Aehr Test Systems (AEHR) AI Stock Analysis
AEHR AI stock analysis summary
AI ResearchAehr Test Systems is a semiconductor test equipment provider with a market capitalization of $1.98B. Despite annual revenue declining 15.2% to $50.0M in FY2026, the stock returned 126.9% over the past year. The company maintains a strong net cash balance of $106.5M while trading at a forward P/E of 126.6x.
- Market cap
- $1.98B
- Revenue (TTM)
- $50.0M
- P/E
- — fwd 126.6x
- 1Y return
- 126.9% S&P 500 16.8%
- Avg. target
- $128.00 111.2% vs last close
Bull case
- Aehr holds $116.4M in cash and short-term investments with just $9.9M in total debt, creating a net cash position of $106.5M.
- Quarterly revenue grew 33.7% year-over-year in the latest quarter ended May 31, 2026.
- Analysts project FY2027 revenue to reach $136.3M with an EPS estimate of $0.75, implying 2400.0% EPS growth.
Bear case
- Annual revenue dropped 15.2% in FY2026 to $50.0M, marking a second consecutive year of top-line contraction.
- Operating margin turned negative to -28.3% in FY2026, generating a net loss of -$7.1M.
- The company burned cash in FY2026, producing free cash flow of -$5.4M compared to -$12.4M in FY2025.
What Aehr Test Systems does
Aehr Test Systems specializes in providing advanced test systems for burning-in semiconductor devices across global markets. Its product portfolio includes the ABTS system for packaged parts testing and the FOX-XP and FOX-NP systems for full wafer contact and singulated die test and burn-in. These platforms support complex devices including silicon carbide-based power semiconductors, memory, digital signal processors, microprocessors, and integrated optical devices. Aehr also offers the FOX-CP system, the FOX WaferPak Aligner, FOX WaferPak Contactors supporting wafers up to 300mm, as well as FOX DiePak Carriers and Loaders for bare die testing.
Growth and profitability
Aehr Test Systems reported FY2026 revenue of $50.0M, down 15.2% following a 10.9% decrease in FY2025 from its peak of $66.2M in FY2024. Gross margin compressed to 35.3% in FY2026 from 40.6% in FY2025 and 49.1% in FY2024. Operating margin fell to -28.3%, and net income was -$7.1M with an EPS of -$0.03. For the trailing twelve months, revenue stands at $50.0M with an operating margin of -6.4% and an EPS of -$0.23. However, in the latest quarter ended May 31, 2026, quarterly revenue grew 33.7% year-over-year, while quarterly earnings fell 87.5%.
Balance sheet and cash flow
Aehr Test Systems closed FY2026 on May 31, 2026, with $116.4M in cash and short-term investments against $9.9M in total debt, yielding net cash of $106.5M. The current ratio stands at 10.33, and debt-to-equity is 0.05. In FY2026, operating cash flow was -$3.3M and free cash flow was -$5.4M. Capital expenditures were $2.1M, while share buybacks totaled $2.4M. Over the past 5 years, the share count increased by 8.2%.
Valuation and performance
At $60.60, Aehr Test Systems trades at an enterprise value of $3.08B and a forward P/E of 126.6x, compared to the median of 18.8x for its US-listed Technology peers. Its price-to-sales ratio of 39.6x and EV-to-EBITDA of 29.8x also sit above the US-listed Technology peer medians of 2.8x and 16.6x, respectively. The stock's PEG ratio is 0.92. Over the past year, AEHR gained 126.9%, outperforming the S&P 500 ETF (SPY) return of 16.8%, though it is down 16.5% versus its 200-day average.
What analysts expect
Consensus coverage shows 6 Strong Buy ratings, with zero Buy, Hold, Sell, or Strong Sell recommendations. The mean price target is $128.00, representing 111.2% upside compared to the last close of $60.60. For the fiscal year ending May 31, 2027, analysts estimate revenue of $136.3M and EPS of $0.75, representing projected EPS growth of 2400.0%. Over the last 4 quarters, the company has beaten EPS expectations 2 times.
Key risks and what to watch
- The stock has a beta of 3.48, signaling high price volatility relative to the broader market.
- Short interest stands at 16.8% of float, reflecting elevated negative positioning.
- Valuation multiples are high, with a forward P/E of 126.6x and price-to-sales of 39.6x.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this AEHR AI stock analysis
This page is an AI-written research summary of Aehr Test Systems (AEHR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: AEHR income statement, AEHR balance sheet, AEHR key metrics, AEHR analyst forecast, AEHR chart. See the AEHR stock overview for the latest quote and news.
AEHR AI stock analysis FAQ
Does Aehr Test Systems pay a dividend?
Aehr Test Systems does not pay a dividend. Capital in FY2026 was allocated to $2.1M in capital expenditures and $2.4M in share buybacks.
What is the consensus analyst target for AEHR stock?
The mean analyst price target is $128.00, which is 111.2% above the October 16, 2026 closing price of $60.60. All 6 covering analysts rate the stock a Strong Buy.
What was AEHR's revenue and earnings performance in FY2026?
In FY2026, revenue fell 15.2% to $50.0M. The company reported a net loss of -$7.1M and diluted EPS of -$0.03, alongside an operating margin of -28.3%.
How strong is Aehr Test Systems' balance sheet?
Aehr has a strong liquidity profile, with $116.4M in cash and short-term investments and $9.9M in total debt as of May 31, 2026. This translates to a current ratio of 10.33 and a debt-to-equity ratio of 0.05.