Aehr Test Systems (AEHR) Stock Soars 27% on Massive Bookings Inflection and AI Orders

Key Takeaways

• Aehr delivered a Q3 loss of $0.05 per share, surpassing analyst expectations of -$0.07, though revenue of $10.3M fell short of the $10.8M consensus
• Bookings for the quarter surged to $37.2M with a book-to-bill ratio exceeding 3.5x, a dramatic increase from the prior quarter’s $6.2M
• The company’s effective backlog climbed to a record $50.9M after incorporating $12.2M in new orders during the first five weeks of Q4
• Management now anticipates fiscal 2026 revenue at the upper end of its $45M–$50M guidance band
• Analysts responded positively: Lake Street Capital lifted its target to $56 from $50; William Blair reaffirmed its Outperform rating

Aehr Test Systems delivered a fiscal third quarter that appeared mixed at first glance — yet investors looked beyond the revenue shortfall and focused squarely on the dramatic surge in new orders.

Aehr Test Systems, AEHR

Third-quarter revenue registered at $10.3 million, representing a 44% decline from the year-ago period and slightly missing the $10.8M Street estimate. The semiconductor testing equipment maker recorded a non-GAAP net loss of $1.5 million. However, the per-share loss of $0.05 outperformed Wall Street’s -$0.07 projection by two cents.

The headline-grabbing metric was bookings. The company secured $37.2 million in new orders during Q3, a substantial leap from the previous quarter’s $6.2 million. The resulting book-to-bill ratio exceeded 3.5x — an indicator that points to robust future revenue conversion.

The backlog at the end of the quarter totaled $38.7 million. When accounting for an additional $12.2 million in orders received during the initial five weeks of the fourth quarter, the effective backlog reached an all-time high of $50.9 million. Leadership now anticipates achieving the upper boundary of its $60M–$80M second-half bookings forecast.

Artificial Intelligence and Silicon Photonics Drive Demand

A fresh silicon photonics customer submitted an initial order for multiple FOX-XP systems aimed at the hyperscale data center optical interconnect sector. These systems are slated for delivery during fiscal Q4, which concludes on May 29, 2026.

Aehr’s primary silicon photonics client also submitted a follow-on purchase for a new high-power FOX-XP WaferPak system along with an upgrade to its current configuration.

Within the power semiconductor arena, a newly acquired silicon carbide customer based in Taiwan — targeting the Greater China electric vehicle market — ordered a FOX-XP system for both qualification and production purposes. Erickson mentioned observing an “uptick in activity” from silicon carbide manufacturers but emphasized that Aehr isn’t yet projecting substantial revenue from this vertical.

Memory Opportunity and Fiscal 2026 Projections

The memory sector represents a longer-term growth avenue. Aehr is currently engaged in discussions with a major supplier regarding specifications for next-generation high-bandwidth flash memory, with a potential development partnership expected to finalize in the upcoming months. Such an agreement could initiate a 12–18 month development timeline, potentially leading to order acceleration in fiscal 2028.

For the complete fiscal year, Aehr maintained its FY2026 revenue guidance of $45M–$50M and now projects landing at the higher end of this range. The company also activated its full $40 million at-the-market equity facility and concluded Q3 with $37.1 million in cash reserves.

Lake Street Capital elevated its price target to $56 while maintaining its Buy recommendation, characterizing the bookings surge as the “headline story.” William Blair analyst Jed Dorsheimer, who maintains an Outperform rating, indicated that additional customer announcements are “inbound.”

AEHR shares entered Wednesday trading up 35% for April and more than 140% year-to-date, according to Dow Jones Market Data.

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