Aehr Test Systems (AEHR) - Stock Analysis
Last updated: Jan 18, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Record Q3 revenues with strong AI/data center product demand, production capacity expansion, institutional buying, and improving gross margins underpin short-term growth, although unprofitability and technical price volatility suggest cautious optimism.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Strong liquidity ⢠Shrinking margin ⢠High inventory AEHR has materially stronger liquidity and lower leverage with improving cash flows, but persistent operating losses, a sharply contracted gross margin and oversized inventory versus sales threaten near-term profitability and working-capital conversion.
Price Behavior
Key Price Behavior Insights: ⢠Clear uptrend ⢠Solid base ⢠Short-term risk Support Level: $22.50 Resistance Level: $28.81 AEHR climbed from about $22.77 to $28.81 over the last month, forming support near $22.50 and showing bullish momentum but likely nearing overbought levels that could prompt a short-term pullback.
Sentiment & News
Key News Insights: ⢠AI-driven bookings ⢠Margin pressure ⢠Operational delays Aehr reported Q2 revenue down 27% to $9.9M with margin pressure and missed sales, but strong AI-driven bookings projected at $60â80M and a $5.5M Sonoma order buoyed sentiment despite operational delays and cautious guidance.
AI Summary
AEHR is now a binary, qualificationâdriven AI test-equipment growth storyâits valuation hinges on converting Sonoma/FOX XP evaluations into multiâquarter production orders (the cited $60â$80M range) while oversized inventory, margin compression and concentrated customer timing make execution/timing the single biggest downside risk.
Description
Aehr Test Systems designs and supplies test and burn-in equipment for logic, memory and optical integrated circuits, supporting both wafer-level and packaged-device verification. Its product set includes systems and handling solutions that enable full-wafer contact testing, singulated die and module burn-in, and compact single-wafer reliability checks across a range of device types and power levels. The company was incorporated in 1977 and is based in Fremont, California.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Dec 17 | Dec 24 | AEHR | Aehr Test Systems | Record Q3 revenues with strong AI/data center product demand, production capacity expansion, institutional buying, and improving gross margins underpin short-term growth, although unprofitability and technical price volatility suggest cautious optimism. | Closed | +2.7% |