & EstimatesAEHR’s shares have surged 79.5% over the past month, outperforming the broader industry’s 7.9% growth.

Image Source: Zacks Investment Research

Aehr shares are trading at a premium. In terms of the forward 12-month price-to-sales (P/S), AEHR is trading at 27.11X, higher than the industry’s 6.31X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AEHR’s fiscal 2027 earnings is projected at 70 cents per share, a sharp increase from 3 cents a year ago.

Image Source: Zacks Investment Research

Aehr currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FREMONT, CA / ACCESS Newswire / August 13, 2026 / Aehr Test Systems (NASDAQ:AEHR), a leading provider of test and burn-in solutions for semiconductor devices used in artificial intelligence (AI), silicon photonics, data center, automotive, and industrial applications, today announced that it will participate in the 7th Annual Needham Virtual Semiconductor and SemiCap 1x1 Conference on Wednesday, August 19, 2026. Aehr Test President and CEO Gayn Erickson and CFO Chris Siu will be hosting virtual meetings with investors throughout the day.

"We look forward to discussing with investors and shareholders Aehr's expanding role in enabling the next generation of semiconductor devices across a wide range of markets," said Mr. Erickson. "Aehr delivers complete turnkey solutions that improve the quality, reliability, and yield of semiconductors used in critical applications, including AI processors in cloud computing and data centers, silicon photonics for data centers, 5G infrastructure and optical input/output (I/O), silicon carbide devices in electric vehicles and charging infrastructure, and gallium nitride for advanced power conversion. We are seeing strong traction with AI processors in both wafer-level and package-level formats. The growing adoption of wafer-level and package-level test and burn-in across these markets is expected to be a significant growth driver for Aehr Test Systems."

For additional information, or to schedule a meeting with Aehr management, please contact your Needham representative, or Aehr's investor relations firm, PondelWilkinson, Inc., at [email protected].

About Aehr Test Systems

Headquartered in Fremont, California, Aehr Test Systems is a leading provider of test solutions for testing, burning-in, and stabilizing semiconductor devices in wafer-level, singulated die, and package-level form, and has installed thousands of systems worldwide. Increasing quality, reliability, safety, and security needs of semiconductors used across multiple applications, including advanced artificial intelligence (AI) processors, silicon photonics, data and telecommunications infrastructure, electric vehicles, electric vehicle charging infrastructure, solar and wind power, computing, and solid-state memory and storage are driving additional test requirements, incremental capacity needs, and new opportunities for Aehr's products and solutions. Aehr has developed and introduced several innovative products including the FOX-PTM families of test and burn-in systems and FOX WaferPakTM Aligner, FOX WaferPak Contactor, FOX DiePak® Carrier and FOX DiePak Loader. The FOX-XP and FOX-NP systems are full-wafer contact and singulated die/module test and burn-in systems that can test, burn-in, and stabilize a wide range of devices such as leading-edge silicon carbide-based and other power semiconductors, 2D and 3D sensors used in mobile phones, tablets, and other computing devices, memory semiconductors, processors, microcontrollers, systems-on-a-chip, and photonics and integrated optical devices. The FOX-CP system is a low-cost single-wafer compact test solution for logic, memory and photonic devices and the newest addition to the FOX-P product family. The FOX WaferPak Contactor contains a unique full-wafer contactor capable of testing wafers up to 300mm that enables IC manufacturers to perform test, burn-in, and stabilization of full wafers on the FOX-P systems. The FOX DiePak Carrier allows testing, burning in, and stabilization of singulated bare die and modules up to 1024 devices in parallel per DiePak on the FOX-NP and FOX-XP systems up to nine DiePaks at a time. Acquired through its acquisition of Incal Technology, Inc., Aehr's new line of high-power package-level reliability/burn-in test solutions for AI semiconductor manufacturers, including its ultra-high-power Sonoma family of test solutions for AI accelerators, GPUs, and high-performance computing (HPC) processors, position Aehr within the rapidly growing AI market as a turnkey provider of reliability and testing that span from engineering to high volume production. For more information, please visit Aehr Test Systems' website at www.aehr.com.

Contacts:
Aehr Test Systems
Chris Siu
Chief Financial Officer
[email protected]

PondelWilkinson, Inc.
Todd Kehrli or Jim Byers
Analyst/Investor Contact
[email protected]
[email protected]

SOURCE: Aehr Test Systems

Key Takeaways Aehr Test Systems enters fiscal 2027 with record bookings and an effective backlog near $100.6M.AI processors, silicon photonics and power devices are driving demand for AEHR's test systems.AEHR trades at 24.62X forward sales, well above its industry average of 6.32X. Over the past month, Aehr Test Systems, Inc. (AEHR - Free Report) has surged 72.2%, easily beating the broader industry, which has gained 7.4%. The S&P 500 has risen 2.9% over the same period. Among comparable stocks, Teradyne, Inc. (TER - Free Report) has advanced 11.3%, while Cohu, Inc. (COHU - Free Report) has been flat.

The rally reflects a change in how investors view AEHR’s growth prospects. Record fourth-quarter fiscal 2026 bookings of $60.7 million and an effective backlog of about $100.6 million gave the market greater confidence in demand. The company expects significant fiscal 2027 revenue growth, supported by rising demand for semiconductor test and burn-in systems used in AI processors, silicon photonics and power devices.

AEHR One-Month Price Performance Comparison Image Source: Zacks Investment Research

The expanding order pipeline is also improving revenue visibility, as AEHR moves several customer programs toward production. Together, the strong order momentum, substantial backlog and exposure to fast-growing AI and data-center applications are driving the stock higher.

Estimates for AEHR Signal Continued GrowthFor fiscal 2027, the Zacks Consensus Estimate for Aehr Test Systems’ EPS is projected at 70 cents, a sharp increase from 3 cents a year ago. For fiscal 2028, the estimate is pegged at $1.54, indicating another 120% increase. Moreover, analysts project fiscal 2027 revenues of $140.20 million, up 180.4%, followed by $215.65 million in fiscal 2028, implying another 53.8% increase.

AEHR has topped earnings estimates in three of the past four quarters and met once, delivering an average earnings surprise of 321.9%.

AI Leads a Broadening Growth StoryAEHR is currently benefiting from several overlapping growth drivers, with AI-related semiconductor testing emerging as the most important. Its lead hyperscale customer is ramping AI processors and increasing its need for the company’s wafer-level and package-level burn-in systems. Management expects this customer’s system purchases and WaferPak requirements to increase significantly over the next several years.

Silicon photonics is becoming a major new opportunity as AI data centers increasingly use optical I/O and high-speed interconnects. Aehr already has a lead silicon-photonics customer ramping production and a newer major networking customer forecasting additional systems for hyperscale deployments. In early August, the company received a follow-on production order from its lead silicon photonics customer for a fully automated FOX-XP multi-wafer burn-in system, scheduled to ship in the first half of 2027.

Recovery in silicon carbide, particularly for EVs, is another growth avenue, which provides diversification benefits. Aehr received more than $8 million of SiC orders in the month before its July results, including orders connected to automotive programs. Management also expects renewed GaN and SiC demand from AI data-center power infrastructure.

Aehr is pursuing wafer-level burn-in opportunities in memory, including NAND flash and potential high-bandwidth memory (HBM) applications. The company is working with multiple memory suppliers as they prepare additional capacity.

Cash Gives AEHR Room to GrowAEHR's balance sheet provides a solid financial cushion, with cash and cash equivalents rising to $116.4 million as of May 29, 2026. The sizable cash position, bolstered by a public equity offering, should give the company flexibility to support capacity expansion and working-capital needs as it prepares for rapid growth in fiscal 2027.

Growth Comes at a Steep PriceThe market is already assigning AEHR a premium for its growth potential. The stock currently trades at 24.62X forward sales, above the industry average of 6.32X and its three-year median multiple of 6.05X. That premium leaves less room for disappointment.

For comparison, Teradyne trades at 10.50X forward sales, while Cohu trades at 3.61X.

Image Source: Zacks Investment Research

Risks Investors Should WatchAEHR’s biggest challenge is turning its opportunity into consistent financial results. The company depends on a relatively small group of large customers, with its lead hyperscale AI customer playing an especially important role. Delays in production ramps or changes in customer spending could make results volatile.

AEHR's business remains exposed to the capital-spending cycles of semiconductor manufacturers. Even though AI is creating strong demand, spending can be lumpy, and customer orders can shift between quarters.

Execution against elevated expectations remains a key risk. AEHR has an impressive backlog and significant AI opportunities, but the stock’s sharp run-up has raised the bar for future results. Investors will now want to see that the backlog translates into sustained revenue and earnings growth while AEHR simultaneously ramps manufacturing capacity.

Our Call: Buy AEHR Stock NowAehr Test Systems is entering fiscal 2027 with strong momentum, supported by record bookings, a sizable backlog and growing demand from AI, silicon photonics and power semiconductor markets. The sharp rise in earnings and revenue estimates further strengthens the growth case.

However, AEHR’s premium valuation and reliance on a limited number of large customers leave little room for execution missteps. Investors will be watching how quickly the company converts its backlog into revenues while expanding capacity to meet demand. Despite these risks, the strong growth outlook and favorable estimate trends support a Zacks Rank #1 (Strong Buy) for AEHR, reflecting an attractive near-term setup. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alistair N. Sporck, Vice President of the Contactor Business Unit at Aehr Test Systems, Inc. (AEHR +10.34%), sold 1,000 shares of common stock on August 10, 2026, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$108,490Shares sold (directly held)1,000Post-transaction shares (directly held)22,547Post-transaction shares (indirectly held)5,177Post-transaction value~$2.9 millionTransaction value based on SEC Form 4 weighted average sale price ($108.49); post-transaction value based on August 10, 2026 market close ($106.20).

Key questionsHow does this sale align with the insider's total equity exposure?
The transaction was a modest liquidity event, as Alistair N. Sporck retains 97% of their total equity stake, including both direct ownership and shares held via trust.Are there specific conditions attached to the remaining shares?
Direct holdings reported in this filing include shares subject to unvested restricted stock units, ensuring continued long-term alignment with the company's performance.How does the transaction price compare to recent market levels?
The execution at $108.49 per share occurred at a slight premium to the $106.20 market close on the day of the transaction.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$106.20Market Capitalization$3.5 billionRevenue (TTM)$50.9 millionNet Income (TTM)-$7.1 millionCompany SnapshotAehr Test Systems designs and manufactures advanced burn-in and test systems for integrated circuits, including logic, optical, and memory devices, with principal product families comprising the ABTS and FOX-P systems alongside specialized components such as the FOX WaferPak Aligner and FOX DiePak Carrier.The company generates revenue through the sale of proprietary test and burn-in equipment to semiconductor manufacturers and foundries, supplemented by recurring revenue from service, maintenance, and consumable components associated with its installed equipment base.Aehr Test Systems serves global semiconductor manufacturers, foundries, and integrated device manufacturers requiring advanced thermal and electrical testing solutions for high-reliability integrated circuit validation and production.Aehr Test Systems, founded in 1977 and headquartered in Fremont, California, is a specialized provider of mission-critical test and burn-in systems serving the global semiconductor industry. The company maintains a focused operational footprint with 138 employees while generating $50.9 million in trailing twelve-month revenue, reflecting its position as a niche supplier of high-value equipment to semiconductor manufacturers.

With a market cap of $3.5 billion and significant recent appreciation, Aehr Test Systems represents a capital-efficient business model dependent on technological differentiation and customer concentration within the semiconductor equipment sector.

What this transaction means for investorsVP Alistair Sporck’s Aug. 10 sale of Aehr Test Systems stock occurred after shares attained a 484% one-year total return. It appears Sporck was capitalizing on the price increase to capture gains.

That said, the disposition only comprised a modest 3% of Sporck’s total equity position. Post-transaction holdings of over 27,000 suggest the insider maintains continued alignment with shareholder interests.

Aehr Test Systems is up thanks to an outstanding earnings report for its fiscal fourth quarter ended May 29. Revenue rose to $18.8 million, up from $14.1 million in the prior year. This demonstrates the growing customer demand the company is seeing for its semiconductor testing capabilities as a result of the rapidly expanding artificial intelligence sector.

Its growing revenue enabled the company to achieve fiscal Q4 net income of $1.4 million, an impressive reversal from the prior year’s net loss of $2.9 million. For its 2027 fiscal year, Aehr forecasted approximately 160% to 200% year-over-year sales growth. The astounding increase in net income and the next fiscal year’s revenue also contributed to the stock’s rise.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Howard T. Slayen, a member of the Board of Directors at Aehr Test Systems, Inc. (AEHR -6.97%), sold 20,000 shares of common stock on August 4, 2026, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$2.2 millionShares sold20,000Post-transaction shares (directly held)146,367Post-transaction value$16.08 millionTransaction value based on SEC Form 4 weighted average sale price ($108.30); post-transaction value based on August 4, 2026 market close ($109.89).

Key questionsHow did this transaction affect the director's total equity exposure?
The sale of 20,000 shares reduced Howard Slayen's direct equity interest by 12%, leaving a remaining direct position of ~146,000 shares.At what valuation was the equity disposed of relative to the trade-date close?
The shares were sold at a weighted average price of $108.30 per share, while the stock was priced at $109.89 at the August 4, 2026 market close.Are there specific conditions attached to the remaining shares?
The director's remaining direct holdings include shares subject to unvested restricted stock units (RSUs), which ensures a portion of his equity compensation remains subject to future vesting requirements.Company OverviewMetricValueShare Price (as of market close 2026-08-04)$109.89Market Capitalization$3.6 billionRevenue (TTM)$50.9 millionNet Income (TTM)($7.1 million)Company SnapshotAehr Test Systems designs and manufactures advanced burn-in and test systems for integrated circuits, including logic, optical, and memory devices, with a comprehensive product portfolio featuring the ABTS and FOX-P families of solutions.The company generates revenue through the sale of specialized semiconductor test and burn-in equipment, along with complementary components such as WaferPak aligners, contactors, and carriers that support its core testing platforms.Aehr serves semiconductor manufacturers and integrated device manufacturers globally who require advanced testing and burn-in capabilities to validate the reliability and performance of their integrated circuit products.Aehr Test Systems, founded in 1977 and headquartered in Fremont, California, is a specialized provider of advanced burn-in and test solutions for the semiconductor industry. With a market cap of $3.6 billion, the company has demonstrated significant market momentum, with a one-year share price appreciation of 477.46%.

The company's focused product portfolio and specialized expertise in semiconductor testing position it as a critical supplier to manufacturers requiring advanced validation and reliability assessment capabilities for integrated circuits.

What this transaction means for investorsDirector Howard Slayen is yet another Aehr Test Systems insider selling after the stock ran up nearly 500% in the past 12 months. His August 4 disposition was a discretionary transaction, which makes sense given the significant share price increase.

The sale reduced holdings by a substantial 12%. That said, Slayen retained over 146,000 shares post-transaction, some of which are unvested RSUs, limiting his ability to dispose of more stock until they vest. This helps to ensure his continued alignment with shareholder interests.

Aehr Test Systems stock rose thanks to a strong earnings report for its fiscal fourth quarter ended May 29. Revenue reached $18.8 million, up from $14.1 million in the prior year.

In addition, the company announced record fiscal Q4 bookings of $60.7 million, and forecasted sales between $130 million and $150 million in its 2027 fiscal year. That’s a massive increase from the $50 million made in fiscal 2026, and sign customer demand is accelerating amid growth in the artificial intelligence sector.

Slayen is a long-time Board member, having served with Aehr Test Systems since 2008.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Microsoft: Steady Revenue ExpansionMicrosoft (MSFT +1.06%) primarily generates revenue by licensing software applications, providing cloud computing services, and selling computing and gaming hardware to diverse global enterprise and consumer customers.

It recently formed a strategic partnership with Databricks to integrate business contexts into enterprise models and reported a 40% net income margin for the quarter ended June 30, 2026. The company simultaneously navigated multiple class action lawsuits regarding historical performance disclosures.

Aehr Test Systems: Navigating Extreme Revenue FluctuationsAehr Test Systems (AEHR +19.82%) primarily generates revenue by designing and providing advanced burn-in and testing systems that help global manufacturers verify the reliability of complex integrated circuits.

While experiencing no major adverse events, it recently secured follow-on orders for its fully automated wafer-level burn-in systems and reported a 41% gross margin for the quarter ended May 29, 2026.

Why Revenue Matters for Retail InvestorsRevenue serves as a crucial baseline metric for investors to track business volume and customer demand over time. This metric helps investors measure a company’s overall size, market footprint, and long-term trajectory.

Quarterly Revenue for Microsoft and Aehr Test SystemsQuarter (Period End)Microsoft RevenueAehr Test Systems RevenueQ3 2024$65.6 billion (period ended Sept. 2024)$13.1 million (period ended Aug. 2024)Q4 2024$69.6 billion (period ended Dec. 2024)$13.5 million (period ended Nov. 2024)Q1 2025$70.1 billion (period ended March 2025)$18.3 million (period ended Feb. 2025)Q2 2025$76.4 billion (period ended June 2025)$14.1 million (period ended May 2025)Q3 2025$77.7 billion (period ended Sept. 2025)$11.0 million (period ended Aug. 2025)Q4 2025$81.3 billion (period ended Dec. 2025)$9.9 million (period ended Nov. 2025)Q1 2026$82.9 billion (period ended March 2026)$10.3 million (period ended Feb. 2026)Q2 2026$90.0 billion (period ended June 2026)$18.8 million (period ended May 2026)Data source: Company filings. Data as of July 31, 2026.

Foolish TakeComparing revenue trends between Microsoft and Aehr Test Systems provides revealing insights. The former’s consistent quarter-over-quarter sales growth is a testament to the strength of its offerings as it successfully captures AI customer demand.

Aehr Test Systems experienced volatile swings in sales over the past several quarters, as its role in testing for the semiconductor industry does not lend itself to the kind of consistent revenue growth seen with Microsoft. However, its most recent quarter’s revenue of $18.8 million, along with record bookings of $60.7 million, indicate customer demand is heating up as the artificial intelligence sector continues to expand. Consequently, Aehr Test Systems stock edged past $100, up over 400% in 2026 through August 4.

Microsoft shares hit a 52-week low of $349.20 in June, as its spending on AI infrastructure spooked Wall Street. Shares rebounded after the company posted earnings results for its fiscal fourth quarter ended June 30. Despite the spending on AI, Microsoft delivered diluted earnings per share of $4.81, a substantial increase from $3.65 in the previous year. This demonstrates the tech titan can invest in infrastructure and continue to grow profits.

FREMONT, CA / ACCESS Newswire / August 4, 2026 / Aehr Test Systems (NASDAQ:AEHR), a leading provider of test and burn-in solutions for semiconductor devices used in artificial intelligence (AI), silicon photonics, data center, automotive, and industrial applications, today announced it has received a follow-on production order from its lead silicon photonics wafer-level burn-in (WLBI) customer for a fully automated FOX-XP® multi-wafer production burn-in system to support the continued expansion of the customer's manufacturing capacity for next-generation silicon photonic integrated circuits.

The AI industry is rapidly transitioning from moving electrons to moving photons, driving a significant expansion in silicon photonics as hyperscale data centers seek higher bandwidth, lower latency, improved power efficiency, and greater scalability. As silicon photonic integrated circuits become increasingly critical to next-generation AI networking, optical switching, co-packaged optics, linear pluggable optics, and chip-to-chip optical I/O architectures, manufacturers are placing greater emphasis on production-scale reliability screening and WLBI to ensure long-term performance while improving manufacturing yields and reducing production costs.

The ordered system is configured with nine independent WaferPak® test blades, each capable of delivering up to 3,500 watts of power for production burn-in and reliability screening of high-performance silicon photonic integrated circuits used in optical transceivers and emerging chip-to-chip optical I/O applications. The system also includes Aehr's fully integrated automated wafer-level handling solution, consisting of the FOX-XP multi-wafer production burn-in system, integrated WaferPak Auto Aligner™, robotic wafer handling, and automated wafer loading and unloading, providing a complete high-volume automated WLBI solution.

The system is expected to ship during the first half of calendar 2027.

Gayn Erickson, President and Chief Executive Officer of Aehr Test Systems, commented:

"This production order is another indication that silicon photonics is moving from technology adoption into manufacturing scale-up, and we believe that transition represents a significant long-term growth opportunity for Aehr. The order reflects our lead silicon photonics customer's continued expansion of manufacturing capacity and represents another important milestone in the industry's transition toward high-volume production of silicon photonic integrated circuits.

"As AI clusters continue to grow in size and performance, silicon photonics is emerging as a key enabling technology for delivering the bandwidth, power efficiency, and scalability required by next-generation AI infrastructure. What began with optical transceivers is now expanding into optical switching, co-packaged optics, linear pluggable optics, and chip-to-chip optical I/O.

"At the same time, the industry is moving toward more highly-integrated optical architectures that integrate or closely co-package laser sources with silicon photonic integrated circuits. These advances improve performance, reduce system cost, simplify manufacturing, and make device reliability even more critical.

"As silicon photonic devices continue to increase in complexity, power density, and production volumes, we believe WLBI is becoming a foundational manufacturing step for many of these next-generation devices. Identifying latent defects and stabilization of the integrated lasers before packaging improves manufacturing yields, lowers overall production costs, and enables the long-term reliability demanded by hyperscale AI infrastructure.

"Over the past year, we've seen a meaningful increase in engagement from silicon photonics companies around the world spanning engineering qualification systems, production capacity planning, and next-generation device roadmaps. These discussions reinforce our belief that the market is approaching an important inflection point.

"As production requirements evolve toward higher power, fully-automated wafer-level manufacturing, and larger production volumes, we believe our FOX-XP platform and integrated automated wafer-level handling solution position Aehr to become the production standard for wafer-level reliability screening of silicon photonic integrated circuits."

Industry analysts project strong growth for silicon photonics through the remainder of the decade as hyperscale AI infrastructure, cloud computing, high-performance computing, and advanced optical networking continue driving demand for higher bandwidth and lower power interconnect technologies. Emerging applications including co-packaged optics, optical switching, linear pluggable optics, and chip-to-chip optical I/O are expected to further expand the adoption of silicon photonics throughout AI infrastructure. Industry research also points to increasing adoption of integrated and co-packaged laser architectures that improve optical performance, manufacturing scalability, and system efficiency while further increasing the importance of production reliability screening.

Aehr's FOX-XP multi-wafer production burn-In system performs full WLBI, stability testing, and production screening of semiconductor devices while enabling customers to test multiple wafers simultaneously in a highly automated manufacturing environment. The FOX-XP platform supports silicon photonics, silicon carbide power semiconductors, AI processors, optical devices, and other semiconductor products requiring production burn-in and reliability screening.

About Aehr Test Systems

Headquartered in Fremont, California, Aehr Test Systems is a leading provider of test solutions for testing, burning-in, and stabilizing semiconductor devices in wafer-level, singulated die, and package-level form, and has installed thousands of systems worldwide. Increasing quality, reliability, safety, and security needs of semiconductors used across multiple applications, including advanced artificial intelligence (AI) processors, silicon photonics, data and telecommunications infrastructure, electric vehicles, electric vehicle charging infrastructure, solar and wind power, computing, and solid-state memory and storage are driving additional test requirements, incremental capacity needs, and new opportunities for Aehr's products and solutions. Aehr has developed and introduced several innovative products including the FOX-PTM families of test and burn-in systems and FOX WaferPakTM Aligner, FOX WaferPak Contactor, FOX DiePak® Carrier and FOX DiePak Loader. The FOX-XP and FOX-NP systems are full-wafer contact and singulated die/module test and burn-in systems that can test, burn-in, and stabilize a wide range of devices such as leading-edge silicon carbide-based and other power semiconductors, 2D and 3D sensors used in mobile phones, tablets, and other computing devices, memory semiconductors, processors, microcontrollers, systems-on-a-chip, and photonics and integrated optical devices. The FOX-CP system is a low-cost single-wafer compact test solution for logic, memory and photonic devices and the newest addition to the FOX-P product family. The FOX WaferPak Contactor contains a unique full-wafer contactor capable of testing wafers up to 300mm that enables IC manufacturers to perform test, burn-in, and stabilization of full wafers on the FOX-P systems. The FOX DiePak Carrier allows testing, burning in, and stabilization of singulated bare die and modules up to 1024 devices in parallel per DiePak on the FOX-NP and FOX-XP systems up to nine DiePaks at a time. Acquired through its acquisition of Incal Technology, Inc., Aehr's new line of high-power package-level reliability/burn-in test solutions for AI semiconductor manufacturers, including its ultra-high-power Sonoma family of test solutions for AI accelerators, GPUs, and high-performance computing (HPC) processors, position Aehr within the rapidly growing AI market as a turnkey provider of reliability and testing that span from engineering to high volume production. For more information, please visit Aehr Test Systems' website at www.aehr.com.

Safe Harbor Statement

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or Aehr's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern Aehr's expectations, strategy, priorities, plans, or intentions. Forward-looking statements in this press release include, but are not limited to, future requirements and orders of Aehr's new and existing customers; Aehr's ability to receive orders and generate revenue in the future, as well as Aehr's beliefs regarding the factors impacting the foregoing, including the growth of the markets referred to herein; Aehr's ability to integrate Incal efficiently; and the timing and extent to which the acquisition is accretive. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Aehr's recent Form 10-K, 10-Q and other reports filed from time to time with the Securities and Exchange Commission. Aehr disclaims any obligation to update information contained in any forward-looking statement to reflect events or circumstances occurring after the date of this press release.

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Contacts:

SOURCE: Aehr Test Systems

Investors might want to bet on Aehr Test Systems (AEHR - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Aehr Test Systems, as there has been strong agreement among the covering analysts in raising estimates.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe company is expected to earn $0.10 per share for the current quarter, which represents a year-over-year change of +900.0%.

The Zacks Consensus Estimate for Aehr Test Systems has increased 150% over the last 30 days, as one estimate has gone higher compared to no negative revisions.

Current-Year Estimate RevisionsFor the full year, the earnings estimate of $0.70 per share represents a change of +2,233.3% from the year-ago number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Aehr Test Systems. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 1350%.

Favorable Zacks RankThanks to promising estimate revisions, Aehr Test Systems currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineAehr Test Systems shares have added 9.9% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

A downtrend has been apparent in Aehr Test Systems (AEHR - Free Report) lately. While the stock has lost 18.2% over the past four weeks, it could witness a trend reversal as a hammer chart pattern was formed in its last trading session. This could mean that the bulls have been able to counteract the bears to help the stock find support.

While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnings of this company is a solid fundamental factor that enhances the prospects of a trend reversal for the stock.

Understanding Hammer Chart and the Technique to Trade ItThis is one of the popular price patterns in candlestick charting. A minor difference between the opening and closing prices forms a small candle body, and a higher difference between the low of the day and the open or close forms a long lower wick (or vertical line). The length of the lower wick being at least twice the length of the real body, the candle resembles a 'hammer.'

In simple terms, during a downtrend, with bears having absolute control, a stock usually opens lower compared to the previous day's close, and again closes lower. On the day the hammer pattern is formed, maintaining the downtrend, the stock makes a new low. However, after eventually finding support at the low of the day, some amount of buying interest emerges, pushing the stock up to close the session near or slightly above its opening price.

When it occurs at the bottom of a downtrend, this pattern signals that the bears might have lost control over the price. And, the success of bulls in stopping the price from falling further indicates a potential trend reversal.

Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors.

Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators.

Here's What Increases the Odds of a Turnaround for AEHRThere has been an upward trend in earnings estimate revisions for AEHR lately, which can certainly be considered a bullish indicator on the fundamental side. That's because a positive trend in earnings estimate revisions usually translates into price appreciation in the near term.

Over the last 30 days, the consensus EPS estimate for the current year has increased 1350%. What it means is that the sell-side analysts covering AEHR are majorly in agreement that the company will report better earnings than they predicted earlier.

If this is not enough, you should note that AEHR currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. And stocks carrying a Zacks Rank #1 or 2 usually outperform the market. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Moreover, the Zacks Rank has proven to be an excellent timing indicator, helping investors identify precisely when a company's prospects are beginning to improve. So, for the shares of Aehr Test Systems, a Zacks Rank of 1 is a more conclusive fundamental indication of a potential turnaround.

17.45K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AEHR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, July 20:

State Street Corporation (STT - Free Report) : This financial services company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.1% over the last 60 days.

State Street's shares gained 22.1% over the last three months compared with the S&P 500’s decline of 4.9%. The company possesses a Momentum Score of A.

Aehr Test Systems, Inc. (AEHR - Free Report) : This semiconductor testing solutions company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 337.5% over the last 60 days.

Aehr’s shares gained 177.6% over the last six months compared with the S&P 500’s decline of 8.9%. The company possesses a Momentum Score of A.

Nebius Group N.V. (NBIS - Free Report) : This technology company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 0.5% over the last 60 days.

Nebius’ shares gained 13.6% over the last three months compared with the S&P 500’s decline of 5.7%. The company possesses a Momentum Score of B.

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

7.84K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Shares in Aehr Test Systems (AEHR 4.09%) rose 20.9% in the week to Friday morning as the market digested its excellent fourth quarter earnings report released earlier in the week. The earnings helped confirm the company's successful transition in revenue away from the electric vehicle (EV) market toward the higher-growth AI processor market.

Why Aehr Test Systems shares soared this week Aehr makes test equipment and systems that ensure semiconductor reliability and quality. It's a critical part of chip development. Whether it's in an EV or an AI data center, it's essential that chips don't fail. As such, its bookings are often seen as a leading indicator of capital spending trends in its end markets, particularly for AI processors.

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84.20

In this context, Aehr had good news for the AI market. Its record bookings of $60.7 million in the quarter brought its second-half bookings to $97.9 million, a figure significantly above the high end of the company's $60 million to $80 million guidance range. CEO Gayn Erickson confirmed that bookings represent growth, noting that "Reliability and production wafer-level burn-in screening for AI accelerators, CPUs, and network processors were our fastest-growing markets this year, representing approximately 71% of our total annual revenue."

In addition, he disclosed that two years ago, "over 95%" of Aehr's business related to silicon carbide chips for EVs, while "our fiscal year '26 revenue came from markets not electric vehicle silicon carbide."

Image source: Getty Images

Where next for Aehr Test Systems Erickson also confirmed that its lead AI chip customer is "significantly ramping their products." Based on its orders and a $100 million backlog, management expects revenue of $130 million to $150 million in its fiscal 2027 compared to $50 million in 2026, with Erickson claiming Aehr had the capability to meet a large order if it came in.

Aehr is set to return to profitability in its fiscal 2027 and represents a speculative way to invest in the accelerating momentum of AI chip investing.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Aehr Test Systems AEHR is exploding higher on July 15 after posting blowout Q4 earnings and offering an absolute stunner of a forward guidance.

In fiscal 2027, the company expects its revenue to come in at $140 million, nearly triple the topline figure last year and miles above the consensus set at $85 million only.

However, there’s reason to treat this monumental post-earnings pop as a window to take profit and sell AEHR shares that are currently trading more than 4x above their price at the start of 2026.

AEHR stock is ripping higher on Wednesday because the firm’s Q4 release de-risked its backlog.

According to the earnings release, it ended the fourth quarter with nearly $101 million in backlog – which means roughly 72% of its ambitious fiscal 2027 revenue outlook is already booked.

Crucially, a whopping $60.7 million in bookings during Q4 yielded an exciting 3.2x book-to-bill ratio.

Investors are cheering Aehr Test Systems this morning also because of its aggressive diversification away from the sluggish electric vehicle (EV) silicon carbide market.

Non-EV markets – including artificial intelligence (AI) accelerators, silicon photonics, and optical transceivers – now account for an impressive 95% of the company’s recent annual revenue.

Despite fundamental strength, significant risks loom.

At the current price, AEHR shares are trading at an eye-watering 48x sales (P/S) – a multiple typically reserved for high-margin software giants, not cyclical hardware manufacturers.

Compounding this, Aehr Test Systems is technically non-profitable, posting negative earnings per share of 38 cents over the trailing twelve months; paying such a premium for an unprofitable name is inherently risky.

Adding fuel to the bearish thesis, insiders have been aggressively unloading shares – recording 19 sell transactions and no buys over the past three months.

And while many of these sales were tied to tax obligations on vesting shares, the optics are highly bearish and may intensify the selling pressure on AEHR in the back half of 2026.

Even from a technical perspective, investors should note that Aehr Test Systems challenged its 50-day moving average (MA) today, but failed to sustainably break above the “closely-watched” $95 level.

While the stock’s immense momentum has drawn bulls back into the fold, this rejection at a crucial resistance level suggests the immediate upside may be strictly capped.

Because AEHR shares failed to decisively clear this technical hurdle on Wednesday, the short-term trend remains vulnerable to profit-taking.

Crucially, while the consensus rating on the company remains at “Moderate Buy”, the mean price target of about $71 has already been left far behind, signaling the Street, on average, sees AEHR as overvalued currently.

All in all, Aehr Test Systems’ fundamentals sure are improving, but valuation and technical levels suggest investors could find a better risk-reward elsewhere.

Key Takeaways Aehr targets fiscal 2027 revenues of $130M-$150M, about 2.6 to 3 times fiscal 2026 sales.AI accelerators, CPUs and network processors generated about 71% of Aehr's fiscal 2026 revenues. A major AI chip supplier advanced Aehr toward pilot production after benchmark results beat expectations. Aehr Test Systems, Inc. (AEHR - Free Report) used its fourth-quarter 2026 call to focus less on the quarter itself and more on the scale of demand it sees building into fiscal 2027. Management tied that outlook to AI processors, silicon photonics and a record-effective backlog.

The company still posted a headline beat, with adjusted EPS of 11 cents versus the Zacks Consensus Estimate of a loss of 1 cent and revenues of $18.8 million versus the estimate of $18.7 million. But the call’s main takeaway was the visibility management says it now has into a much larger revenue year ahead.

AEHR Sets the Tone With 2027 TargetPresident and CEO Gayn Erickson said the company entered fiscal 2027 with strong momentum, citing record quarterly bookings, record backlog and rising demand across wafer-level and package-level burn-in. He framed those trends as the base for a multiyear growth setup rather than a one-quarter rebound.

Management guided fiscal 2027 revenues of $130 million to $150 million, or about 2.6 times to 3 times fiscal 2026 revenues, with non-GAAP pretax profitability of 18% to 22%. CFO Chris Siu said the outlook reflects current backlog and anticipated customer demand.

The quarter’s reported numbers helped support that message. Revenues rose 34% year over year, while non-GAAP net income reached $3.6 million versus a loss a year earlier.

Aehr Shifts Further Toward AI DemandErickson said nearly 95% of fiscal 2026 revenues came from markets outside electric-vehicle silicon carbide, a sharp change from two years ago. He identified AI accelerators, CPUs and network processors as the fastest-growing end market, accounting for about 71% of annual revenue.

He also said the lead AI wafer-level customer has moved all production burn-in screening to wafer level on Aehr systems and is forecasting higher capacity needs. That customer has doubled its systems and added automated aligners, underscoring how central AI has become to the company’s story.

In package-level burn-in, Erickson said the lead hyperscale customer is expanding Sonoma purchases for a second device with twice the power of the first. He added that Sonoma systems and consumables could become a larger revenue contributor as those devices ramp.

AEHR Sees a New Wafer-Level OpeningOne of the call’s more important updates came from a benchmark with a major supplier of AI accelerators, CPUs and network processors. Erickson said Aehr completed testing on one processor and produced results that exceeded the customer’s expectations.

That customer now wants to move to pilot production validation in Taiwan for a current high-volume device, and it has also asked Aehr to evaluate a second device in parallel. Erickson said the revenue opportunity from either device could be significant over both the near and long term.

During Q&A, management made clear that little to none of this potential contribution is embedded in current guidance, leaving it positioned as upside rather than a core assumption.

Aehr Builds Around Optics and PowerBeyond AI compute, Erickson highlighted silicon photonics as another key growth lane. He said the lead silicon photonics customer is ramping automated wafer-level systems, while a newer major networking customer has already ordered systems and forecast additional demand this calendar year.

Power semiconductors also remained part of the forward narrative. Management said it completed more than a dozen gallium nitride WaferPak designs, sold its first silicon MOSFET wafer-level burn-in system and saw signs of recovery in silicon carbide.

The press release added that Aehr received about $8 million of new silicon carbide wafer-level burn-in orders in the last month, including an order tied to one of the world’s largest automotive companies.

AEHR Q&A Clarifies Mix and CadenceAnalysts pressed management on what sits inside the new guide. A Craig-Hallum analyst asked about revenue mix, and Erickson said AI should remain roughly 70% of the business, silicon photonics about 15% to 20%, with power and other markets making up the rest. He also said memory is not assumed, even at the top end of guidance.

A William Blair analyst asked about timing, and Siu said the second quarter should be especially strong because of package-level Sonoma shipments. Erickson added that the first quarter has started well, while the second quarter should be bigger.

On consumables, management told analysts that WaferPaks and burn-in module boards should remain about 30% of revenues. That matters because it points to a recurring element inside what could otherwise look like a systems-heavy ramp.

Aehr Leaves an Expansion-Focused MessageThe closing impression from the call was that management is preparing for demand rather than defending the current base. Siu pointed to capacity additions in Southeast Asia and an expanded Taiwan presence, while Erickson said the company is not capacity-constrained even at the high end of current guidance.

That posture matched the balance sheet. Aehr ended the quarter with $116.5 million in cash, cash equivalents and restricted cash after raising about $100 million during fiscal 2026, giving it added flexibility to support larger customer programs.

Zacks Signals Remain MixedAEHR carries a Zacks Rank #3 (Hold). Based on Zacks’ framework, a Rank #3 can be held, but the strongest setups typically combine a Zacks Rank #1 (Strong Buy) or #2 (Buy) with Style Scores of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.

The stock’s Value Score of F, Growth Score of F and VGM Score of F point to weak cross-style characteristics, while its Momentum Score of B indicates a more favorable trend profile than its value or growth readings. Zacks also notes that estimate revisions drive the rank, so that rating can change after earnings as analysts update forecasts.
 

Aehr Test Systems stock NASDAQ:AEHR surged more than 40% in extended trading on Tuesday after the semiconductor-equipment maker delivered stronger-than-expected earnings, record bookings and an aggressive growth forecast.

The gain later eased, with the stock trading nearly 28% higher at about $92 after closing the regular session at $72.01.

The larger story is Aehr’s rapid transformation from an equipment supplier heavily dependent on electric-vehicle chips into a specialised provider serving AI processors, hyperscale data centres and silicon photonics.

Aehr has not disclosed a direct commercial relationship with Nvidia, but its testing systems could benefit from the same infrastructure cycle driving demand for advanced AI chips.

Aehr reported fiscal fourth-quarter revenue of $18.8 million, up from $14.1 million a year earlier and slightly above Wall Street’s $18.7 million estimate.

Adjusted earnings reached 11 cents per share, compared with expectations for a one-cent loss.

Bookings climbed to a record $60.7 million. Backlog stood at $80.6 million at the end of May, while effective backlog, including orders received after the quarter ended, reached $100.6 million.

The outlook supplied the biggest surprise.

Aehr expects fiscal 2027 revenue of $130 million to $150 million, equivalent to growth of about 160% to 200% from the $50 million generated in fiscal 2026. Management also forecast adjusted net income equal to 18% to 22% of revenue.

Lake Street Capital Markets had already identified Aehr’s order momentum as the central investment story.

After the previous quarterly report, the firm raised its price target to $56 from $50 and maintained a Buy rating.

Analysts said the “headline story this quarter was the bookings inflection.” The latest record figure suggests that improvement continued into the fourth quarter.

Those older valuation targets have now been overtaken by the share price; however, this raises the bar for future execution.

Aehr does not design GPUs or compete with Nvidia.

Its equipment tests and “burns in” processors under high temperatures and demanding electrical conditions, helping manufacturers identify defective components before expensive chips are installed in data centres.

Its Sonoma systems are designed for packaged AI accelerators, GPUs and high-performance computing processors.

Aehr’s FOX equipment can test chips while they remain part of a semiconductor wafer, potentially identifying failures earlier in production.

The company also sells equipment for silicon-photonics components, which use light to move data rapidly between processors, switches and servers.

Faster optical connections are becoming increasingly important as AI clusters grow larger.

Management expects AI processors to generate about 70% of fiscal 2027 revenue, with silicon photonics contributing another 15% to 20%. Potential revenue from memory testing is not included in the forecast.

The shift has been dramatic. Chief executive Gayn Erickson said on the earnings call that more than 95% of Aehr’s business was linked to silicon-carbide chips for electric vehicles two years ago.

Almost 95% of fiscal 2026 revenue came from other markets.

William Blair analyst Jed Dorsheimer upgraded Aehr to Outperform in March after the company secured several package- and wafer-level AI design wins.

William Blair estimates that the market for AI-processor burn-in equipment could reach $1.5 billion to $2.3 billion by 2030.