Surged 50% Intraday! AI Data Center Demand Drives Aehr Test Systems (AEHR.US) Orders, Analyst Target Price Nearly Doubles to $125

According to Zhitong Finance APP, semiconductor test solutions company Aehr Test Systems (AEHR.US) has become another beneficiary of the artificial intelligence-driven data center construction boom. On Wednesday, the company reported its fourth-quarter fiscal 2026 results and guidance, with quarterly bookings reaching a record high. Its stock price surged over 50% intraday and closed up 22% on the day.

Strong performance prompted Craig-Hallum analysts to reiterate a “Buy” rating and almost doubled the price target from $68 to $125.

Analysts Christian Schwab and Ben Taxdahl stated in a Wednesday research report: “The company expects significant business growth in the next fiscal year, with fiscal 2027 revenue guidance at $130 million to $150 million, compared to $50 million for fiscal 2026, implying year-over-year revenue growth of approximately 160% to 200%, mainly driven by AI and hyperscale customer adoption.”

They expect the business composition to be similar to last fiscal year. Based on the guidance midpoint of $140 million, AI data center business will account for about 70% of total revenue, or approximately $98 million (last fiscal year about $35.5 million); silicon photonics business will account for about 20%, or $28 million (last fiscal year about $10 million); the remainder (power semiconductors and others) about 10%, or $14 million (last fiscal year about $4.5 million).

This semiconductor testing equipment manufacturer achieved record-high fourth-quarter orders of $60.7 million, with a total effective backlog of $100.6 million. The company expects full-year fiscal 2027 revenue to be between $130 million and $150 million, well above the market consensus estimate of $85 million.

Aehr CEO Gayn Erickson said during the earnings call: “Based on the forecasts we currently see from our wafer-level and package-level burn-in test platform customers, as more orders are finalized, we believe there is an opportunity to further raise our revenue guidance. Even at the $150 million revenue level, we believe capacity will not be a constraint.”

Erickson also explained how the company rapidly diversified its sources of income: “To illustrate the progress we are making diversifying into more high-growth markets, just two years ago, more than 95% of our business depended on the electric vehicle silicon carbide market. Now, nearly 95% of fiscal 2026 revenue comes from non-automotive silicon carbide markets. Reliability and volume wafer-level burn-in screening of AI accelerators, CPUs, and network processors is the fastest-growing market this year, accounting for about 71% of total annual revenue.”

Craig-Hallum raised its full-year fiscal 2027 revenue estimate from $80 million to $131.7 million and significantly increased its earnings per share estimate from $0.20 to $0.74 (up more than twofold).

Other semiconductor testing companies diverged on Wednesday: Cohu (COHU.US) edged up 0.7%, while Teradyne (TER.US) fell 2.5%.