Aehr Test Systems (AEHR) Stock: Revenue Dip Overshadowed by Explosive AI and HPC Booking Outlook

TLDR

• Revenue dipped, but AI and HPC demand strengthened bookings and future growth visibility
• Losses widened short term as Aehr invested in AI, HPC, and advanced test platforms
• Backlog and effective backlog expanded, signaling stronger customer commitments ahead
• Cash levels improved, supporting long-cycle AI programs and product development
• Diversification beyond silicon carbide broadens markets and supports FY27 momentum

Test Systems reported weaker quarterly revenue while outlining a sharply stronger booking outlook tied to AI and HPC demand. The company posted higher losses but expanded backlog, cash levels, and customer engagement. As a result, forward visibility improved despite short-term financial pressure.

Revenue Decline Reflects Transition Phase, While Liquidity Strengthens

Aehr Test Systems recorded second quarter fiscal 2026 revenue of $9.9 million, reflecting slower customer ordering patterns. The company increased total cash, cash equivalents and restricted cash to $31.0 million. This increase supported ongoing product development and expanding customer programs across multiple semiconductor markets.

The company reported a GAAP net loss of $3.2 million for the quarter. Non-GAAP results also reflected a loss as operating leverage softened with lower revenue. Nevertheless, management continued investments aligned with longer-cycle AI and HPC programs.

For the first six months, revenue reached $20.9 million, reflecting year-over-year contraction. Operating cash usage remained limited at $1.5 million. Therefore, the balance sheet remained positioned to support growth initiatives and customer scaling efforts.

AI And HPC Demand Drives Booking Momentum And Backlog Expansion

Quarterly bookings reached $6.2 million, while backlog stood at $11.8 million at quarter end. Effective backlog expanded to $18.3 million after subsequent bookings. This expansion reflected improving customer forecasts entering the fiscal second half.

Management projected second half fiscal 2026 bookings between $60 million and $80 million. These expectations reflected expanding AI processor programs and advanced wafer-level testing demand. Consequently, the company anticipated a strong setup for fiscal 2027 growth.

Aehr advanced wafer-level burn-in programs for AI processors and high-performance computing devices. Several customers expanded capacity planning and requested additional system evaluations. These engagements supported longer-term revenue conversion beyond the current fiscal year.

Product Diversification Expands Addressable Markets Beyond Silicon Carbide

The company accelerated progress in packaged-part burn-in systems, particularly for high-power AI processors. Orders for Sonoma ultra-high-power systems exceeded second quarter totals early in the third quarter. This trend highlighted rising demand for package-level reliability testing.

Aehr also advanced programs in silicon photonics, memory, and power semiconductors. Production ramps for silicon photonics aligned with data center and optical communication roadmaps. These developments broadened revenue sources beyond recent silicon carbide concentration.

Management reinstated guidance for the second half of fiscal 2026. Revenue is expected between $25 million and $30 million. Non-GAAP net loss per diluted share is projected between $0.09 and $0.05, reflecting continued investment during expansion.

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