Aehr Test Systems soared by 27.86 percent on Tuesday to end at $98.91 apiece, as investors resorted to bargain-hunting after falling to the $75 level the previous day, while drawing encouragement from the flurry of AI expansion news that spilled over to industries riding the boom.
Threefold Revenue Growth Outlook Despite Higher Losses
Aehr Test Systems Inc.’s (NASDAQ:AEHR) jump was also supported by its upbeat growth guidance for fiscal year 2027, with revenues expected to grow by 160 to 200 percent to a range of $130 million to $150 million, versus the $50 million posted last year, thanks to a $100 million effective backlog.
The guidance overshadowed its weak performance in the full fiscal year of 2026, with net losses wider by 82 percent to $7.1 million versus $3.9 million in fiscal year 2025.
The full-year loss primarily reflected higher losses in the first three quarters of the year, which more than offset the strong recovery in the fourth quarter.
Additionally, revenues declined by 15 percent during the period to $50 million from $59 million year-on-year.
For illustration purposes only. Photo from Pixabay/Pexels
Q4 Profits Exceed Expectations
In the fourth quarter alone, Aehr Test Systems Inc. (NASDAQ:AEHR) said that it swung to a net income of $1.4 million from a $2.9 million net loss in the same period last year, exceeding earlier expectations thanks to a 33-percent surge in revenues at $18.8 million versus $14.1 million year-on-year.
Bookings also stood at a record of $60.7 million, while backlogs ended at $80.6 million.
Aehr Test Systems (NASDAQ:AEHR) President and CEO Gayn Erickson said that they were pleased with the results, “which exceeded expectations and capped a year of significant bookings and revenue diversification for Aehr.”
“[Our] record quarterly bookings, a very strong backlog, and growing demand across AI processors, silicon photonics, and power semiconductors for our wafer-level and package-level burn-in solutions position us well for significant growth moving forward,” he said.
Institutional Participation
More institutional investors appeared upbeat about the firm’s growth prospects.
According to Insider Monkey’s database, 25 hedge funds held positions in Aehr Test Systems (NASDAQ:AEHR) as of the end of the first quarter of the year, a marked increase from 17 in the quarter prior.
Collectively, the funds own approximately a $60.9 million stake in the semiconductor testing firm, versus only $31.47 million quarter-on-quarter, signaling that professional investors have been increasing their exposure ahead of what management expects to be a significant recovery.
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