Key Takeaways
- Oppenheimer launches coverage on AEHR with Outperform designation and $120 price objective
- Shares currently priced at $95.56, representing a 373% gain year-to-date
- Company’s Sonoma solution gains traction with major hyperscaler through landmark $41 million contract
- FOX-XP technology reaches high-volume production phase with prominent AI chip manufacturer, securing $22 million additional order
- Analyst forecasts fiscal 2027 and 2028 revenues reaching $141 million and $218 million respectively
Oppenheimer launched coverage on Aehr Test Systems (AEHR) Wednesday, assigning an Outperform rating alongside a $120 price objective, though shares declined 4.4% during premarket activity.
Trading at $95.56, the stock has delivered remarkable returns of 373% since the beginning of the year and posted 128% gains over the past six-month period.
According to analyst Edward Yang, Aehr’s burn-in testing systems subject semiconductor chips to rigorous stress conditions to identify potential failures before final deployment or expensive packaging processes. The investment firm anticipates that increasing power requirements and packaging costs will make late-stage failures more expensive, positioning Aehr advantageously within the AI-driven market transition.
The company’s Sonoma technology has begun scaling operations with a prominent hyperscaler following a groundbreaking $41 million purchase order—representing significant validation from an industry-leading AI infrastructure provider.
FOX-XP Platform Achieves Production Milestone
Aehr’s FOX-XP technology recently transitioned into high-volume production with a significant AI processor manufacturer. This milestone accompanied a $22 million supplemental order, contributing to an order backlog exceeding $100 million.
Oppenheimer’s financial projections estimate fiscal 2027 revenue at $141 million, expanding to $218 million in fiscal 2028. The firm’s second-quarter fiscal 2027 projection exceeds Wall Street consensus, primarily driven by anticipated Sonoma deployment acceleration.
According to InvestingPro analysis, analysts anticipate 181% revenue expansion for fiscal 2027. Three analysts have recently increased their earnings projections.
Oppenheimer recognized the premium valuation concerns. InvestingPro highlights the stock as trading above its Fair Value calculation, commanding elevated revenue multiples.
Additional FOX Platform Opportunities
However, Yang emphasized that existing forecasts provide minimal consideration for FOX potentially securing a second major AI processor client. Landing just one additional AI processor customer for high-volume manufacturing could necessitate dozens of additional systems.
Should this scenario materialize, it could substantially elevate AEHR’s earnings potential, the analyst noted.
Aehr’s fiscal 2026 financial results featured record quarterly bookings totaling $60.7 million. Management issued fiscal 2027 revenue guidance ranging between $130 million and $150 million.
Following these results, Freedom Broker elevated AEHR from Hold to Buy, increasing its price objective to $110. Separately, Jefferies launched coverage with a Buy recommendation and $175 price target, highlighting the company’s pivot toward AI production applications.
Management plans to ship FOX-XP systems throughout the next six months to a high-volume manufacturing partner located in Taiwan.
Additionally, the company secured a repeat order for a FOX-XP multi-wafer configuration from its primary silicon photonics client, with delivery scheduled for the first half of 2027.
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