Aehr Test Systems Inc. (AEHR) stock jumped about 11% on Wednesday after the company announced a follow-on production order tied to growing demand for silicon photonics used in hyperscale AI data centers.

AI Data Center Demand Drives Follow-On Order

Aehr Test Systems said Wednesday it received a follow-on production order from a major silicon photonics customer for its fully automated FOX-XP wafer-level burn-in (WLBI) system, which is scheduled for delivery within six months.

The customer, a global supplier of networking products and optical transceivers, is expanding production of silicon photonics-based transceivers to meet growing demand from hyperscale AI and cloud data centers. Aehr said the customer has also provided a forecast for additional systems later this year as capacity ramps.

CEO Gayn Erickson said the order reflects the accelerating buildout of AI data center infrastructure and validates the company's wafer-level burn-in technology as a key part of silicon photonics manufacturing. He added that the engagement could become a meaningful long-term growth driver for Aehr's WLBI business.

Technical Analysis

The long-term trend remains bullish. Aehr Test Systems is trading 16.3% above its 20-day simple moving average of $100.38 and 26.7% above its 50-day simple moving average of $92.18.

The stock also remains well above its 100-day and 200-day moving averages. That signals strong buying momentum, although extended rallies can also lead to sharper pullbacks if sentiment weakens.

Momentum indicators remain balanced. The relative strength index stands at 54.01, which is in neutral territory. In simple terms, the RSI measures whether a stock is overbought or oversold. A reading in the mid-50s suggests neither buyers nor sellers have a clear advantage, leaving room for the stock to move higher or lower.

The technical setup also supports the broader uptrend. The 20-day simple moving average remains above the 50-day average, a bullish signal.

In addition, the golden cross that formed in July 2025, when the 50-day average moved above the 200-day average, remains intact. That continues to reinforce the stock's long-term strength.

The next key resistance level sits near $122, just below the stock's 52-week high. A move above that level could open the door to further gains, while failure to break through may trigger profit-taking.

Earnings and Analyst Outlook

The company's next expected catalyst is its earnings report, scheduled for July 7, 2026.

Wall Street expects a loss of 2 cents per share, compared with a loss of 1 cent a year earlier. Revenue is projected to increase to $18.69 million from $14.09 million.

Analysts maintain a consensus Hold rating with an average price forecast of $29.50. Recent research actions include a Hold rating from Freedom Broker with a price forecast raised to $38 on March 5, an upgrade to Outperform from William Blair on March 2, and another Hold rating from Freedom Broker with a price forecast increased to $24 on February 13.

Top ETF Exposure

The stock's largest ETF exposure includes the Invesco Dorsey Wright Technology Momentum ETF (PTF), where it represents a 3.76% weighting, and the Inspire Small/Mid Cap ETF (ISMD), where it accounts for 0.39%.

Because Aehr Test Systems has meaningful weight in these funds, significant ETF inflows or outflows could create automatic buying or selling pressure in the stock.

Price Action

AEHR Stock Price Activity: Aehr Test System shares were up 10.98% at $116.34 at the time of publication on Wednesday, according to market data.