Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTMarc Guberti, The Motley FoolSun, June 28, 2026 at 5:04 PM GMT+2 4 min readThe stock of Aehr Test Systems (NASDAQ: AEHR) got a lot of attention after rallying almost 681% over the past year. A little over half of that gain came in 2026 alone. Sounds like a stock worth a closer look, right?Let's take a look at what it does before making any commitment to buy shares. Here's an overview of Aehr Test Systems' involvement with the artificial intelligence (AI) boom and whether it presents a good buying opportunity.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.What does Aehr Test Systems do?AI chipmakers like Nvidia and Broadcom sell millions of chips per year, but not all of them actually work; a small percentage fail shortly after use. Tech companies accept it as a cost of doing business, but if the failure rate were very high, it might make hyperscalers more wary.Companies like Aehr Test Systems address this issue by stress-testing microchip batch samples under extreme conditions to catch defects early. This reduces the number of defective chips that leave factories.The company has been testing its technology through deals with hyperscalers for multiple years and has finally started landing lucrative deals. It reported over $37 million in quarterly bookings in its fiscal 2026 third quarter (ended Feb. 27, 2026) and said that it anticipated a "near-term follow-on production order" from its top hyperscale customer.Less than two weeks later, that big booking arrived. A record $41 million production order from that hyperscale customer resulted in second-half bookings exceeding $92 million. Aehr Test Systems also announced "a strong pipeline of forecasted customer orders in place."Earlier this month, management announced another big win: a follow-on production order from what it described as "a global leader in networking products and solutions," a major supplier to the data center optical transceiver market.Can Aehr Test Systems rally continue?Aehr Test Systems is gaining more attention for its stress-testing technology, and revenue growth could accelerate significantly. The $92 million in second-half bookings is sizable when compared to the $10.3 million in third-quarter revenue.The $41 million production order from the lead hyperscaler shows how quickly the backlog and overall revenue can grow. Each order of that caliber will have a seismic impact on revenue, and management is positioning itself to woo multiple hyperscalers.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info