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Additional Reading from MarketBeat Media Small Cap Spike: Semi Stock AEHR Up +40% in 2026 Post-EarningsSubmitted by Leo Miller. Article Posted: 1/21/2026. 
Quick Look - Aehr Test Systems has soared in the first weeks of 2026, with the catalyst being the firm's latest earnings.
- While the EV market puts pressure on sales, the company is seeing strong momentum in AI-driven demand.
- Aehr's opportunity is large, but uncertainty and a high valuation still cloud the stock's outlook.
For shares of Aehr Test Systems (NASDAQ: AEHR), it's hard to imagine a hotter start to 2026. As of the Jan. 20 close, the stock is up about 44% year to date. The Jan. 8 earnings release sent mixed signals but helped the stock jump 16% the following day. With revenues down but millions in new artificial intelligence (AI) orders coming in, what does the future hold for the semiconductor stock? AEHR’s Earnings: Revenues Fall, But Booking Projections Look Strong The former CEO of Google calls it the most important thing to happen in 500, maybe 1,000 years of human society. A former U.S. Treasury Secretary says when your great-grandchildren write the history of this period, the political headlines will be the second or third story. The first story is something none of us have seen before. The dot-com collapse, global financial crisis, and COVID-19 pandemic don't compare to what's coming next. We may be entering a period of dramatic, almost unimaginable change. See the full warning and how to prepare now. On Jan. 8, Aehr reported its Q2 fiscal 2026 (FY2026) earnings. (Aehr's fiscal period runs ahead of the calendar year.) The results were mixed: revenue was $9.9 million, down 27% year-over-year and well below analysts' $11.5 million estimate. However, adjusted loss per share was narrower than expected — a loss of $0.04 versus the $0.08 analysts had projected. The company posted an adjusted net loss of $1.3 million, compared with net income of about $700,000 a year earlier. Notably, its effective backlog rose from $17.5 million in the prior quarter to $18.3 million. Despite the revenue decline, management's guidance provided a bright spot. For the next two quarters combined, Aehr expects revenue of $25 million to $30 million, versus $32.3 million in the back half of fiscal 2025. Management also projects bookings of $60 million to $80 million during this period; those bookings could translate into sizable revenue in fiscal 2027. If bookings convert into FY2027 revenue as anticipated, Aehr would be back on a growth trajectory. Based on company guidance, total revenue for FY2026 should be between $46 million and $51 million. The expectation of recovery is largely tied to Aehr's expanding footprint in the artificial intelligence market. AI Optimism Fuels AEHR as SiC Takes a Backseat Aehr said on Jan. 8 that it received over $5.5 million in additional orders for its Sonoma systems, drawn from multiple "leading-edge AI companies." Sonoma demand appears to be accelerating — less than halfway through fiscal Q3, Aehr has already received more orders than in all of fiscal Q2. While Sonoma and AI-driven demand are clear growth drivers, they don't yet offset why the company's revenue is still declining. Earlier, Aehr benefited from strong demand in the electric vehicle market. Customers used its FOX-P family to stress-test power chips built on silicon carbide (SiC), which helped drive revenue growth from 2021 through 2023. SiC-based devices offer advantages over incumbent EV power-chip technologies, including the potential to extend EV range by 5% to 10% and substantially reduce charging time. Aehr believes many EV makers will shift toward SiC over time. But recent slowing growth in the EV market has weakened SiC demand. Because SiC was previously Aehr's largest revenue driver and AI-related revenue is still relatively small, overall sales have dropped. Accordingly, Aehr says the bulk of its expected bookings are AI-driven and attributes "not very much at all" to SiC. Management expects initial AI customers to expand orders meaningfully in 2027 and 2028. The company estimates the AI test-and-burn-in market is currently $8 billion to $10 billion and could reach $15 billion — a market far larger than Aehr's current revenue and bookings, indicating major upside potential if it captures share. AEHR: Real AI Upside, But Still an Unproven Player Aehr's outlook improved after the latest updates. Still, based on FY2027 estimates the stock trades at more than 12 times forward sales, which is not inexpensive. Further momentum in the AI business over the coming quarters could materially raise sales estimates, but there is no certainty that demand will materialize or that Aehr will meet expectations. The stock offers meaningful upside potential, but it also carries substantial execution and market risks.
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