Aehr Test Systems Q3 2025: Navigating Contradictions in Tariffs, AI Growth, and Market Expectations

These are the key contradictions discussed in Aehr Test Systems' latest 2025 Q3 earnings call, specifically including: Tariff Impact and Uncertainty, AI Processor System Installation and Progress, AI Processor Opportunity, Flash Memory Market Expectations, and Growth Drivers from New Markets:



Diversification and Market Expansion:
- Aehr Test Systems achieved over 10% revenue from four new customers in Q3, representing a significant diversification from their previous 90% reliance on Silicon Carbide wafer level burn-in.
- This diversification is attributed to expanding into new markets such as AI processors, GaN power semiconductors, silicon photonics, and hard disk drives.

AI Processor Market Growth:
- AI processors burn-in accounted for over 35% of Aehr's business this year, with notable orders from a major OSAT/Test House for wafer-level burn-in systems.
- Growth in this market is driven by the explosive growth in the AI processor market, estimated to exceed $120 billion in 2024.

Flash Memory Market Potential:
- Aehr anticipates significant market potential in flash memory, with the NAND market expected to exceed $80 billion in 2025.
- The potential is driven by new technologies requiring wafer-level burn-in to address manufacturing and negative yield implications.

Silicon Carbide Market Utilization:
- Despite a temporary slowdown in battery electric vehicle shipments, Aehr observes a rebound in demand for Silicon Carbide, with the power market projected to exceed $10 billion by 2029.
- Yield improvements and increased demand in power infrastructure, solar, and industrial applications contribute to this growth trend.