Core Insights - Aehr Test Systems, Inc. (NASDAQ: AEHR) has experienced an 85% increase in its share price due to receiving two follow-on orders for Sonoma packaged part burn-in systems from a leading AI company [1] Company Summary - Aehr Test Systems has secured significant orders that indicate strong demand for its products in the AI sector [1] - The company's recent performance reflects a positive market response and potential growth opportunities in the technology space [1]

Options in Aehr Test Systems (NASDAQ: AEHR ) are illiquid, but the January 2027 calls suggest that in the next 17 months, the AEHR stock price should move roughly 70%. From here, that actually seems low.I've been contributing to Seeking Alpha and other investment websites since 2011, with a general (though far from rigid) focus on value over growth. I got my Series 7 and 63 back in 1999, and watched the dot-com bubble peak and then burst in real time at a small, tech-focused retail brokerage in NYC.Analyst’ ...

The test and burn-in equipment maker got a follow-on order from an AI hyperscaler to test its own AI chips.Shares of semiconductor testing company Aehr Test Systems (AEHR 39.72%) have rocketed 37.5% on Monday as of 12:22 PM ET.Aehr makes test-and-burn-in equipment that enables chipmakers to "stress test" their semiconductors while the chips are still on the wafer or in a package, before the chips are built into completed systems.While Aehr's equipment has traditionally been used for chips in high-intensity ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended May 30, 2025 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________________ to ________________ Commission file number: 000-22893 AEHR TEST SYSTEMS (Mark One) (Exact name of registrant as specified in its charter) California 94-2424084 (S ...

Core Insights - Aehr Test Systems' shares surged over 20% following new orders for its AI processor testing solutions [1] - The recent orders come shortly after a cautious earnings report, indicating quicker-than-expected resolution of order delays [2] - The identity of the "world-leading hyperscaler" customer remains speculative, with potential candidates including Google and Microsoft [3] Company Developments - Aehr's CEO expressed cautious optimism regarding financial guidance for 2026, citing tariff-related uncertainties affecting order placements [2] - The new orders represent a significant increase, more than doubling the number of production systems with the identified customer [3] - Aehr is diversifying away from the struggling silicon carbide wafer-level burn-in test solutions market, which is primarily driven by electric vehicle demand [5] Market Outlook - The shift towards AI-driven markets is expected to enhance Aehr's long-term growth prospects [6] - Despite current challenges in the EV sector, there is an anticipation of a rebound in investment, positioning Aehr favorably for future growth [6]

Company Overview - Aehr Test Systems specializes in test and burn-in systems for integrated circuits, including the ABTS and FOX product families, as well as wafer probing and packaging solutions for logic, memory, and photonic devices in the semiconductor equipment industry [4] - The company generates revenue primarily from the sale of proprietary test systems, consumables, and related services to semiconductor manufacturers [5] - Aehr Test Systems targets global semiconductor manufacturers and integrated circuit producers seeking advanced reliability and quality assurance solutions [5] Financial Performance - As of July 2025, the market capitalization of Aehr Test Systems is $441.6 million [3] - The company reported a revenue of $59.0 million for the trailing twelve months (TTM) [3] - The net income for the same period is a loss of $3.91 million [3] - The one-year price change for the company's stock is -14.49% [3] - Year-to-date performance as of July 16, 2025, shows a decline of -11.1% [2] Recent Developments - CEO Gayn Erickson disposed of 4,518 shares valued at $62,619 to cover the exercise price of vested stock or tax liabilities, which does not constitute a sale of stock [1][6] - Post-transaction, Erickson holds 272,511 shares, valued at approximately $3.8 million [2] - The transaction is linked to the vesting of restricted stock units, indicating that Erickson's stock holdings will increase [7] Market Position and Future Outlook - Aehr Test Systems has successfully diversified its revenue streams by entering new markets such as gallium nitride (GaN) semiconductors and artificial intelligence processor burn-in markets, moving away from a heavy reliance on the silicon carbide (SiC) Wafer Level Burn In (WLBI) market [8] - The company is expected to benefit from a potential return to growth in the SiC WLBI market as the electric vehicle market improves [9][10]

Core Insights - Aehr Test Systems experienced significant stock volatility in 2025, with a 22.2% decline in the first half, following a 56% drop in the first quarter and a subsequent 77.4% rise in the last quarter of the half-year [1][2]. Financial Performance - The company's financial year ends on May 30, and for the fiscal year 2024, the silicon carbide (SiC) wafer-level burn-in (WLBI) market accounted for 90% of its sales [2]. - In fiscal year 2025, SiC WLBI revenue dropped to less than 40% of total revenue, indicating a significant shift in the company's revenue sources [4]. Market Dynamics - ON Semiconductor, a key customer, has faced a sales slowdown, reflecting a broader downturn in the SiC market, particularly in the electric vehicle (EV) sector, influenced by high interest rates and a correction from previous EV spending booms [3]. - The weakening EV market negatively impacted Aehr's growth prospects in the SiC WLBI market during the first three months of fiscal 2025 [4]. Strategic Developments - A turnaround in Aehr's stock occurred after the third-quarter earnings report in April, where management announced plans to expand into new markets, projecting that 35% of revenue would come from the artificial intelligence (AI) processor burn-in market [5]. - The company has secured four customers contributing over 10% of revenue, with three of these being in new markets, including gallium nitride (GaN) semiconductor supply for the automotive sector [5]. Customer Base and Future Outlook - Aehr has identified a major hyperscaler as a first production AI customer in the packaged part burn-in (PPBI) market, with notable customers including Microsoft, Google, Nvidia, ON Semiconductor, and Infineon [7]. - Management believes that AI end markets could be 3 to 5 times larger than traditional SiC markets, which is driving optimism and strength in the current stock price [8].

Core Viewpoint - Aehr Test Systems, Inc. (AEHR) is being highlighted as a potential investment opportunity due to its efforts in diversifying revenue streams and the prospect of returns [1] Company Analysis - The company has initiated a strategy to diversify its revenue streams, which is seen as a positive move for potential growth [1] - The analysis is backed by the author's extensive experience in financial markets and institutions, providing a solid foundation for the investment thesis [1] Market Context - The focus is on mid and small-cap companies, indicating a niche market that may present undervalued investment opportunities [1]

Aehr Systems (NASDAQ: AEHR ) reported Q4 numbers, which did not make investors happy due to tariff uncertainties and sharp declines in sales. I wanted to go through the numbers in more detail and give some comments on the outlook andMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from ...

Financial Data and Key Metrics Changes - The company reported revenue of $59 million for the fiscal year, down 11% year-over-year [46] - Non-GAAP gross margin for the full year was 44%, compared to 49.6% in the prior year [46] - Non-GAAP net income for the fiscal year was $4.6 million, or $0.15 per diluted share, down from $35.8 million, or $1.21 per diluted share, in the previous year [46] - Fourth quarter revenue totaled $14.1 million, a 15% decrease compared to $16.6 million in Q4 last year [47] - Non-GAAP gross margin for Q4 was 34.7%, down from 51.5% in the same period last year [49] Business Line Data and Key Metrics Changes - AI processor burn-in now accounts for over 35% of total revenue, up from 0% last year [47] - WaferPak revenues were $4.2 million, representing 30% of total revenue in Q4 [48] - Sales of packaged part burn-in systems accounted for 44% of Q4 revenue [49] Market Data and Key Metrics Changes - The company has diversified its revenue sources, with silicon carbide devices making up less than 40% of revenue this fiscal year, down from over 90% last year [8] - The company is expanding into new markets, including gallium nitride power semiconductors and silicon photonics integrated circuits [29][33] Company Strategy and Development Direction - The company aims to increase research and development investments to support product enhancements and expand its AI customer base [40][55] - The focus for the upcoming fiscal year includes securing and executing orders across various market verticals, with expectations of order growth [41] - The company has completed the integration of InCal, which is expected to create synergies and reduce facility costs by over $800,000 per year [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook despite temporary withdrawal of financial guidance due to tariff-related uncertainties [41][54] - The company anticipates growth opportunities in diverse markets, particularly in AI processors and gallium nitride power semiconductors [54] Other Important Information - The company has no debt and continues to invest excess cash in money market funds [52] - The class action claims against the company were voluntarily dismissed, with no related proceedings currently pending [53] Q&A Session Summary Question: Clarification on customer list in investor deck - The updated customer list reflects current customers from the InCal package part burn-in side of the business, not prospects [58][60] Question: AI market potential compared to silicon carbide - The AI market is expected to be significantly larger than the silicon carbide market, with estimates suggesting it could be three to five times larger [63][66] Question: Gross margin decline explanation - The decline in gross margin is attributed to a mix issue, with lower-margin packaged part systems contributing to the overall decrease [72][73]