Due to its pivot toward test solutions for AI processors and the data center semiconductor markets, Aehr Test Systems (AEHR +14.65%) stock has almost become a proxy for how the market is feeling about AI infrastructure spending. Today, the market is feeling good, and that's why the stock rose by more than 13% at 1 p.m. today.
Amazon and Alphabet are spending big
It makes sense to focus on the larger players in the AI sector, and while OpenAI and Oracle have their issues, Alphabet and Amazon.com are highly cash-generative companies with strong balance sheets.
NASDAQ: AEHR
Key Data Points
Their recent spending commitments are nothing short of staggering. After capital spending of $91.5 billion in 2025, Alphabet plans to spend $175 billion to $185 billion in 2026. The guidance from Amazon is no less remarkable. After spending $131 billion in 2025, Amazon plans to spend $200 billion in 2026, "but predominantly in AWS, because we have very high demand. Customers really want AWS for core and AI workloads," according to CEO Andy Jassy on the earnings call. AWS is Amazon Web Services, Amazon's cloud computing business.
Image source: Getty Images.
What it means to Aehr Systems
Aehr Systems is a stock that's been flying recently in anticipation of bumper order growth in the second half of its financial year, driven by AI processor and semiconductor customers needing to ensure the reliability and quality of their chips. It's a key reason I highlighted Aehr as a chip-testing stock to buy for 2026 and beyond.
As such, these mammoth spending commitments indicate that Aehr's total addressable market will grow significantly. Throw in a potential recovery, or at least stabilization, in EV spending (Aehr's previous core market), and it's a stock with considerable upside potential.
