Aehr Test Systems Surges on AI Chip Testing Orders from Major Hyperscaler

Why Is Aehr Test Systems Stock Skyrocketing Monday? - Aehr Test System (NASDAQ:AEHR)

Aehr Test Systems AEHR said Monday it received additional orders for six Sonoma packaged part burn-in systems from a major hyperscaler building artificial intelligence processors, and its stock surged on the news. The systems will ship from Aehr's Fremont, California, facility over the next two quarters. Investors pushed the stock up after the announcement, reflecting confidence in continued demand for Aehr's test equipment. The latest order comes just weeks after a similar purchase, underscoring the accelerating adoption of the company's technology. The customer, identified only as one of the world's largest cloud providers, will use the systems to test AI chips designed for massive-scale workloads. CEO Gayn Erickson said the commitment highlights the value of Aehr's high-power solutions and confirmed the company is already engaged with the hyperscaler on future chip generations. Also Read: Enphase Just Raised The Stakes In Solar Security -- Rivals Beware Tech giants, including Microsoft Corp. MSFT, Amazon.com Inc. AMZN, Alphabet Inc.'s Google GOOGL GOOG, and Meta Platforms Inc. META, have been building their own AI processors to optimize workloads such as natural language processing and recommendation systems, while reducing reliance on outside semiconductor suppliers. Industry projections underscore the opportunity. According to Strategy and Stats Insider, the AI chip market, worth more than $60 billion in 2023, is expected to surpass $600 billion by 2032. Growth is being fueled by data centers, robotics, and autonomous vehicles, all of which demand highly reliable processors. Aehr's Sonoma systems are designed to streamline burn-in and reliability testing directly in package form. The systems provide per-device power delivery, liquid-cooled sockets, and advanced digital controls aimed at lowering costs, improving quality, and speeding time to market. Investor enthusiasm has also been lifted by broader momentum in AI hardware. As noted in Aehr, stock is trading higher, recent trading activity shows a growing appetite for smaller semiconductor equipment firms poised to benefit from the shift toward custom AI chips. Related ETFs: VanEck Semiconductor ETF SMH, and iShares Semiconductor ETF SOXX. Price Action: AEHR shares were trading higher by 33.04% to $24.08 at last check Monday. Read Next: Taiwan Semiconductor Acts Early To Dodge US Export Curbs, Drops Chinese Tools From Chip Plants Photo by Pavel Kapysh via Shutterstock AEHRAehr Test Systems$24.0032.6%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum87.96Growth23.73QualityN/AValue50.53Price TrendShortMediumLongOverviewAMDAdvanced Micro Devices Inc$165.61-1.28%AMZNAmazon.com Inc$228.24-0.26%GOOGAlphabet Inc$207.990.61%GOOGLAlphabet Inc$207.240.56%METAMeta Platforms Inc$751.49-0.44%MSFTMicrosoft Corp$505.02-0.44%NVDANVIDIA Corp$176.93-0.60%SMHVanEck Semiconductor ETF$292.83-0.28%SOXXiShares Semiconductor ETF$248.05-0.42%Market News and Data brought to you by Benzinga APIs

Why Is Aehr Test Systems Stock Surging Tuesday? - Aehr Test System (NASDAQ:AEHR)

Aehr Test Systems AEHR said Tuesday it received an evaluation order from a leading artificial intelligence chip supplier to test its wafer-level burn-in technology. The program will be conducted at the company's Fremont, California, facility using its FOX-XP production system. Stock surged after the announcement. The initiative includes a custom WaferPak contactor designed for high-power devices. It will compare wafer-level burn-in results to the supplier's existing production process. Aehr expects the evaluation to last three to six months. "We believe this represents a significant step forward in our engagement with this top-tier AI processor supplier," said Gayn Erickson, president and CEO of Aehr Test Systems. He added that while there is no guarantee of future production orders, the evaluation marks an important milestone for next-generation products. Also Read: AI Chip Boom Sends Aehr Stock Surging As Major Cloud Giant Places Big Test System Order Aehr said wafer-level screening allows defective chips to be identified before being packaged with high-bandwidth memory or other processors. The company said this process helps improve yields and reduce costs compared to traditional package-level testing. The FOX-XP system can process up to 18 wafers at once and has already been used on devices such as silicon carbide power semiconductors and photonics chips. Aehr said growing demand for high-performance processors in data centers and cloud computing underscores the need for reliable large-scale testing solutions. The order comes amid strong interest in AI hardware. Aehr shares recently surged after a major cloud giant placed a separate order for its test systems, highlighting momentum in the sector. Broader exposure to the sector is available through the VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX. Price Action: AEHR shares were trading higher by 8.58% to $26.70 premarket at last check Tuesday. Also Read: IBM-AMD Alliance Targets Drug Discovery, Climate Modeling With Quantum Supercomputers Photo by Pavel Kapysh via Shutterstock AEHRAehr Test Systems$26.628.26%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum87.38Growth23.64QualityN/AValue50.80Price TrendShortMediumLongOverviewSMHVanEck Semiconductor ETF$294.840.31%SOXXiShares Semiconductor ETF$249.390.35%Market News and Data brought to you by Benzinga APIs

Aehr Test Systems Stock Is Surging Tuesday: What's Fueling The Move? - Aehr Test System (NASDAQ:AEHR)

Aehr Test Systems AEHR shares are trading higher Tuesday after the company announced a purchase order from a leading AI processor supplier. What To Know: Aehr said it received an order for a wafer level burn-in application evaluation and correlation program from a supplier of AI processors. The paid evaluation includes a custom WaferPak wafer contactor and a production wafer level burn-in test program development and will take place at Aehr's test facility in California. "We previously reported during our last earnings call that this top-tier AI processor supplier asked us to move forward with an on-wafer burn-in evaluation using their devices, and we are pleased today to announce the receipt of a purchase order for this evaluation from them," said Gayn Erickson, president and CEO of Aehr Test Systems. Aehr will demonstrate production systems for wafer level burn-in and a custom designed WafterPak. The company will also demonstrate the production system's advanced thermal management capabilities, wafer temperature regulation and management capabilities across the full wafer. Aehr noted that the rapid adoption of AI across hyperscale datacenters, cloud providers, enterprise infrastructure and consumer applications is driving "exponential demand" for high-performance processors and accelerators. The evaluation is estimated to take approximately three to six months to complete. How To Buy AEHR Stock By now you're likely curious about how to participate in the market for Aehr Test Systems - be it to purchase shares, or even attempt to bet against the company. Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy "fractional shares," which allows you to own portions of stock without buying an entire share. If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to "go short" a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading - either way it allows you to profit off of the share price decline. AEHR Price Action: Aehr Test Systems shares were up 6.59% at $26.21 at the time of publication Tuesday, according to Benzinga Pro. Read Next: IBM-AMD Alliance Targets Drug Discovery, Climate Modeling With Quantum Supercomputers Photo: Pavel Kapysh/Shutterstock.com AEHRAehr Test Systems$25.895.29%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum87.38Growth23.64QualityN/AValue50.80Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Why Aehr Test Systems Rocketed Nearly 40% Today

The test and burn-in equipment maker got a follow-on order from an AI hyperscaler to test its own AI chips. Shares of semiconductor testing company Aehr Test Systems (AEHR 39.23%) have rocketed 37.5% on Monday as of 12:22 PM ET. Aehr makes test-and-burn-in equipment that enables chipmakers to "stress test" their semiconductors while the chips are still on the wafer or in a package, before the chips are built into completed systems. While Aehr's equipment has traditionally been used for chips in high-intensity applications like use in industry and electric vehicles (EVs), the huge heat dissipation needs of artificial intelligence (AI) chips has created a brand-new market for Aehr's equipment. Today, Aehr announced a follow-on order by a large AI hyperscaler, stoking AI-fueled enthusiasm for the stock. An unnamed hyperscaler buys six more test systems Today, Aehr issued a press release disclosing that its large AI hyperscaler customer put in an order for six additional Sonoma test systems. CEO Gayn Erickson said: We are very pleased that this leading hyperscaler has increased its forecast and placed additional volume production orders for our Sonoma systems so soon after last month's order. These orders demonstrate both the value of our ultra-high-power system for volume production burn-in of AI processors and the growing relationships we are building with customers at the forefront of the AI market. This customer is one of the premier large-scale data center providers developing its own AI processors, and they have already indicated plans to expand capacity for this initial device and add additional AI devices over the next year. We are also engaged with them on future generations of processors to ensure we can support their long-term production needs. Aehr first indicated AI chip companies were interested in its testing systems about a year ago, with the first order from a hyperscaler customer for its in-house AI chips coming last September. Despite some lackluster financials since then, the EV market remaining in a slump, it looks as though this AI hyperscaler customer is ramping up orders in volume. On July 22, Aehr noted this company had placed an order for eight additional systems. Just a month later, this customer has put in another order for six more systems. Aehr, a boom-or-bust stock, is currently booming Aehr's financials were disappointing over its past fiscal year ended May 30, with revenue down about 10% and a small loss per share. However, this was during a year in which EV chip customers, who had been Aehr's core market, scaled back their investments, while Aehr's AI customer was basically in the low-volume testing phase. If the EV market recovers, the addition of this new high-volume AI hyperscaler customer should make for a much better year or years. Notably, Aehr's stock is still down more than 50% from the all-time high set back in 2023, even after today's monster gain.