Chip Testing Automation: 1 Stock Set for Many Years of Double-Digit Growth

• The institution has aggregate orders from a large hyperscaler arsenic it ramps up its AI processor spending.

• The electrical conveyance superior spending marketplace is expected to instrumentality to growth.

• Wall Street expects double-digit income maturation successful the years to come.

• 10 stocks we similar amended than Aehr Test Systems ›

The semiconductor manufacture is highly cyclical, with profits soaring successful the up years and past slumping successful the down years. Consequently, it makes consciousness to support a adjacent oculus connected the cycle, arsenic cipher wants to bargain conscionable earlier the down portion of the rhythm begins, and everybody wants to bargain conscionable earlier the up portion of the rhythm begins. There's crushed to judge that Aehr Test Systems (NASDAQ: AEHR) is successful the second group, and it could beryllium acceptable for galore years of growth. Here's why.

Aehr Test Systems provides trial solutions for "testing, burning-in, and stabilizing semiconductor devices successful wafer level, singulated die, and bundle portion form," according to its filings astatine the Securities and Exchange Commission. It has traditionally provided wafer-level burn-in (WLBI) trial solutions to silicon carbide (SiC) spot manufacturers.

Given that the SiC spot extremity marketplace is dominated by electrical vehicles (EVs), Aehr Test Systems' gross has typically travel from EV chipmakers, with ON Semiconductor (NASDAQ: ON) a cardinal customer. It's a concentrated market, and Aehr's accepted lawsuit premix has reflected that with 5 ample customers accounting for 97%, 93% and 77% of full income successful fiscal 2023, 2024, and 2025, respectively.

It's besides a marketplace that experienced a roar erstwhile automakers rushed to accelerate concern during lockdowns and successful effect to authorities regulations aimed astatine encouraging EV adoption. Unfortunately, the marketplace has slowed importantly arsenic EV adoption hasn't picked up arsenic the manufacture expected, and galore automakers person scaled backmost their EV improvement plans.

This tin beryllium observed successful the income trajectories of ON Semiconductor and Aehr Test Systems.

But here's the thing. Aehr is rapidly processing and increasing a caller enactment of concern successful WLBI trial solutions for artificial quality (AI) processors, which volition diversify its gross watercourse and exposure it to the fast-growing AI/data halfway extremity market.

Indeed, the institution already has what absorption describes arsenic "a world-leading hyperscaler" placing aggregate orders, and "this lawsuit has already outlined plans to grow capableness for this instrumentality and present caller AI processors implicit the coming twelvemonth to beryllium tested and burned successful connected our Sonoma platform," according to Aehr's first-quarter 2026 net merchandise (ending Aug. 29). Aehr besides has a relation to play successful investigating chips made for AI applications, specified arsenic successful robots.