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1. Company Snapshot

1.a. Company Description

Aehr Test Systems provides test systems for burning-in and testing logic, optical, and memory integrated circuits worldwide.It offers products, such as the ABTS and FOX-P families of test and burn-in systems and FOX WaferPak Aligner, FOX-XP WaferPak Contactor, FOX DiePak Carrier, and FOX DiePak Loader.The ABTS system is used in production and qualification testing of packaged parts for lower power and higher power logic devices, as well as various common types of memory devices.


The FOX-XP and FOX-NP systems are wafer contact and singulated die/module test and burn-in systems used for burn-in and functional test of complex devices, such as memories, digital signal processors, microprocessors, microcontrollers, systems-on-a-chip, and integrated optical devices.The FOX-CP system is a single-wafer compact test and reliability verification solution for logic, memory, and photonic devices.The WaferPak Contactor contains a unique full wafer probe card capable of testing wafers up to 300mm that enables IC manufacturers to perform test and burn-in of full wafers on Aehr Test FOX systems.


The DiePak Carrier is a reusable, temporary package that enables IC manufacturers to perform final test and burn-in of bare die and modules.Aehr Test Systems was incorporated in 1977 and is headquartered in Fremont, California.

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1.b. Last Insights on AEHR

Aehr Test Systems' recent stock performance was negatively driven by weak Q2 earnings and revenue, missing estimates by $0.01 and $5.5 million, respectively. The company's earnings guidance also disappointed investors, contributing to its stock decline. Furthermore, the company is facing securities law violations and class action lawsuits, which may impact investor confidence and drive down the stock price.

1.c. Company Highlights

2. Aehr Test Systems' Fiscal 2026 Second-Quarter Earnings: A Deeper Dive

Aehr Test Systems reported a revenue of $9.9 million for the fiscal 2026 second quarter, a decline of 27% from the $13.5 million recorded in the same period last year. The decrease was primarily attributed to lower WaferPak shipments. The company's non-GAAP gross margin stood at 29.8%, while the non-GAAP net loss was $1.3 million or negative $0.04 per diluted share, compared to a net income of $0.7 million or $0.02 per diluted share in the second quarter of fiscal 2025. Notably, the actual EPS of -$0.04 beat estimates of -$0.08. The non-GAAP operating expense was $5.7 million, down 4% from the same quarter last year.

Publication Date: Jan -11

📋 Highlights
  • Revenue Decline: Q2 revenue fell 27% to $9.9M from $13.5M YoY, driven by lower WaferPak shipments.
  • Strong Backlog Growth: Backlog rose to $18.3M after Q3 bookings surged $6.5M in first six weeks.
  • 2027 Outlook: Booking guidance of $60–80M in H2 FY2026 sets stage for $70–80M revenue in FY2027.
  • AI & Advanced Tech Wins: Secured major AI ASIC forecast and expanded into GaN, silicon photonics, and flash memory.
  • Financial Metrics: Non-GAAP gross margin at 29.8%, but net loss widened to $1.3M vs. $0.7M profit YoY.

Bookings and Backlog

Despite the revenue decline, Aehr Test Systems' bookings were $6.2 million, and the backlog stood at $11.8 million. However, during the first six weeks of the third quarter, bookings surged by $6.5 million, growing the effective backlog to $18.3 million. The company expects bookings of $60 million to $80 million in the second half of fiscal 2026, driven primarily by the AI accelerator processor line, with some contribution from silicon carbide and silicon photonics. This sets the stage for a strong fiscal 2027, with analysts estimating revenue growth of 42.4% for next year.

Product Developments and Customer Wins

Aehr Test Systems made significant progress in wafer-level burn-in and packaged-part burn-in segments, particularly in AI processors, flash memory, silicon photonics, and gallium nitride power semiconductors. The company secured key new device wins for its Sonoma system, supporting high-temperature operating life qualifications for AI devices. Aehr's CEO, Gayn Erickson, stated that the AI business could be measured in hundreds of millions of dollars for Aehr Test a few years out. The company is working with a notable customer on a benchmark for wafer-level burn-in, with some delays due to differences between package and wafer-level testing.

Valuation and Outlook

With a current P/S Ratio of 14.83 and an EV/EBITDA of -83.5, the market is pricing in significant growth expectations for Aehr Test Systems. The company's revenue guidance for the second half of fiscal 2026 is between $25 million and $30 million, with a non-GAAP net loss per diluted share expected between negative $0.09 and negative $0.05. As the company continues to invest in R&D, particularly in AI wafer-level burn-in, packaging, and memory systems, the expectation is for increased revenue and a strong year heading into fiscal 2027.

3. NewsRoom

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Aehr Test Systems (NASDAQ:AEHR) Trading 8.1% Higher – Still a Buy?

Feb -22

Source: defenseworld.net

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Aehr Test Systems to Participate in the Susquehanna 15th Annual Technology Conference on February 26, 2026

Feb -19

Source: accessnewswire.com

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AEHR's +25% Spike: Latest AI Hyperscaler Order Improves Outlook

Feb -16

Source: marketbeat.com

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Aehr Test Systems Sees Unusually Large Options Volume (NASDAQ:AEHR)

Feb -12

Source: defenseworld.net

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Stock Market Today, Feb. 11: S&P 500 Flatlines as Strong Jobs Data Reduces Rate Cut Likelihood

Feb -11

Source:

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Why Aehr Test Systems Stock Soared Today

Feb -11

Source: fool.com

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Aehr Secures Key AI Production Burn-in Win with Initial Order of Sonoma Systems for Lead Hyperscale Customer's Next-Generation AI ASIC Processors

Feb -11

Source: accessnewswire.com

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Why Aehr Test Systems Soared Higher by 13% Today

Feb -06

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

Wafer-level

Expected Growth: 10.2%

Increasing demand for semiconductor devices, growing adoption of IoT and AI technologies, and the need for efficient testing solutions drive the growth of wafer-level testing market.

Test During Burn-in

Expected Growth: 10.2%

Growing demand for high-reliability semiconductor devices in automotive, industrial, and aerospace applications drives the adoption of TDBI, enabling manufacturers to improve yield and reduce costs.

7. Detailed Products

FOX-XP

Aehr Test Systems' FOX-XP is a highly scalable and configurable test system designed for high-volume production testing of flash and other non-volatile memory devices.

FOX-NP

The FOX-NP is a low-cost, compact test system designed for production testing of flash and other non-volatile memory devices.

FOX-15

The FOX-15 is a highly flexible and configurable test system designed for testing and validation of a wide range of semiconductor devices.

ABTS

Aehr Test Systems' ABTS (Advanced Burn-In and Test System) is a highly scalable and configurable test system designed for burn-in and test of semiconductor devices.

Services

Aehr Test Systems offers a range of services, including test program development, test fixture design and fabrication, and on-site test and support services.

8. Aehr Test Systems's Porter Forces

Forces Ranking

Threat Of Substitutes

Aehr Test Systems has a moderate threat of substitutes due to the availability of alternative testing solutions from competitors.

Bargaining Power Of Customers

Aehr Test Systems has a low bargaining power of customers due to its strong relationships with key customers and limited customer concentration.

Bargaining Power Of Suppliers

Aehr Test Systems has a moderate bargaining power of suppliers due to the availability of multiple suppliers for its components and materials.

Threat Of New Entrants

Aehr Test Systems has a low threat of new entrants due to the high barriers to entry in the semiconductor testing industry.

Intensity Of Rivalry

Aehr Test Systems operates in a highly competitive industry with intense rivalry among established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.69%
Debt Cost 3.95%
Equity Weight 92.31%
Equity Cost 13.82%
WACC 13.06%
Leverage 8.33%

11. Quality Control: Aehr Test Systems passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Arteris

A-Score: 4.3/10

Value: 8.0

Growth: 2.1

Quality: 5.4

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Aehr Test

A-Score: 4.0/10

Value: 6.2

Growth: 3.3

Quality: 4.5

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
WiSA Technologies

A-Score: 3.8/10

Value: 7.3

Growth: 4.7

Quality: 3.3

Yield: 0.0

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
AXT

A-Score: 3.8/10

Value: 6.6

Growth: 0.8

Quality: 4.3

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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MaxLinear

A-Score: 3.2/10

Value: 7.3

Growth: 0.6

Quality: 4.7

Yield: 0.0

Momentum: 4.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
CEVA

A-Score: 3.1/10

Value: 7.5

Growth: 1.6

Quality: 4.5

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.6$

Current Price

33.6$

Potential

-0.00%

Expected Cash-Flows