Aehr Test Systems (AEHR)

Aehr Test Systems' stock has experienced significant volatility. The 52-week low was $6.27 on April 4, 2025. In June 2025, the stock rose by 35.5% due to positive developments in AI and GaN solutions. July 8, 2025, financial results indicated market expansion and customer diversification, with AI processors representing over 35% of its business. In July 2025, the stock jumped over 20% following preliminary financial results and anticipation of a CEO Investor Summit, potentially due to a short squeeze. In August 2025, AEHR's stock surged over 40% after new AI chip testing orders. As of October 1, 2025, the stock price was $33.25, and on October 22, 2025, it was $23.68, a 54.87% increase over the past year. In early October 2025, Q1/FY2026 results were slightly ahead of expectations, but order intake was disappointing, with revenues of $11.0 million and the core silicon carbide business suffering from slower EV adoption, shifting the narrative towards AI.

Demand for Aehr Test Systems' products is tied to the semiconductor industry's cyclical nature and capital expenditures by manufacturers. Historically driven by the SiC market for EV applications, demand experienced weakness due to factors like high interest rates. Aehr Test Systems has diversified its revenue streams, with AI processor burn-in growing to represent over 35% of the company's business. The company is expanding into emerging markets such as 5G, AI, and GaN semiconductors. The semiconductor industry is anticipated to rebound in late 2025 or early 2026, driven by normalizing inventory levels and expanding wafer fabrication capacity, with the global AI semiconductor market projected to surge.

Aehr Test Systems designs, manufactures, markets, and sells advanced test and burn-in products crucial for ensuring the reliability and performance of semiconductor devices, particularly in high-growth areas such as automotive, AI, and high-performance computing. Major products include FOX-P™ Test Systems for high-volume production, FOX-NP™ Test Systems for engineering and low-volume production, ABTS™ and MAX systems for burning-in microprocessors, DSPs, memories, and system LSI, WaferPak™ Contactors for wafer-level testing, DiePak® Carriers for producing Known-Good Die (KGD), and Synoma™ ultra high-power packaged part burn-in systems for AI burn-in testing.

Aehr Test Systems is headquartered in Fremont, California, and operates worldwide, with approximately 70% of its revenue derived from non-U.S. regions.

Aehr Test Systems' brand reputation has been influenced by its strategic pivot and market performance, recognized for its innovative test and burn-in solutions in automotive, AI, and high-performance computing. Its diversification into AI processor testing has positively impacted its standing. Challenges include dependence on the SiC market, shareholder lawsuits, stock volatility, and guidance withdrawal. The company has actively worked to shift its narrative to being an "AI play."

Aehr Test Systems has a mixed ownership structure, with institutional shareholders owning approximately 58.72%, insiders holding about 16.63%, and retail investors accounting for 24.65%. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and Baillie Gifford & Co. The largest individual shareholder is Robert R. Anderson, owning 3.59% of the company, and CEO Gayn Erickson holds 1.2% of the shares.