Here's Why Aehr Test Systems Stock Had a Wild Ride in the First Half of 2025
The company has successfully opened up new markets that could potentially be far larger than its core silicon carbide end market.
10 stocks we like better than Aehr Test Systems ›
Shares in Aehr Test Systems (NASDAQ: AEHR) slumped by 22.2% in the first half of 2025, according to data provided by S&P Global Market Intelligence. That figure may surprise investors, not least because it's a long, long way from telling the whole story of a stock that declined 56% in the first three months of 2025 only to rise 77.4% in the last three months of the half-year.
The fall and rise of the stock mirrors the narrative around it and its end markets. The company recently reported its full-year financial 2025 earnings. For the sake of clarity, its financial year ends on May 30. Going back to focusing on the first six months of the calendar year, Aehr started the year with most investors thinking of it as a company focused on the silicon carbide (SiC) wafer-level burn-in (WLBI) market, and with good reason, because the SiC WLBI market accounted for 90% of its sales in its financial year 2024.
ON Semiconductor (NASDAQ: ON) has previously been named as a significant customer, and its sales slowdown has mirrored a broader slowdown in the SiC market, principally in the electric vehicle (EV) market. A combination of an ongoing relatively high interest rate and a correction from a previous boom in EV spending meant Aehr couldn't rely on the SiC WLBI market for growth in its financial 2025.
Indeed, CEO Gayn Erickson recently outlined that SiC WLBI "made up less than 40% of our revenue this fiscal '25." As such, the story of Aehr's first three months was disappointing, as its EV end market for SiC WLBI equipment continued to weaken.
The significant turnaround in the stock's fortunes in 2025 occurred in the third-quarter earnings report in April, when management announced it was expanding into new markets and was on track to generate 35% of its revenue (later confirmed) from the artificial intelligence (AI) processor burn-in market. In addition, management said it had "four customers representing over 10% of revenue, and three of these are new markets," including WLBI of gallium nitride (GaN) semiconductor supply to the automotive market.
Furthermore, on the fourth-quarter earnings release, Erickson said it had secured "a major hyperscaler" as a first production AI customer in the packaged part burn-in (PPBI) market.
While Aehr isn't naming these significant customers, a slide deck of its customers includes names like Microsoft, Alphabet's Google, Nvidia, ON Semiconductor, and Infineon, among many others.
Management believes its AI end markets are potentially 3 to 5 times larger than its traditional SiC markets, and that optimism is fueling the current stock price strength.
Before you buy stock in Aehr Test Systems, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Aehr Test Systems wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!*
Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of July 7, 2025
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Nvidia. The Motley Fool recommends ON Semiconductor and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Here's Why Aehr Test Systems Stock Had a Wild Ride in the First Half of 2025 was originally published by The Motley Fool
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Five ways to avoid, reduce college debt
Students searching for the college of their dreams typically consider a multitude of factors: strong academic program in their major, vibrant campus life with attractive amenities, student abroad and internship opportunities. But one factor that eventually becomes a focal point is college cost. Currently, more than 40 million Americans have federal student debt totaling more than $1.6 trillion. To avoid joining that group, collegebound students should consider some strategies. Students should apply to at least one public in-state college, where the list price tuition is typically the most affordable. The tuition at Rutgers University – New Brunswick for this past academic year was $17,929 for New Jersey residents. At The College of New Jersey (TCNJ) it was $19,632, and at New Jersey Institute of Technology (NJIT) it was $19,000. Room and board do add to the cost, but most New Jersey students live within commuting distance of at least one of New Jersey's 11 public four-year colleges. More: Demonstrated interest bolsters acceptance rate | College Connection Students should spend time in high school identifying the field they want to pursue in college. It's never a good idea to start college 'undecided' because there's no guarantee that once a student does identify a favorite major, there will be a seat available in the program. Even if the student is able to enroll, the courses that have already been taken may not count towards those required for the major. Thus, graduation may be delayed by one or more semesters – significantly increasing the cost of earning a degree. Students should earn money during their college years to help offset student debt or at least cover some of their living expenses. There are companies with locations near many colleges that offer tuition reimbursement including Chipotle, McDonalds, UPS, AT&T, Comcast, T-Mobile, Best Buy, Home Depot and Walmart. More: College essays present unique opportunity to shine | College Connection Students should invest some time in seeking, and applying for, available scholarships. A good place to start is at which offers a scholarship search database that includes four million scholarships that are collectively worth more than $22 billion. Students should work hard to have the highest GPA and SAT scores that they are capable of earning. It's typical for colleges to award scholarship money based on these criteria. Whatever scholarship money is offered for the first year is typically renewed for the next three years. Thus, a $15,000 award ultimately provides $60,000 in scholarship money. So, focusing on GPA and SAT scores is frequently the easiest way for students to minimize their student debt. By paying attention to college costs in advance of enrolling, students can avoid a future of debilitating debt. Susan Alaimo is the founder & director of Collegebound Review, offering PSAT/SAT® preparation & private college advising by Ivy League educated instructors. Visit or call 908-369-5362. This article originally appeared on College debt: Five ways to avoid, reduce financial burden
Yahoo
22 minutes ago
- Yahoo
'I get euphoric': Warren Buffett once said he 'loves it' when the US stock market does this one thing
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. In the wake of President Donald Trump's reciprocal tariff announcements, markets have see-sawed as investors try to find their footing — but depending on your investment perspective this might not be a bad thing. For instance, legendary investor Warren Buffett is on record saying he's fond of bear Markets. 'I love it when the things we buy go down. I get euphoric — you know the stocks are down today and I'm buying more of something I was buying yesterday — I'm buying it cheaper,' he said during an October 2014 interview with Fortune Magazine. This advice could be as valid today as it was then. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) You don't have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here's how In the first quarter of 2025, both the S&P 500 index and the Nasdaq Composite recorded their highest losses since 2022, breaking a five-quarter winning streak. During this time the CBOE (VIX) — often referred to as Wall Street's 'fear gauge' — experienced one of its largest leaps at a 33.97 point increase on April 8, based on confusion surrounding U.S. reciprocal tariff policy. This was the largest jump the CBOE has seen in the last year. Buffett's approach offers a different way to view those unsettling red numbers in your brokerage account. He likened it to grocery shopping — where finding items at a reduced price is a win. Yet, when it comes to stocks, some investors don't apply the same bargain-hunting mindset. 'They think that the stock knows more than they do, so that when the stock goes down, they say the stock is telling them something … they take it as kind of a referendum on themselves, me versus the stock: 'If it ever gets back to what I paid, I'm going to sell it,'' he observed. But for Buffett, a drop in stock prices signals the chance to get more for his money. Buffett's long-term investing approach has resonated with many. He recommends investors avoid short-term market noise and buy low-cost index funds instead, regardless of broader market conditions. 'If you're worried about corrections, you shouldn't own stocks,' Buffett said during an interview with The Street in 2015. 'The point is to buy something you like at a price you like, and then hold it for 20 years. You should not look at it day-to-day.' Consistently investing in a low-cost index fund can compound your wealth over time, thanks to dollar-cost averaging. For instance, if you routinely invest $20 every week for 20 years, you'll end up with just over $51,300, assuming an annual compound interest rate of 8%. Buffett believes that today's investors have more flexibility than ever to potentially build their empire through stock investing. But he also cautioned that this can be a double-edged sword. While it allows investors to make swift moves, it can also lead to hasty decisions. 'It's a huge advantage which people turn into a disadvantage,' Buffett said, adding that making investments based solely on stock price movements is misguided. 'There is nothing about the price action of the stock that tells you whether you should keep owning [it].' Read more: Rich, young Americans are ditching the stormy stock market — Buffett believes that holding onto a stock should depend on what your expectations are for the company's future performance, not how much it's worth now. This can be complicated to assess, especially amid rapid-fire economic policy changes. But Moby's jargon-free market research can help you out. Moby is run by a team of former hedge fund analysts, and their track record speaks for itself. The platform's stock picks have outperformed the S&P 500 index by 11.95% on average over the past four years. That's on top of the index's 10% annualized gains during this period. In fact, over 75 stock recommendations from Moby delivered returns greater than 100%. With Moby Premium, you can access high-quality research in easy-to-understand reports from Wall Street veterans. Sign up today and become a smarter investor within minutes. Historically, bear market conditions don't last forever — even if they can drag during a deep recession. But short-term fluctuations are worrisome, especially if most of your wealth is concentrated in the stock market. To protect yourself from market chaos, consider diversifying a portion of your portfolio into alternative assets that traditionally withstand the test of time. Assets like real estate can sometimes offer much-needed relief. New investing platforms are making it easier than ever to tap into the real estate market. For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors. With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property. With risk-adjusted internal returns ranging from 12% to 18%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets. Gold — often considered a safe haven asset — can also be a diversifier. The precious metal can add value to your portfolio, with prices climbing past $3,000 per ounce this year. Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link. If you'd like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver. To learn more about how Priority Gold can help you reduce inflation's impact on your nest egg, download their free 2025 gold investor bundle. Alternative assets like art could also be valuable additions to your portfolio. Art has historically been negatively correlated with stocks — meaning they have been known to go up in value during a market downturn. For decades, blue chip art was only accessible to the ultra-wealthy. In 2024, elite investors allocated as much as 25% of their total portfolios to art collections. But Masterworks is changing that. You can invest in fractional shares of works from artists like Banksy, Picasso, and Basquiat. From their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5% among assets held longer than a year. Get priority access and start investing in fine art within minutes. See important Regulation A disclosures at Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid? This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Car insurance in America could climb to a stunning $2,502/year on average — but here's how 2 minutes can save you more than $600 in 2025 Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Money doesn't have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27 minutes ago
- Yahoo
$4.2M M-123 project kicks off July 15 with lane closures, delays
The Michigan Department of Transportation is investing $4.2 million to resurface 19 miles of M-123 from Luce County Road 500 to Paradise. The project is scheduled to start Tuesday, July 15 and end by Oct. 24. According to a community announcement, the work includes milling and resurfacing, surface sealing, crack sealing, culvert replacement, signing, aggregate shoulders and pavement markings. Subscribe: Check out our latest offers and read the local news that matters to you The initial stage of the project, through Aug. 28, includes culvert replacements. During this stage, motorists should expect one lane of alternating traffic using portable traffic signals, with a speed limit of 25 mph. Remaining work will be completed using traffic regulators, with the work zone speed set at 45 mph. M-123 is expected to be fully open to traffic by the end of the day on Fridays. The project includes a three-year pavement performance warranty and a three-year materials and workmanship pavement warranty. This story was created by Janis Reeser, jreeser@ with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the information gathering, review, editing and publishing process. Learn more at This article originally appeared on The Sault News: M-123 construction to bring delays, jobs and smoother roads
