Rapidly Climbing by 300%, this Emerging AI Company Showcases Ample Potential for Further Growth

Aehr Test Systems Surges Amidst Growing Demand for Reliability Testing in Hyperscale Data Centers

In an exciting turn of events, shares of Aehr Test Systems (AEHR) have seen a remarkable increase, soaring over 300% since April 2025. The current intraday price of AEHR stands at $25.56, within a day's range of $25.31 to $27.08.

This surge can be attributed to the growing need for Aehr Test Systems' services, particularly in the hyperscale data center sector. With over 1,100 hyperscale data centers in operation at the end of 2024, nearly doubling over the past five years, the demand for reliable semiconductors has become increasingly crucial.

The latest chips, which offer exponentially more processing power, come with a single point of failure, making reliability testing more critical. Aehr Test Systems, a key player in ensuring semiconductor reliability, has been benefiting from this trend.

Notably, tech giant Microsoft has placed multiple orders with Aehr Test Systems in recent months. The company's role in the AI market could be a gold mine, given the primary driver of the demand for hyperscale data centers is artificial intelligence.

However, it's important to note that Aehr Test Systems' financial performance has seen a slight dip over the past year. The company's revenue fell from $66 million in fiscal 2024 to $59 million in fiscal 2025, and the operating profit slipped from $10 million to a loss of $6 million.

Despite this, Aehr Test Systems' backlog (orders that have been placed, but not yet fulfilled) jumped to $15 million from $7 million, indicating a promising future. The company's market capitalization currently stands at $765 million.

Aehr Test Systems was previously an AI stock that suffered in the downturn of the electric vehicle market. However, with its renewed focus on the hyperscale data center and AI industries, Aehr Test Systems could potentially become a significant player in the stock market.

As recently as August 2023, Aehr Test Systems traded for 24 times sales compared to the current 12 times sales. In its heyday, the valuation of Aehr Test Systems peaked at 31 times sales.

In conclusion, the rise of Aehr Test Systems' stock is a testament to the growing importance of reliable semiconductors in the hyperscale data center and AI industries. With several orders from major hyperscalers over the last couple of months and a promising backlog, Aehr Test Systems is poised to make a significant impact in the stock market. As such, it is now considered an "AI stock."

Rapidly Climbing by 300%, this Emerging AI Company Showcases Ample Potential for Further Growth