AEHR Stock Heads For Biggest Single-Day Gain Since July — Analysts Cut Targets Despite Earnings Beat, Raised Guidance

• Jefferies cut its Aehr price target to $140 from $175, while Lake Street lowered its target to $90 from $110.
• Aehr reported record quarterly revenue, up 200% to $33 million, while adjusted EPS reached $0.28.
• The company’s effective backlog reached $109.3 million, supporting management's higher fiscal 2027 revenue outlook.

Aehr Test Systems (AEHR) stock surged around 26%, putting it on track for its biggest single-day percentage gain since July. The rally followed the semiconductor testing equipment maker's record quarterly results and higher annual revenue guidance.

According to a note cited by TheFly, Lake Street lowered its price target on Aehr to $90 from $110 while maintaining a ‘Buy’ rating, describing the company's quarterly performance as strong.

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The firm attributed its target reduction to broader compression in valuation multiples across semiconductor capital equipment stocks.

Jefferies also maintained its ‘Buy’ rating while reducing its target to $140 from $175. The firm said Aehr's new $150 million revenue forecast appeared conservative because its backlog already covered most of the fiscal year.

Record Earnings And Higher Guidance

Aehr reported fiscal first-quarter revenue of $33 million, up 200% year over year and 75% sequentially. Its earnings per share (EPS) rose to $0.28, beating FiscalAI estimates of $0.13.

The Semiconductor testing equipment maker’s quarterly bookings totaled $46.7 million, while effective backlog reached $109.3 million as of November 1, including orders received after quarter-end.

Aehr raised its fiscal 2027 revenue forecast to $150 million from a previous range of $130 million to $150 million, implying 200% growth over fiscal 2026. The company also expects non-GAAP net income of at least 20% of revenue.

AI Demand Drives Management's Outlook

CEO Gayn Erickson attributed the stronger outlook to accelerating demand for AEHR’s AI semiconductor test and burn-in solutions, a substantial backlog, and improved visibility into customer production schedules.

Aehr is shipping and installing more than a dozen Sonoma burn-in systems monthly to support a hyperscale customer's first AI processor. The customer's second processor has completed qualification, with production expected to ramp in calendar 2027.

Management also said a major AI chip supplier plans to evaluate its FOX-XP wafer-level burn-in system at a Taiwanese testing partner in early 2027, with a potential high-volume production decision following installation and validation.

What Retail Thinks About AEHR Stock

On Stocktwits, retail investors’ sentiment around AEHR stock improved to ‘extremely bullish’ from ‘neutral’ a day ago, amid extremely high user message volume. 

So far this year, AEHR stock has nearly tripled, surging over 188%. By comparison, the Vanguard Information Technology ETF (VGT), which holds the stock, has risen around 23% over this period.

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