Prosper Stars & Stripes, a long/short equity fund, covered its short position in Aehr Test Systems during the first quarter of 2026. The fund cited Aehr as the largest detractor in its short book for the quarter, noting that the company's wafer-level test and burn-in equipment remains a niche solution with limited adoption. Aehr's revenue fell 11% year-over-year to approximately $59 million in fiscal 2025, and consensus estimates point to a further 17% decline to roughly $50 million in fiscal 2026. The fund highlighted significant customer concentration, with ON Semiconductor accounting for about 80% of revenue, and a narrow use case focused on silicon carbide devices for electric vehicles. Despite management's emphasis on growth opportunities in AI and silicon photonics, Prosper Stars & Stripes concluded that Aehr's business reality is weaker than its high multiples imply, but covered the position in adherence to its risk management discipline.
Aehr Test SystemsRevenue declining, limited adoption, customer concentration, and weak outlook for Aehr's test equipment.
ON Semiconductor CorporationON Semiconductor is mentioned as Aehr's major customer (80% revenue), but no direct impact on ON Semi's own business is discussed.