Aehr Test Systems Sees Insider Sell-off Amidst Revenue Decline and GAAP Net Loss

Aehr Test Systems Director Laura Oliphant sold 5,000 shares of stock worth $107,500 on July 25, 2025. The company reported a decline in revenue and gross margins due to tariff uncertainties and restructuring costs, resulting in a GAAP net loss. Despite this, Aehr remains optimistic about future growth in AI technology, gallium nitride power semiconductors, and silicon photonics. The stock score is Neutral with strong technical momentum balanced by financial challenges.

Aehr Test Systems (NASDAQ: AEHR) stock experienced a significant rise this week, with a 41.5% increase in the week ending Friday morning, as investors reacted to news of follow-on orders from a major customer. The company's lead production artificial intelligence (AI) processor customer placed an order for eight high-power systems to be used for volume production test and burn-in of their AI processors [1].

The deal is notable for several reasons. Firstly, it is a follow-on order from a major customer, indicating continued confidence in Aehr's products. The customer is described as a "premier large-scale data center hyperscaler," which could be a reference to Alphabet's Google or Microsoft, both of which are known to develop their AI processors [1]. Secondly, the order comes at a time when AI application demand is surging, suggesting that Aehr's orders growth could be in an early innings stage [1].

Aehr's traditional core business, SiC wafer-level burn-in (WLBI) test equipment, accounted for 90% of its revenue in fiscal 2024 but dropped to less than 40% in fiscal 2025 due to a slowdown in EV spending. The new AI-driven orders demonstrate Aehr's ability to diversify its revenue and earnings streams while waiting for the inevitable recovery in the EV market [1].

However, Aehr's stock is not without its challenges. The company reported a decline in revenue and gross margins due to tariff uncertainties and restructuring costs, resulting in a GAAP net loss. Despite this, Aehr remains optimistic about future growth in AI technology, gallium nitride power semiconductors, and silicon photonics [2].

Aehr's stock has gained over 32% year-to-date and more than 22% in the last 12 months, indicating strong technical momentum. However, the financial challenges must be taken into consideration before making investment decisions. The Motley Fool Stock Advisor analyst team did not include Aehr Test Systems in their list of the 10 best stocks to buy right now, suggesting caution [1].

References:
[1] https://finance.yahoo.com/news/ai-sent-aehr-test-systems-133609841.html
[2] https://www.aehr.com/2025/07/aehr-strengthens-ai-market-share-with-additional-orders-for-sonoma-production-test-and-burn-in-systems/