Aehr Test (AEHR) Makes Easy 26% Gain on Swing to Profits

Aehr Test Systems (NASDAQ:AEHR) snapped a three-day losing streak on Tuesday, soaring 26.5 percent to close at $65.11 after reporting a stellar earnings performance in the first quarter of fiscal year 2027, thanks to strong demand from AI.

In an updated report, the semiconductor testing giant said that it swung to a net income of $7.18 million from a $2.08 million net loss in the same period last year,  as revenues tripled to $33 million from $10.97 million year-on-year.

“Our fiscal first quarter results demonstrate the accelerating demand for our AI semiconductor test and burn-in solutions and our ability to execute against expanding customer production requirements. Revenue increased 200% year over year and 75% sequentially to a record $33 million, while bookings of $46.7 million exceeded revenue by over 40%, reflecting continued strong demand for our wafer-level and package-level burn-in solutions,” Aehr Test Systems President and CEO Gayn Erickson said.

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200% Revenue Jump YoY

Encouraged by the results, the company is now projecting revenues to further grow by 200 percent in the full fiscal year to $150 million, or a jump from its previous guidance of $130 million to $150 million.

Revenues are expected to account for at least 20 percent of its non-GAAP net income for the same period.

Accelerating Product Demand

According to Aehr Test Systems, it continues to see strong demand for its products, with one of its leading AI processor WLBI production customers expanding capacity with a new $22 million order placed last August.

It also bagged a new order from a major supplier of AI accelerators, CPUs, and network processors for its fully configured FOX-XP WLBI test cell, for installation at one of its key Outsourced Semiconductor Assembly and Test (OSAT) partners in Taiwan.

“We believe this customer represents one of the largest potential burn-in system opportunities Aehr has ever pursued, with significant potential across multiple product lines and manufacturing locations,” Aehr Test Systems said.

Hedge Fund Holdings Rocket Nearly Eightfold

Institutional investors were bullish about Aehr Test Systems’s long-term growth prospects, as evidenced by the whopping jump in its quarter-on-quarter hedge fund holdings.

Data from Insider Monkey showed that 34 hedge funds held positions in the stock in the second quarter of the year, up from 25 in the first quarter of the year. More notably, their combined holdings soared by 678 percent to $473.97 million from $60.9 million in the same comparable period.

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