Aehr Test Systems Sees AI Demand Fueling Fiscal 2026 Growth

Aehr Test Systems Sees AI Demand Fueling Fiscal 2026 Growth

Aehr Test Systems is experiencing significant growth driven by surging AI demand. The company's semiconductor testing equipment is in high demand as AI development accelerates, positioning Aehr as a key player in the industry.

The fiscal 2026 first-quarter results, ending August 29, 2025, showed revenue growth across multiple segments. President and CEO Gayn Erickson highlighted AI processor testing as a major driver, with both wafer-level and packaged part testing contributing to this growth.

AI Processor Testing in Focus

One major customer, a leading hyperscaler, placed multiple orders for Aehr's Sonoma systems. These systems are used for AI processor burn-in, ensuring reliability. The Sonoma system enhancements, following the acquisition of Incal Technology, include increased power per device and full automation. These upgrades aim to meet the needs of AI processor suppliers and test houses, with positive customer feedback potentially leading to new orders.

Wafer-Level Burn-In Breakthrough

Aehr delivered the first production wafer-level burn-in (WLBI) systems for AI processors. These systems are installed at a major OSAT, showcasing Aehr's capabilities. The company is also partnering with a leading OSAT for advanced wafer-level testing solutions, offering a complete solution from design to high-volume production.

Beyond AI: Expanding Horizons

Demand is also increasing in other sectors, including silicon photonics and hard disk drives. Gallium nitride is showing promise in data centers and automotive applications. The rise of generative AI and electric vehicles are major trends, increasing semiconductor demand and the need for reliability testing. Comprehensive testing is essential to screen for early failures and validate performance under extreme conditions.

Cautious Optimism for the Future

Aehr anticipates order growth across most markets in fiscal 2026, with silicon carbide growth expected to strengthen further into fiscal 2027. Ongoing tariff uncertainty makes the company cautious, but it remains confident in its growth opportunities. The company's strategic positioning and innovative solutions make it well-prepared to capitalize on the expanding AI market and related industries.