Oppenheimer Gives Aehr Test Systems (AEHR) Stock a Bullish Boost with $120 Target

Key Highlights

• AEHR receives Outperform rating from Oppenheimer with $120 price objective
• Shares currently trading at $95.56, reflecting a remarkable 373% gain year-to-date
• Sonoma platform gains traction with major hyperscaler through record-breaking $41 million contract
• FOX-XP system achieves high-volume production milestone with prominent AI processor manufacturer, supported by $22 million additional order
• Oppenheimer forecasts fiscal 2027 revenue at $141 million, rising to $218 million in fiscal 2028

Oppenheimer launched coverage of Aehr Test Systems (AEHR) this Wednesday, assigning an Outperform rating alongside a $120 price objective, though the stock experienced a 4.4% decline in premarket activity.

Aehr Test Systems, AEHR

Shares are presently valued at $95.56, marking an impressive 373% year-to-date surge and a 128% advance over the preceding six-month period.

Edward Yang, the covering analyst, noted that Aehr’s burn-in technology subjects semiconductor chips to rigorous stress testing to identify potential failures before commercial deployment or expensive packaging processes. The investment firm anticipates that increasing power requirements and elevated package costs will drive demand for early failure detection, positioning Aehr strategically for an AI-fueled expansion phase.

The company’s Sonoma solution has begun scaling operations with a prominent hyperscaler, secured through an unprecedented $41 million purchase order. This represents substantial validation from a leading player in artificial intelligence infrastructure.

FOX-XP Platform Achieves Production Milestone

The FOX-XP system has recently transitioned into high-volume production alongside a significant AI processor manufacturer. This achievement was accompanied by a $22 million supplementary order, contributing to an order backlog that now exceeds $100 million.

Oppenheimer’s financial projections estimate fiscal 2027 revenue reaching $141 million, expanding to $218 million by fiscal 2028. The firm’s second-quarter fiscal 2027 projection surpasses consensus expectations, fueled by anticipated Sonoma scaling activity.

According to InvestingPro analysis, analysts are projecting 181% revenue expansion for fiscal 2027. Three analysts have recently upgraded their earnings projections.

Oppenheimer recognized that the current valuation appears elevated. InvestingPro analysis indicates the stock trades above its Fair Value benchmark, commanding a premium revenue multiple.

Potential FOX Platform Expansion

However, Yang emphasized that existing projections provide minimal consideration to FOX potentially securing a second significant AI processor client. The addition of just one more AI processor manufacturer adopting FOX for mass production could necessitate dozens of additional systems.

Should this scenario materialize, it could substantially elevate AEHR’s earnings potential, the analyst noted.

Aehr’s fiscal 2026 performance featured record quarterly bookings totaling $60.7 million. Management issued fiscal 2027 revenue guidance ranging from $130 million to $150 million.

Following these results, Freedom Broker elevated AEHR from Hold to Buy, simultaneously increasing its price objective to $110. Jefferies also launched coverage with a Buy recommendation and $175 price target, emphasizing the company’s pivot toward AI production applications.

Aehr intends to ship its FOX-XP systems throughout the upcoming six-month timeframe to a high-volume production partner located in Taiwan.

Additionally, the company secured an additional order for a FOX-XP multi-wafer configuration from its primary silicon photonics client, with delivery anticipated during the first half of 2027.

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