Core Viewpoint - Aehr Test Systems is positioned for significant growth due to its focus on testing solutions for semiconductor devices, particularly in the electric vehicle (EV) and artificial intelligence (AI) sectors [2][3][7]. Group 1: Company Overview - Aehr Test Systems specializes in test solutions for semiconductor devices, including wafer-level burn-in (WLBI) for silicon carbide (SiC) chip manufacturers [3]. - The company has a concentrated customer base, with five large customers accounting for 97%, 93%, and 77% of total sales in fiscal years 2023, 2024, and 2025, respectively [4]. Group 2: Market Dynamics - The semiconductor industry is cyclical, with profits fluctuating significantly between up and down years, making it crucial to monitor market cycles [2]. - The SiC chip market, primarily driven by EVs, has seen a slowdown in growth as automakers have reduced their EV development plans [5]. Group 3: Growth Opportunities - Aehr is expanding its WLBI test solutions to include AI processors, which will diversify its revenue and tap into the growing AI/data center market [7][8]. - The company has secured orders from a leading hyperscaler for AI processor testing, indicating strong future demand [8]. Group 4: Financial Outlook - Analysts project revenue growth of 35% and 26% for Aehr in fiscal years 2027 and 2028, respectively, driven by recovery in the EV market and sustained growth in AI spending [15]. - Teradyne and Advantest, early-stage semiconductor testing companies, have reported strong earnings, suggesting positive trends for later-stage companies like Aehr [11][14].