Shares in Aehr Test Systems Inc. (NASDAQ:AEHR) jumped by 11.6 percent week-on-week, as investors increased their exposure after management posted a highly optimistic outlook for fiscal year 2027, thanks to the continued strong demand for semiconductor testing.
In an updated report last week, the company said that it is targeting to grow its revenues during the period by 160 to 200 percent to a range of $130 million to $150 million, versus the $50 million posted last year, supported by a $100 million effective backlog.
For illustration purposes only. Photo by Sergei Starostin on Pexels
Investors Look Past Wider Losses
The upbeat 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 similarly declined by 15 percent during the period to $50 million versus $59 million year-on-year.
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.
More Hedge Funds Buy In
More institutional investors appear to be 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, signaling that professional investors have been increasing their exposure ahead of what management expects to be a significant recovery.
Year-to-date, shares in Aehr Test Systems (NASDAQ:AEHR) have already surged by 301.44 percent, and further by 423.58 percent in the past 52 weeks.
Headquartered in Fremont, California, Aehr Test Systems (NASDAQ:AEHR) is a leading provider of test solutions for testing, burning in, and stabilizing semiconductor devices in wafer level, singulated die, and package part form. It aims to ensure quality, reliability, and safety of semiconductors used across multiple industries, including electric vehicles, charging infrastructure, solar and wind power, computing, data, and telecommunications, among others.
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