Aehr Test Systems just reminded Wall Street why the picks-and-shovels play in the AI gold rush still works. The semiconductor testing company posted fiscal Q4 2026 results on July 14 that blew past analyst expectations, sending shares up between 21% and 29% in the aftermath.

The numbers tell a clear story: $18.8 million in quarterly revenue, a 34% jump year-over-year, paired with record quarterly bookings of $60.7 million. But the real jaw-dropper was the guidance. Aehr is projecting fiscal 2027 revenue between $130 million and $150 million, which represents 160% to 200% growth over the $50 million it reported for fiscal 2026.

A backlog that speaks volumes

The company’s effective backlog hit $100.6 million as of the earnings announcement, giving it exceptional visibility into future revenue. That’s roughly twice its entire fiscal 2026 top line, already sitting in the pipeline.

On the bottom line, Aehr posted GAAP net income of $1.4 million, or $0.04 per share, for the quarter. The non-GAAP figure looked healthier at $3.6 million, translating to $0.11 per share. For fiscal 2027, the company is targeting non-GAAP net income margins between 18% and 22% of revenue.

Aehr is sitting on $116.5 million in cash, giving it plenty of runway to scale operations without diluting shareholders or taking on debt.

CEO Gayn Erickson pointed to expanding partnerships with AI processor suppliers and hyperscale data centers as a key growth catalyst. The company’s wafer-level burn-in technology, which stress-tests chips before they’re packaged, has become increasingly critical as AI accelerators push the boundaries of chip complexity and reliability.

Why AI and EVs are fueling this engine

As hyperscale cloud providers pour billions into AI infrastructure, the demand for reliability testing is scaling in lockstep. The company also flagged silicon photonics, a technology used in high-speed data transmission within data centers, as another growth vector.

Aehr recently secured approximately $8 million in new orders for silicon carbide device testing, a technology central to electric vehicle powertrains. Silicon carbide chips handle high voltages more efficiently than traditional silicon, making them preferred components in EV inverters and charging systems. After a period of slower EV adoption curves dampened enthusiasm for SiC testing, demand appears to be reaccelerating.