Aehr Test Systems, Inc. (AEHR) shares fell nearly 17% in Monday's extended session after the semiconductor testing solutions company reported a year-over-year drop in its first-quarter revenue and failed to issue formal guidance, citing tariff-related uncertainty.

On Stocktwits, retail sentiment toward Aehr Test Systems stock remained 'bearish' (35/100) as of late Monday, while the message volume was 'extremely high.'

The Fremont, California-based company's revenue for the first quarter of the fiscal year 2026 fell to $11 million from $13.1 million in the year-ago period, although it exceeded the Fiscal consensus of $10.77 million. The adjusted earnings per share (EPS) were $0.01, down significantly from the year-ago's $0.07.  Analysts, however, were bracing for only break-even results. Bookings totaled $11.4 million for the quarter, and backlog as of Aug. 29 was $15.5 million. 

President and CEO Gayn Erickson said,“We are pleased with the start to this fiscal year, with revenues across several market segments and momentum in sales and customer engagements in both wafer-level and packaged part test and burn-in of artificial intelligence (AI) processors.” He noted that the company's lead production customer, a hyperscaler, has multiple follow-on volume production orders for its new Sonoma ultra-high-power packaged part burn-in systems. 

Looking ahead, Erickson said he expects nearly all of the company's served markets to see order growth in the fiscal year, with silicon carbide growth expected to strengthen further in the next fiscal.

“Although we remain cautious due to ongoing tariff-related uncertainty and are not yet reinstating formal guidance, we are confident in the broad-based growth opportunities ahead across AI and our other markets.”

A bearish user lamented the company's cash burn, calling it“brutal.” They noted that free cash flow has been negative for seven out of the last eight quarters and that in the first quarter alone, the company burned $6.8 million.“At this rate, they'll need to raise cash soon,” they said.

Another watcher called the company an“overhyped” name that is failing to live up to expectations. They see more room for the stock to fall.

For the year-to-date period, Aehr Test System stock has gained over 90%. Wall Street analysts, however, don't share traders' optimism. According to Koyfing, the consensus price target for the stock is $16.50, implying nearly 50% downside from Monday's close.

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