Aehr Test Systems climbed by 21.91 percent on Wednesday to close at $87.79 apiece, after management projected a sharp acceleration in its full-year growth for fiscal 2027, underpinned by a record backlog and the continued strong demand for semiconductor testing solutions in AI infrastructure.
In an earnings call on Tuesday, the company said that it was optimistic about growing its revenues by 160 percent to 200 percent to a range of $130 million to $150 million, versus the $50 million last year.
For illustration purposes only. Photo from Pixabay/Pexels
The guidance was supported by an effective backlog of $100 million, providing investors with greater visibility into future revenues.
FY26 Still in the Red
The aggressive outlook helped investors look beyond the company’s weak earnings performance in the full fiscal year 2026, betting that its backlog and increasing AI exposure could mark the beginning of a new growth cycle.
Aehr Test Systems (NASDAQ:AEHR) said that its net loss went 82 percent deeper during the period, ending at $7.1 million versus the $3.9 million last year.
Revenues were also lower by 15 percent at $50 million versus $59 million year-on-year.
Q4 Swings to Profits
However, the company swung to a net profit of $1.4 million in the fourth quarter of fiscal year 2026 from a net loss of $2.9 million in the same period last year, as revenues surged by 33 percent to $18.8 million from $14.1 million year-on-year.
Bookings finished at a record of $60.7 million, while backlogs ended at $80.6 million.
Effective backlog, including bookings since May 29, was at $100.6 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 are buying into shares of Aehr Test Systems (NASDAQ:AEHR).
Based on Insider Monkey’s database, 25 hedge funds held positions in the company as of the end of the first quarter of the year, up from 17 in the quarter prior.
Collectively, those funds own approximately $60.9 million worth of stake in the company, signaling that professional investors have been increasing their exposure ahead of what management expects to be a significant recovery.
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