Aehr Test Systems

Aehr Test Systems is diversifying beyond its traditional silicon carbide exposure, with nearly 95% of fiscal 2026 revenues now coming from markets outside EV-related SiC, compared with more than 95% of its business tied to SiC for electric vehicles two years ago. AI accelerators, CPUs and network processors accounted for about 71% of fiscal 2026 revenues, while optical device test and burn-in for data-center infrastructure transceivers, chip-to-chip I/O and hard disk drives represented another 20%. Momentum has continued into fiscal 2027, with AEHR securing a $22 million follow-on order for AI processor wafer-level burn-in systems in August, along with another follow-on production order for silicon photonics. Power semiconductors provide another leg to the growth story, as AEHR received roughly $8 million of new SiC wafer-level burn-in orders in July as EV programs picked up, and the company is expanding into gallium nitride applications while memory remains a longer-term opportunity spanning NAND and high-bandwidth memory. The company's $100.6 million effective backlog and $130-$150 million fiscal 2027 revenue outlook support near-term growth, though sustaining that pace will depend on continued ramps in AI and silicon photonics, a recovery in power semiconductor demand and successful expansion into new applications. Aehr competes with Teradyne and FormFactor in a highly competitive semiconductor test equipment market, and its shares have surged 152.6% over the past six months, trading at a forward 12-month price-to-sales multiple of 19.05X versus the industry's 5.72X, with the Zacks Consensus Estimate for fiscal 2027 earnings at 74 cents per share.

Aehr Test Systems shares have surged 72.2% over the past month, far outpacing the broader industry's 7.4% gain and the S&P 500's 2.9% rise. The rally follows record fourth-quarter fiscal 2026 bookings of $60.7 million and an effective backlog of about $100.6 million, which boosted confidence in demand for its semiconductor test and burn-in systems used in AI processors, silicon photonics, and power devices. For fiscal 2027, the Zacks Consensus Estimate projects EPS of 70 cents, up sharply from 3 cents a year ago, with revenues expected to reach $140.20 million, a 180.4% increase. The company also 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. Despite the strong growth outlook, the stock trades at 24.62 times forward sales, well above the industry average of 6.32 times, leaving little room for execution missteps.

Wall Street's major averages ended the week lower as a prolonged sell-off in semiconductor stocks weighed on sentiment and investors digested the start of second-quarter earnings season. The S&P 500 lost 1.6%, the Nasdaq Composite dropped 2.9%, and the Dow declined 0.9%. IBM shares plunged about 27% after the company released disappointing preliminary second-quarter results, with CEO Arvind Krishna citing missed large deals and a faster-than-expected shift in customer spending toward AI infrastructure. Taiwan Semiconductor Manufacturing reported better-than-expected second-quarter results and raised its 2026 revenue growth outlook for the second time this year, with net revenue growing 33.7% year-over-year to $40.20 billion and EPS per ADR surging about 74% to $4.31. PayPal shares advanced over 20% after reports that Stripe and Advent International jointly offered to acquire the company for $60.50 per share, valuing it at more than $53 billion. Among other notable movers, Aehr Test Systems jumped about 22% on stronger-than-expected quarterly results and record bookings, while Yum! Brands fell nearly 10% amid a U.S. health investigation into a cyclosporiasis outbreak potentially linked to Taco Bell lettuce. The semiconductor sell-off continued with SanDisk down 24.6%, Marvell Technology down 17.4%, and Western Digital down 13.6%.

Aehr Test Systems shares jumped 20.9% this week after the company reported record bookings and confirmed a successful shift from electric vehicle silicon carbide chips to AI processors. Bookings reached $60.7 million in the fiscal fourth quarter, bringing second-half bookings to $97.9 million, well above the high end of the $60 million to $80 million guidance range. CEO Gayn Erickson said AI accelerators, CPUs, and network processors accounted for approximately 71% of total annual revenue, compared with over 95% of business tied to EV silicon carbide chips two years ago. Based on orders and a $100 million backlog, management expects fiscal 2027 revenue of $130 million to $150 million, up from $50 million in fiscal 2026, and a return to profitability.

Aehr Test Systems shares surged 30% after the semiconductor test and burn-in equipment provider reported fiscal fourth-quarter results that exceeded Wall Street expectations and issued a fiscal 2027 revenue forecast well above analyst estimates. The company posted adjusted earnings of $0.11 per diluted share for the quarter ended May 29, 2026, compared with expectations for a loss of $0.01 per share, while revenue came in at $18.8 million, ahead of the $17.9 million consensus. Aehr also reported record quarterly bookings of $60.7 million, contributing to a backlog of $80.6 million as of May 29, with an effective backlog of approximately $100.6 million including post-quarter bookings. For fiscal 2027, management forecast revenue of between $130 million and $150 million, significantly above analyst expectations of roughly $85 million. The company ended the fiscal year with $116.5 million in cash, cash equivalents and restricted cash, up from $37.1 million at the end of the prior quarter.

PayPal Holdings surged more than 20% in premarket trading after Reuters reported that payments giant Stripe and private equity firm Advent International submitted a joint takeover offer valuing the company at more than $53 billion. The consortium offered $60.50 per share, a roughly 28% premium to PayPal's previous close. The proposed acquisition would be one of the largest fintech deals in years. Separately, Aehr Test Systems rallied 29% after fiscal fourth-quarter adjusted earnings of $0.11 per share beat expectations for a $0.01 loss, with revenue up 33% year-on-year to $18.8 million. Ernexa Therapeutics soared 30% on preclinical data for its ovarian cancer therapy candidate, Redwire Corp. rose 4.6% on $21.5 million in follow-on orders for Stalker unmanned aerial systems, and XPeng gained 4% after the Wall Street Journal reported plans to launch a humanoid robot globally in 2027 with monthly production capacity exceeding 1,000 units by year-end. On the downside, Pentair tumbled nearly 20% after cutting its full-year outlook, announcing the CFO's departure, and disclosing preliminary second-quarter sales well below guidance due to inventory destocking in its pool products business.

Alphabet has signed an agreement with Cypress Creek Energy to develop the Steel River Energy Center, its largest solar project in the United States, located in Mississippi County, Arkansas. Aehr Test Systems surged over 25% in after-hours trading after reporting Non-GAAP EPS of $0.11, beating estimates by $0.12, and revenue of $18.8 million, up 33.4% year-over-year. Phoenix Education Partners shares dropped 11% despite posting Non-GAAP EPS of $1.43, topping estimates by $0.11, and revenue of $271.8 million, flat year-over-year but ahead of expectations by $0.55 million.

Small-cap stocks were the best-performing asset class in the first half of 2026, with the Russell 2000 index up 20% year to date, outperforming the S&P 500, Nasdaq, S&P 400 mid-cap index, and Russell 1000. Over the past 12 months, the Russell 2000 has returned 35%, compared to 27% for the Nasdaq and 20% for the S&P 500. The surge is driven by a rotation out of overvalued large-caps, an expanding AI supply chain benefiting small-cap semiconductor stocks like Aehr Test Systems, MaxLinear, Navitas, and Wolfspeed, a robust mergers and acquisitions market, and small-cap earnings expected to grow 38% to 48% in 2026, roughly double the S&P 500's rate. While declining rates have helped, potential Federal Reserve rate hikes and inherent volatility pose risks, making a small-cap ETF a prudent choice. An actively managed option like the Fidelity Enhanced Small-Cap Core ETF, up 26% year to date, offers diversified exposure.

Leverage Shares by Themes launched a new 2X single-stock leveraged ETF tied to Aehr Test Systems, trading on Cboe under ticker AEHG starting June 26, 2026. The fund targets 200% daily exposure to Aehr Test Systems (NASDAQ: AEHR) and carries a 0.99% expense ratio. Paul Marino, Chief Revenue Officer of Themes ETFs, said the product offers active traders amplified exposure to a company positioned in AI infrastructure, electric vehicles, and advanced computing.

Aehr Test Systems shares experienced a sharp upward move following the announcement of a new production order, reflecting growing confidence in the company's positioning within the semiconductor test equipment market. The order arrives amid unprecedented demand driven by artificial intelligence infrastructure buildout and the reshoring of chip manufacturing to the United States, with hyperscale technology companies projected to spend about $755 billion on AI-related capital expenditures in 2026. Aehr's order likely reflects expanding need for wafer-level burn-in and test solutions as chipmakers ramp production of silicon carbide, gallium nitride, and other advanced semiconductor materials. The new order extends backlog visibility, supports stronger utilization of manufacturing capacity, and reinforces expectations for revenue and margin expansion. Despite the positive commercial validation, Wall Street sees AEHR shares as overvalued, with a consensus rating of Moderate Buy and a mean price target of nearly $64 signaling potential downside of more than 40% from current levels.

Aehr Test Systems shares surged as much as 17.8% in early trading Wednesday after the company announced a repeat order for its automated wafer burn-in systems from a leading maker of networking products and fiber-optic transceivers for data centers. The order is for a fully loaded FOX-XP system capable of testing up to nine silicon wafers at a time, with delivery expected within six months. While the dollar amount was not disclosed, the order is part of a larger relationship that includes at least one earlier system shipment and a forecast for additional systems this calendar year. This marks at least the sixth full-system order since mid-February, each representing multi-million dollar revenue boosts for a company that recorded just $45 million in total sales last year. The stock has soared 937% over the past 52 weeks and trades at 81 times trailing sales.

UniQure shares surged 67.5% in premarket trading after the gene therapy developer said the U.S. Food and Drug Administration agreed that three-year data from its Phase I/II study of AMT-130 could serve as the primary basis for a Biologics License Application seeking accelerated approval for Huntington's disease. Aehr Test Systems jumped 11% after announcing a follow-on production order for a fully automated FOX-XP wafer-level burn-in system from a major silicon photonics customer, with delivery expected within six months. Genco Shipping & Trading rose 8% after Diana Shipping increased its acquisition proposal to $27.34 per share in cash and stock, representing a substantial premium. Snap shares remained under pressure following a 9.6% drop in the previous session after unveiling its standalone augmented reality glasses, with investors skeptical about the commercial prospects. Leidos Holdings slipped 1.3% after BofA Securities downgraded the defense contractor to Neutral from Buy and cut its price target to $125 from $200.