AEHR stock explodes 40%: could it be a hidden winner of Nvidia’s AI boom?

Aehr Test Systems stock NASDAQ:AEHR surged more than 40% in extended trading on Tuesday after the semiconductor-equipment maker delivered stronger-than-expected earnings, record bookings and an aggressive growth forecast.

The gain later eased, with the stock trading nearly 28% higher at about $92 after closing the regular session at $72.01.

The larger story is Aehr’s rapid transformation from an equipment supplier heavily dependent on electric-vehicle chips into a specialised provider serving AI processors, hyperscale data centres and silicon photonics.

Aehr has not disclosed a direct commercial relationship with Nvidia, but its testing systems could benefit from the same infrastructure cycle driving demand for advanced AI chips.

Record bookings give the AEHR stock rally real support

Aehr reported fiscal fourth-quarter revenue of US$18.8 million (approx. $26.2 million), up from US$14.1 million (approx. $19.7 million) a year earlier and slightly above Wall Street’s US$18.7 million (approx. $26.1 million) estimate.

Adjusted earnings reached 11 cents per share, compared with expectations for a one-cent loss.

Bookings climbed to a record US$60.7 million (approx. $84.6 million). Backlog stood at US$80.6 million (approx. $112.4 million) at the end of May, while effective backlog, including orders received after the quarter ended, reached US$100.6 million (approx. $140.2 million).

The outlook supplied the biggest surprise.

Aehr expects fiscal 2027 revenue of US$130 million (approx. $181.2 million) to US$150 million (approx. $209.1 million), equivalent to growth of about 160% to 200% from the US$50 million (approx. $69.7 million) generated in fiscal 2026. Management also forecast adjusted net income equal to 18% to 22% of revenue.

Lake Street Capital Markets had already identified Aehr’s order momentum as the central investment story.

After the previous quarterly report, the firm raised its price target to $56 from $50 and maintained a Buy rating.

Analysts said the “headline story this quarter was the bookings inflection.”.The latest record figure suggests that improvement continued into the fourth quarter.

Those older valuation targets have now been overtaken by the share price; however, this raises the bar for future execution.

Why Aehr could benefit from the Nvidia-led AI boom

Aehr does not design GPUs or compete with Nvidia.

Its equipment tests and “burns in” processors under high temperatures and demanding electrical conditions, helping manufacturers identify defective components before expensive chips are installed in data centres.

Its Sonoma systems are designed for packaged AI accelerators, GPUs and high-performance computing processors.

Aehr’s FOX equipment can test chips while they remain part of a semiconductor wafer, potentially identifying failures earlier in production.

The company also sells equipment for silicon-photonics components, which use light to move data rapidly between processors, switches and servers.

Faster optical connections are becoming increasingly important as AI clusters grow larger.

Management expects AI processors to generate about 70% of fiscal 2027 revenue, with silicon photonics contributing another 15% to 20%. Potential revenue from memory testing is not included in the forecast.

The shift has been dramatic. Chief executive Gayn Erickson said on the earnings call that more than 95% of Aehr’s business was linked to silicon-carbide chips for electric vehicles two years ago.

Almost 95% of fiscal 2026 revenue came from other markets.

William Blair analyst Jed Dorsheimer upgraded Aehr to Outperform in March after the company secured several package- and wafer-level AI design wins.

William Blair estimates that the market for AI-processor burn-in equipment could reach US$1.5 billion (approx. $2.1 billion) to US$2.3 billion (approx. $3.2 billion) by 2030.