Aehr Test Systems (NASDAQ:AEHR) saw its stock spike more than 40% in extended trading Tuesday after the semiconductor equipment maker reported stronger-than-expected earnings, record bookings, and an aggressive growth outlook tied to artificial intelligence. The shares later settled about 28% higher near $92, after closing the regular session at $72.01.
The surge reflects a dramatic transformation at Aehr, which has shifted from a supplier heavily dependent on electric-vehicle chips to a specialized provider serving AI processors, hyperscale data centers, and silicon photonics. While the company has not disclosed a direct commercial relationship with Nvidia, its testing systems could benefit from the same infrastructure cycle driving demand for advanced AI chips.
Record Bookings Underpin Rally
Aehr reported fiscal fourth-quarter revenue of $18.8 million, up from $14.1 million a year earlier and slightly above the $18.7 million consensus estimate. Adjusted earnings came in at 11 cents per share, versus expectations for a one-cent loss.
Bookings surged to a record $60.7 million. Backlog stood at $80.6 million at the end of May, while effective backlog—including orders received after the quarter ended—reached $100.6 million.
The outlook provided the biggest surprise. Management forecast fiscal 2027 revenue of $130 million to $150 million, representing growth of roughly 160% to 200% from the $50 million generated in fiscal 2026. Adjusted net income is expected to be 18% to 22% of revenue.
Lake Street Capital Markets had previously highlighted Aehr's order momentum as the central investment story. After the prior quarterly report, the firm raised its price target to $56 from $50 and maintained a Buy rating. Analysts noted that the "headline story this quarter was the bookings inflection." The latest record figure suggests that improvement continued into the fourth quarter.
AI Pivot Drives Growth
Aehr does not design GPUs or compete directly with Nvidia. Instead, its equipment tests and "burns in" processors under high temperatures and demanding electrical conditions, helping manufacturers identify defective components before expensive chips are installed in data centers.
Its Sonoma systems are designed for packaged AI accelerators, GPUs, and high-performance computing processors. The FOX equipment can test chips while they remain part of a semiconductor wafer, potentially identifying failures earlier in production. The company also sells equipment for silicon-photonics components, which use light to move data rapidly between processors, switches, and servers—a capability becoming increasingly important as AI clusters grow larger.
Management expects AI processors to generate about 70% of fiscal 2027 revenue, with silicon photonics contributing another 15% to 20%. Potential revenue from memory testing is not included in the forecast.
The shift has been dramatic. CEO Gayn Erickson said on the earnings call that more than 95% of Aehr's business was linked to silicon-carbide chips for electric vehicles two years ago. Now, almost 95% of fiscal 2026 revenue came from other markets.
William Blair analyst Jed Dorsheimer upgraded Aehr to Outperform in March after the company secured several package- and wafer-level AI design wins. William Blair estimates that the market for AI-processor burn-in equipment could reach $1.5 billion to $2.3 billion by 2030.
While the stock's rapid ascent raises the bar for future execution, the record bookings and AI-focused pivot provide tangible support for the bullish thesis. Investors will watch closely to see if Aehr can sustain its momentum as the AI infrastructure buildout continues.
This article is for informational purposes only and does not constitute financial advice.
