Key Highlights

  • AEHR shares were trading up 24.64% at $64.15 from a prior close of $51.47.
  • Fiscal first-quarter Revenue was a record $33.0 million, up 200% year over year.
  • Fiscal 2027 revenue outlook was raised to $150 million.

Aehr Test Systems (NASDAQ:AEHR) was trading up 24.64% at $64.15 in today's regular session, a gain of $12.68 from the prior close of $51.47, on Volume of about 6.9 million shares against an average near 2.6 million. The company reported record fiscal first-quarter 2027 results and raised its revenue outlook for the year to $150 million, triple fiscal 2026.

Aehr, based in Fremont, California and founded in 1977, makes test and burn-in systems that screen semiconductors for early-life failures at the wafer, singulated die and packaged-part levels. Its FOX-XP, FOX-NP and FOX-CP platforms, with WaferPak Contactor and DiePak Carrier consumables, serve AI processors, silicon photonics, silicon carbide and gallium nitride power devices, memory, and automotive and Data Center applications. The Incal Technology Acquisition added the Sonoma packaged-part burn-in line. Aehr has 138 employees.

First-Quarter Numbers

Revenue was $33.0 million, up 200% year over year and 75% sequentially, against an estimate of $27.5 million. Non-GAAP Net Income was $9.4 million, or $0.28 per share, against about $0.11 expected. Non-GAAP gross Margin was 48.5% and non-GAAP operating expenses were $7.8 million, up 36% year over year. Cash was $105.1 million with no debt.

Bookings were $46.7 million for a book-to-bill ratio of 1.4. Quarter-end Backlog was $100.9 million and effective backlog was $109.3 million as of November 1, a figure management said conflicted with the $193.3 million discussed on the call. Consumables were 41% of first-quarter revenue and are expected to be about 35% of fiscal 2027 revenue, with a range up to 50%.

Guidance, AI Customer Orders and Sonoma Shipments

Fiscal 2027 revenue guidance rose to $150 million from a prior range of $130 million to $150 million, with non-GAAP net income of at least 20% of revenue and gross margin near 48.5%. Revenue is expected to rise each quarter, with the second quarter led by Sonoma deliveries and the fourth quarter the highest. The guide is conservative, since about $7 million of additional orders would be needed to reach it.

A major AI accelerator, CPU and network processor supplier is buying a full XP wafer-level burn-in cell for a Taiwan OSAT, with installation in early calendar 2027 and a production decision expected within a few months. Each million units per year requires five to ten nine-wafer systems, or roughly $35 million to $70 million of revenue. Lead AI customer follow-on orders include a $22 million order. Sonoma burn-in is shipping more than a dozen systems per month to the lead hyperscale customer, and a new Southeast Asia contract manufacturer adds capacity for more than 20 systems per month. Silicon carbide was about 10% of fiscal 2026 revenue.

Analyst Targets and Risks on the Table

Jefferies cut its target to $140 from $175 and Lake Street cut to $90 from $110, with both keeping Buy ratings. The stock is recovering from a drawdown of about 60% from its August highs and has a 52-week range of $18.70 to $147.40. Risks include a pending production decision at the benchmark customer, a roughly 30-day installation slip, cash use and lower second-quarter margins from Sonoma mix.

The Benchmark Customer Production Decision Is the Next Marker

Aehr is trading sharply higher on record revenue, a larger backlog and a raised outlook. The next items to follow are the production decision at the benchmark AI customer, the early-2027 installation at the Taiwan OSAT and second-quarter Sonoma deliveries.