Aehr Test Systems (NASDAQ:AEHR) shares are trading higher Wednesday after the company announced an initial production purchase order from its lead production customer for package-level burn-in of a next-generation, higher-power AI processor used in data center applications.
- Aehr shares are climbing with conviction. Why is AEHR stock up today?
Initial Production Order For Next-Gen AI Processor
The initial order includes multiple Aehr Sonoma ultra-high-power package-level test and burn-in systems for production burn-in of the next-generation device. Delivery of the systems, along with turnkey burn-in modules and device-specific sockets, is scheduled for summer 2026.
The customer is described as a premier large-scale data center provider developing proprietary AI accelerator ASICs for large-scale training and inference workloads and has publicly outlined plans for significant capital expenditures for AI and data center infrastructure.
CEO Gayn Erickson said the order represents a key early production win for a next-generation AI processor with a leading hyperscaler. He noted that while Aehr had previously disclosed development work related to higher-power AI processors, the company had not officially been awarded the production burn-in business for this new device until now.
The customer’s current-generation AI processor is ramping in volume production, and Aehr said it expects a large expansion of Sonoma system purchases for that device in the second half of 2026 and into 2027. The company added that future system orders are expected to run in parallel with volume deployments of the next-generation processor, expanding its installed base and long-term consumable opportunity.
Aehr said the Sonoma Ultra platform is designed to support advanced AI processors requiring high power and current levels, as well as multi-zone thermal control during burn-in.
Technical Analysis: Trading Well Above Key Averages With Mixed Momentum
The stock is currently trading 16.9% above its 20-day simple moving average (SMA) and 43.5% above its 100-day SMA, demonstrating significant strength in the short to medium term. Over the past 12 months, shares have increased by 254.81%, and they are currently positioned closer to their 52-week highs than lows, indicating robust performance.
The RSI is at 53.14, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold at this time. Meanwhile, MACD is below its signal line, indicating some bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum, indicating that while the stock has shown strong performance, there may be some caution among traders.
- Key Resistance: $34.50
- Key Support: $30.00
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Aehr Test Systems, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Strong (Score: 95.48) — Stock is outperforming the broader market.
The Verdict: Aehr’s Benzinga Edge signal reveals a strong momentum score, indicating that the stock is currently outperforming the broader market. Investors should consider this positive momentum while monitoring for any shifts in technical indicators.
Aehr Shares Climb Higher
AEHR Price Action: At the time of writing, Aehr shares are trading 27.51% higher at $34.38, according to data from Benzinga Pro.
Image via Shutterstock
Recent Comments