Why Aehr Test Systems Stock Just Crashed

Core Insights - Aehr Test Systems (NASDAQ: AEHR) experienced a significant stock decline of 25.7% despite reporting better-than-expected earnings and revenue for fiscal Q1 2026 [1][3] - The company reported sales of $11 million, which was a 16% decrease year-over-year, and a non-GAAP profit of $0.01, contrasting with a GAAP loss of $0.07 per share [3][5] - New bookings for the quarter were $11.4 million, indicating weaker demand compared to the previous year [4][6] Financial Performance - Aehr's Q1 2026 sales of $11 million exceeded analyst expectations of $10.8 million but represented a 16% decline from the previous year [1][3] - The reported adjusted profit of $0.01 per share was overshadowed by a GAAP loss of $0.07 per share, a reversal from last year's profit of $0.02 per share [3][7] Market Sentiment - CEO Gayn Erickson highlighted growth in AI processor qualification and production burn-in as positive trends, yet the overall numbers reflect a contraction rather than growth [5][6] - Despite the broader excitement in the semiconductor industry driven by AI advancements, Aehr has not effectively capitalized on these trends [6][7]