Aehr Test Systems: The Earnings Reset Is Bigger Than The Rally

I am initiating Aehr Test Systems, Inc. with a Buy rating and a $144 price target, implying 50% upside from $96.

The biggest driver is AI burn-in, where the $41 million hyperscale customer order supports my view that AEHR’s Sonoma platform is moving from validation into real production demand.

I have estimated about $1.0 in incremental EPS contribution, and using a 144x forward non-GAAP P/E multiple gives me a $144 price target, representing about 50% upside.

The biggest risks AEHR are execution, customer concentration, and valuation risk. But I believe the backlog, bookings momentum, and expanding end-market exposure make the Buy rating reasonable.

I am initiating coverage of Aehr Test Systems, Inc. (AEHR) with a Buy rating. My price target is $144 representing a 50% upside potential from the current price level of $96.