Stock Pulse
AEHR Test Systems (AEHR) reported strong Q3 2025 financial results, exceeding revenue and earnings expectations, driven by diversification into AI processor burn-in and GaN semiconductors [3], [5], [6], [13]. Despite this positive performance, AEHR withdrew its fiscal year 2025 guidance due to new tariff concerns and a slower-than-expected recovery in the silicon carbide (SiC) market, leading to increased inventory levels [1], [5]. While the company faces headwinds from high short interest [10] and ongoing lawsuits [12], management remains optimistic about long-term growth driven by a healthy backlog, secular demand, and a leading memory customer expected to contribute revenue starting in fiscal year 2027 [1]. Financially, AEHR saw increased Q3 revenue but decreased nine-month revenue year-over-year, with reduced gross margins due to acquisition-related expenses [12]. Though the stock price has declined year-to-date [6], strong fundamentals like high ROE and net income growth suggest potential undervaluation [2].