Shares of a mid-cap company that develops chip-testing solutions have skyrocketed. Why?
Aehr Test Systems' stock price surged following a strong earnings report and positive outlook / Photo: Aehr Test Systems
Shares of Aehr Test Systems, a mid-cap developer of semiconductor testing and validation solutions, soared more than 30% in premarket trading on July 15, continuing the rally that began the previous day. The company reported financial results that exceeded Wall Street’s expectations and shared an optimistic outlook for fiscal year 2027.
Details
Aehr Test Systems shares rose 30% to $93.75 in the first few minutes of morning trading on July 15. This continued the rally that began the previous day—on Tuesday, the company’s shares jumped nearly 6% to $72.
The company reported that in the fourth quarter of fiscal year 2026, which ended on May 29, its net revenue increased 33% year-over-year to $18.8 million. Adjusted net earnings per share for the reporting period were $0.11, compared with a loss of $0.01 for the same period of fiscal year 2025.
Wall Street expected Aehr to report a loss of $0.01 per share on revenue of $18.7 million, according to Barron’s.
At the end of the fiscal year, the company’s order backlog stood at $80.6 million, and $100.6 million when including orders placed after May 29, 2026, according to the press release.
This allows Aehr to expect revenue growth in the new fiscal year, which ends on June 25, 2027, of 2.6 to 3 times, to between $130 million and $150 million, as noted in the same source.
The forecast is based on both the current order backlog and expectations of increased demand from customers operating in the fields of artificial intelligence processors, silicon photonics, and power semiconductors, the company states, citing its President and CEO, Gain Ericsson. Among other things, the company’s solutions enable the testing of defects in logic, memory, photonic, and power chips used in semiconductor wafers prior to final integration into the package.
What Analysts Are Saying
Since the beginning of the year, Aehr’s stock price has soared by nearly 257%. However, Wall Street sees further upside potential. The company’s stock has four “buy” recommendations from analysts and one “hold” recommendation. The average price target of $81 is 12.5% higher than the stock’s closing price on July 14.
