TLDR
- Oppenheimer initiated coverage on AEHR with an Outperform rating and a $120 price target
- The stock trades at $95.56, up 373% year-to-date
- Aehr’s Sonoma product is ramping with a leading hyperscaler via a record $41 million order
- The FOX-XP platform entered high-volume manufacturing with a major AI processor, including a $22 million follow-on order
- Oppenheimer projects fiscal 2027 and 2028 revenue of $141 million and $218 million respectively
Oppenheimer initiated coverage on Aehr Test Systems (AEHR) on Wednesday with an Outperform rating and a price target of $120, sending the stock into focus despite a 4.4% dip in premarket trading.
The stock currently trades at $95.56 and has climbed 373% year-to-date and 128% over the past six months.
Analyst Edward Yang said Aehr’s burn-in systems stress-test chips for early failures before deployment or costly packaging. The firm believes rising power and package value increases the cost of late failures, setting up Aehr for an AI-driven inflection.
Aehr’s Sonoma product is already ramping with a leading hyperscaler through a record $41 million order. That is a major vote of confidence from one of the biggest names in AI infrastructure.
FOX-XP Enters High-Volume Manufacturing
The FOX-XP platform recently entered high-volume manufacturing with a major AI processor customer. That came alongside a $22 million follow-on order, adding to a backlog that has crossed $100 million.
Oppenheimer models fiscal 2027 revenue at $141 million and fiscal 2028 at $218 million. The firm’s second-quarter fiscal 2027 estimate sits above consensus, driven by Sonoma ramp expectations.
InvestingPro data shows analysts forecast 181% revenue growth for fiscal 2027. Three analysts have recently revised earnings estimates upward.
Oppenheimer acknowledged the valuation looks rich. InvestingPro flags the stock as overvalued relative to its Fair Value, trading at a high revenue multiple.
The FOX Platform Upside
But Yang pointed out that current estimates give little credit to FOX potentially winning a second major AI processor customer. Even one additional AI processor adopting FOX in high-volume manufacturing could require dozens of systems.
That scenario, if it plays out, could materially raise AEHR’s earnings ceiling according to the analyst.
Aehr’s fiscal 2026 results included record quarterly bookings of $60.7 million. The company provided fiscal 2027 revenue guidance of $130 million to $150 million.
Freedom Broker upgraded AEHR to Buy from Hold after those results, raising its price target to $110. Jefferies also initiated with a Buy rating and a $175 price target, citing the company’s shift toward AI production.
Aehr plans to deliver its FOX-XP systems over the next six months to a high-volume manufacturing partner in Taiwan.
The company also received a follow-on order for a FOX-XP multi-wafer system from its lead silicon photonics customer, with shipment expected in the first half of 2027.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
