Aehr Test Systems

AEHR

Market cap $878M

In today's video, I discuss recent updates affecting Aehr Test Systems (AEHR 0.85%) and other semiconductor stocks. To learn more, check out the short video, consider subscribing, and click the special offer link below.

After posting its largest single-day gain of 2025, small-cap chip stock Aehr Test Systems NASDAQ: AEHR just took a huge hit. On Oct. 7, shares closed down by more than 17% as the market reacted to the company's latest earnings report.

While Aehr Test Systems reported Q1/FY2026 slightly ahead of muted expectations, the company's order intake was disappointing. In addition, management's persistent refusal to provide guidance wasn't exactly suited to instill confidence in the company's near-term prospects. While management has succeeded in its efforts to shift the narrative to AI, persistent silicon carbide market weakness will continue to impact sales and margins in FY2026.

I believe Aehr Test Systems' post-earnings selloff is an overreaction as weak earnings were expected due to the ongoing broader semiconductor industry weakness. The post-earnings selloff overlooks Aehr's potential to displace inefficient burn-in processes performed by ASIC suppliers with its FOX systems and the high-margin WaferPaks. Aehr's ongoing paid evaluation with a leading AI processor supplier could be a prelude to significant production orders for FOX-XP systems and WaferPaks in FY 2027.

Aehr Test Systems (AEHR -22.40%) stock tumbled 25.7% through 9:45 a.m. ET Tuesday despite beating on both top and bottom lines last night.

U.S. stock futures were slightly higher this morning, with the Dow futures gaining around 0.1% on Tuesday.

Aehr Test Systems, Inc. (NASDAQ:AEHR ) Q1 2026 Earnings Call October 6, 2025 5:00 PM EDT Company Participants Gayn Erickson - President, CEO & Director Chris Siu - CFO, Executive VP of Finance & Secretary Conference Call Participants Jim Byers - PondelWilkinson Inc. Christian Schwab - Craig-Hallum Capital Group LLC, Research Division Mark Shooter - William Blair & Company L.L.C., Research Division Bradford Ferguson - Halter Ferguson Financial, Inc. Larry Chlebina - Chlebina Capital Management, LLC Presentation Operator Greetings.

FREMONT, CA / ACCESS Newswire / October 6, 2025 / Aehr Test Systems (NASDAQ:AEHR), a worldwide supplier of semiconductor test and burn-in equipment, today announced financial results for its first quarter of fiscal 2026 ended August 29, 2025. Fiscal First Quarter Financial Results: Net revenue was $11.0 million, compared to $13.1 million in the first quarter of fiscal 2025.

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