Here's Why Aehr Test Systems Crashed This Week
Shares in Aehr Test Systems (NASDAQ: AEHR) declined by 25.7% in the week to Friday morning. The move comes after its second-quarter 2025 earnings report and management's commentary on its outlook for the year disappointed the market.
Aehr is known for its silicon carbide wafer level and test burn-in systems that help chip manufacturers improve productive efficiency. Sales to the silicon carbide chip market have made up 90% of Aehr's sales in the past. Given that about 70% of silicon carbide chips go to the electric vehicle (EV) and EV charging infrastructure market, Aehr is heavily dependent on spending on EVs.
Unfortunately, that's been a difficult place over the last year as automakers have cut production plans in the face of disappointing EV sales. Moreover, on the earnings call, CEO Gayn Erickson told investors, "Based on recent market forecasts and large suppliers of silicon carbide semiconductors, growth in silicon carbide sales outside of China should remain challenging before recovering in calendar 2026."
Source Fool.com
