Semiconductor stocks have been at the heart of the artificial intelligence (AI) boom. That's because the chips and equipment are necessary to handle the massive computing power needed for AI workloads.
Chipmakers like Nvidia, Broadcom, and AMD, to name a few, have been juggernauts over the past several years, but they have come back to Earth a bit in 2026. For the most part, that's due more to their unsustainably high multiples rather than a slowdown in revenue or earnings.
But some semiconductor stocks have not slowed down at all in 2026. One of them is Aehr Test Systems (AEHR +4.51%). Aehr has obliterated Nvidia, Broadcom, and AMD, along with most other chipmakers, returning 327% so far in 2026.
Is it too late to buy Aehr Test Systems? Let's take a look.
Image source: Getty Images.
Meet the specialized equipment maker
There are a lot of different types of semiconductor stocks that serve different niches within the AI ecosystem -- and not all of them actually make the chips. Aehr, in fact, doesn't make chips; they make the machines and systems to test chips, whether it's chips for EVs, data centers, memory and storage, or whatever.
While there are some major competitors in the space, both in the U.S. and internationally, Aehr is seen as the leader in wafer-level testing -- which is where it tests multiple chips at once on the large wafer, as opposed to individually.
NASDAQ: AEHR
Key Data Points
Aehr's two biggest markets are testing for EVs and data centers, but as of late, more of the revenue share is coming from data center testing.
In the most recent quarter, revenue was only about $10 million, and the firm expects about $45 million to $50 million for the fiscal year, which ends May 30.
But it has a growing backlog of contracts that have created bullish sentiment on Wall Street. The company reported $37 million in bookings when it reported fiscal third-quarter earnings in April, along with a backlog of about $51 million, including new bookings.
But a couple of weeks ago, Aehr reported a record $41 million production order from a hyperscaler customer, which brought its bookings up to $92 million.
And there is potential for future orders from this hyperscaler, which is building an AI accelerator.
This news, along with earnings, skyrocketed Aehr's stock price by some 186% since March 30 to over $86 per share.
Is Aehr Test Systems stock a buy?
After such a meteoric rise in the past month, is it too late to jump on the rocket ship that is Aehr Test Systems? Yes and no.
Yes, because the company is still operating at a net loss and saw adjusted earnings and revenue shrink in the last quarter. This surge in bookings is great for its long-term prospects, but right now, the stock is way overvalued with a price-to-sales ratio of about 62.
The stock has trended about 11% lower since peaking at a closing high of around $97 per share on April 22. I wouldn't be shocked to see it move even lower as some investors take profits.
Wall Street analysts have a median price target of $67 per share, which would suggest that the price sinks about 24% from its current level.
But over the longer term, about 60% of analysts still see Aehr stock as a buy. That's based on the fact, most likely, that it has a growing backlog of bookings that should lead to increasing growth in the years ahead. Analysts anticipate 71% revenue growth in fiscal 2027 and earnings to increase to $0.15 per share, up from an estimated net loss of $0.09 per share this fiscal year.
Investors may want to tune in to Aehr's fourth-quarter earnings report on July 14 for more information on their outlook for the next fiscal year.
So, Aehr is definitely a stock to buy, but maybe just not right now after such a rocket ride.
