Aehr Test Systems (AEHR) AI Stock Analysis

• Market Cap: $676.05M
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: -3.23%
• EPS Growth: -122.16%
• Country: US
• Employees: 115
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.01
• Shares Outstanding: 30,006,590
• 10 Day Avg. Volume: 646,614
• 30 Day Avg. Volume: 1,066,248
• PEG Ratio: 0.65
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 4.79
• P/FCF Ratio: -22.77
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 12.90
• Enterprise Value/Gross Profit: 35.61
• Enterprise Value/Ebitda: -174.59
• 1Y Price Target: $24.00
• Price Target Upside: -3.07% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $23.00 ▼(-7.11% Downside)

Aehr Test Systems' overall stock score is primarily influenced by its financial performance challenges, including declining revenue and profitability. The earnings call provided some optimism with strong sales momentum, but technical analysis and valuation remain weak, reflecting operational and market challenges.

Positive Factors

Strategic Focus on AI Processors

Aehr Test Systems' strategic focus on AI processors, with significant customer engagement, positions it well for growth in a high-demand sector.

Increased Manufacturing Capacity

The expansion of manufacturing capacity by five times allows Aehr Test Systems to meet higher demand, supporting long-term growth.

Expansion in Wafer Level Burn-In Systems

The installation of the first production wafer level burn-in systems enhances Aehr Test Systems' competitive edge in advanced testing solutions.

Negative Factors

Declining Revenue and Profitability

Declining revenue and profitability indicate operational challenges that could hinder long-term financial health and growth prospects.

Lower Gross Margin

A significant drop in gross margin suggests pricing pressure and cost management issues, affecting long-term profitability.

Cash Flow Issues

Negative cash flows indicate liquidity challenges, potentially limiting Aehr Test Systems' ability to invest in growth and innovation.

Aehr Test Systems Business Overview & Revenue Model

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.

How the Company Makes Money

Aehr Test Systems generates revenue primarily through the sale of its test and burn-in systems, which are sold to semiconductor manufacturers and testing facilities. The company also earns income from providing maintenance services, spare parts, and upgrades for its equipment. Key revenue streams include the initial sale of testing equipment, ongoing service contracts, and the sale of consumables associated with testing processes. Additionally, AEHR benefits from strategic partnerships with major semiconductor manufacturers that enhance its market presence and facilitate the development of innovative testing solutions, further contributing to its financial growth.

Aehr Test Systems Financial Statement Overview

Summary

Aehr Test Systems faces challenges with declining revenue and profitability, as reflected in negative margins and revenue growth. The balance sheet remains strong with low leverage, but recent losses impact return on equity. Cash flow issues are evident, although there is some improvement in free cash flow.

Income Statement

Aehr Test Systems has experienced declining revenue and profitability in the TTM period. The gross profit margin remains stable, but the net profit margin is negative, indicating losses. The EBIT and EBITDA margins have also turned negative, reflecting operational challenges. Revenue growth has been negative, showing a contraction in sales.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative in the TTM period, reflecting recent losses. The equity ratio is strong, suggesting a solid capital structure, but the recent performance raises concerns about profitability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows in the TTM period, although there is a positive free cash flow growth rate. The operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is positive, suggesting some efficiency in cash management despite losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	56.82M	58.97M	66.22M	64.96M	50.83M	16.60M
Gross Profit	20.57M	23.93M	32.54M	32.75M	23.66M	6.03M
EBITDA	-4.20M	-903.00K	13.82M	15.07M	9.85M	-1.85M
Net Income	-6.65M	-3.91M	33.16M	14.56M	9.45M	-2.03M
Balance Sheet
Total Assets	144.09M	148.51M	127.91M	98.14M	62.33M	21.66M
Cash, Cash Equivalents and Short-Term Investments	22.71M	25.23M	49.16M	47.91M	31.48M	4.58M
Total Debt	10.62M	10.83M	6.20M	6.30M	1.01M	4.82M
Total Liabilities	21.70M	25.64M	16.32M	22.54M	11.34M	10.22M
Stockholders Equity	122.39M	122.87M	111.59M	75.60M	50.99M	11.45M
Cash Flow
Free Cash Flow	-16.03M	-12.39M	1.01M	8.65M	1.09M	-2.93M
Operating Cash Flow	-9.85M	-7.40M	1.76M	10.01M	1.51M	-2.70M
Investing Cash Flow	-6.65M	-16.07M	17.25M	-18.66M	-416.00K	-227.00K
Financing Cash Flow	573.00K	625.00K	139.00K	7.32M	25.76M	1.96M

Aehr Test Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEHR, the sentiment is Positive. The current price of 24.76 is above the 20-day moving average (MA) of 22.16, below the 50-day MA of 25.34, and above the 200-day MA of 16.80, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 85.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEHR.

Aehr Test Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COHU	56 Neutral	$1.07B	―	-8.53%	―	-4.50%	-45.79%
AEHR	53 Neutral	$676.05M	―	-5.43%	―	-3.23%	-122.16%
ICHR	49 Neutral	$568.72M	―	-5.94%	―	16.86%	-26.89%
INDI	49 Neutral	$841.19M	―	-34.90%	―	-4.99%	-12.11%
AOSL	48 Neutral	$601.23M	―	-11.17%	―	5.81%	-376.55%
UCTT	45 Neutral	$1.17B	―	-20.61%	―	6.65%	-4652.36%

Aehr Test Systems Corporate Events

Aehr Test Systems Approves Amendments to Stock Plans

On October 20, 2025, Aehr Test Systems‘ stockholders approved amendments to the 2006 Employee Stock Purchase Plan and the 2023 Equity Incentive Plan during the company’s annual meeting. These amendments are expected to impact the company’s employee compensation structure, potentially enhancing its ability to attract and retain talent in the competitive semiconductor industry.

The most recent analyst rating on (AEHR) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Aehr Test Systems stock, see the AEHR Stock Forecast page.

Aehr Test Systems Approves Key Proposals at Annual Meeting

Aehr Test Systems held its Annual Meeting of shareholders on October 20, 2025, where several key proposals were voted on and approved. These included the election of directors, amendments to the company’s equity incentive and employee stock purchase plans, ratification of BPM LLP as the independent auditor, and advisory votes on executive compensation. The decisions made at the meeting reflect the company’s ongoing governance and operational strategies, impacting its stakeholders by ensuring continued alignment with shareholder interests and regulatory compliance.

The most recent analyst rating on (AEHR) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on Aehr Test Systems stock, see the AEHR Stock Forecast page.

Aehr Test Systems’ Earnings Call: Mixed Sentiments and Future Prospects

The recent earnings call for Aehr Test Systems presented a mixed sentiment, reflecting both positive achievements and notable challenges. The company exceeded analyst expectations for revenue and profit, expanded its wafer level burn-in systems, and increased its manufacturing capacity. However, it also faced hurdles such as lower gross margins, tariff-related uncertainties, and delays in flash memory burn-in benchmarks.

Aehr Test Systems Reports Q1 Fiscal 2026 Results

Aehr Test Systems is a global provider of semiconductor test and burn-in equipment, catering to various sectors including AI processors, electric vehicles, and telecommunications. The company has established itself as a leader in the semiconductor testing industry with innovative solutions like the FOX-P and Sonoma systems.