Here's Why Aehr Test Systems Crashed This Week

Core Viewpoint - Aehr Test Systems experienced a significant decline in share price following disappointing second-quarter 2025 earnings and management's outlook for the year [1] Group 1: Company Performance - Shares in Aehr Test Systems fell by 25.7% in the week leading up to Friday morning [1] - The company has historically derived 90% of its sales from the silicon carbide chip market, which is heavily tied to the electric vehicle (EV) sector [2] - CEO Gayn Erickson indicated that growth in silicon carbide sales outside of China is expected to remain challenging until 2026 [3] Group 2: Market Conditions - The EV market has faced difficulties over the past year, with automakers reducing production plans due to disappointing sales [3] - There are trade and intellectual property risks associated with the Chinese market, which the company is cautiously optimistic about [3] Group 3: Future Opportunities - Aehr Test Systems recently secured a $10 million deal for test and burn-in equipment for an AI customer, indicating potential growth in this sector [4] - The company is also looking to expand into the gallium nitride semiconductor market to diversify its revenue streams [4]