Stock prices have soared! Aehr (AEHR.US) received an additional order for silicon photon faucets due to “light entering and retreating” in AI data centers detonates test demand

The Zhitong Finance App learned that when the connectivity bottleneck in AI data centers evolved from “not being calculated fast enough” to “not being transmitted fast enough,” silicon photonic technology was being upgraded from an alternative solution to just needed infrastructure. In the midst of this transformation, semiconductor test equipment company Aehr Test Systems (AEHR.US) is becoming a key technology enabler. The company announced on Tuesday that it has received a follow-up production order from its leading silicon photonic wafer level aging (WLBI) customer to purchase a fully automated FOX-XP® multi-wafer production aging system to support the customer's continued expansion of next-generation silicon photonic integrated circuit manufacturing capacity. The system is expected to be shipped in the first half of 2027.

Boosted by this news, Aehr's stock price soared about 7% in pre-market trading on Tuesday, after having surged more than 14% on Monday. Since this year, the stock's cumulative increase has exceeded 300%.

Strategic significance: Silicon photonics moves from “technical verification” to “large-scale mass production”

This order is a continuation of Aehr's long-standing collaboration with its leading silicon photonics customers. The order includes AEHR's turnkey Fox-XP multi-wafer aging test system, which is configured to test up to 9 300mm wafers in parallel, and is equipped with a fully automated FOX WaferPak AutoAligner, which enables fully automated, hands-free high-volume aging operations integrated with automated wafer handling equipment.

This is AEHR's third Fox-XP WLBI order in 2026. The previous two copies were obtained in February (worth $14 million) and March, respectively. The customer received the first FOX-XP production system with fully automated WaferPak Aligner in FY2026 and successfully completed installation and fully automated production verification.

The AI industry is undergoing a paradigm shift from “transmitting electrons” to “transmitting photons.” The customer is developing advanced silicon photonic devices for next-generation optical connectivity and optical I/O architectures, targeting applications in hyperscale AI and cloud data centers, as well as advanced packaging for AI processors and high-performance computing devices. These silicon photonic devices can enable greatly increased bandwidth and lower power consumption communication between AI processors, memory, switches, and network devices, directly solving one of the biggest bottlenecks faced in the continued expansion of AI infrastructure.

The customer received its first FOX-XP mass production system equipped with a fully automated WaferPak Aligner in FY2026, and has successfully completed installation and demonstration, enabling fully integrated, hands-free mass production operation with automatic wafer handling equipment and 300mm wafer FOUP automated guided vehicles.

Gayn Erickson, President and CEO of Aehr, said: “The successful installation and mass production verification of the first fully automated system at this customer's site marks another important milestone in our long-term partnership with the customer. This additional production order was received early in the new fiscal year, which we believe reflects the customer's continued confidence in the Aehr FOX-XP platform and is an encouraging start to the 2027 fiscal year.”

Silicon photonics: the “light in and out” revolution in AI data centers

Behind Aehr's frequent orders is the accelerated penetration of silicon photonic technology in the field of AI infrastructure. Market research agency LightCounting predicts that in 2026, sales of optical modules based on silicon light will exceed 50% of the overall market for the first time, and the total sales of optical modules, AOC, NPO, and CPO are expected to be close to 80 billion US dollars by 2031. TrendForce estimates that the CPO/NPO market will surpass $39 billion in 2030.

Nvidia's Spectrum-X Ethernet silicon optical technology was fully mass-produced in June 2026, and CPO technology is expected to be deployed on a large scale in 2027. The silicon photonics industry is moving from technology verification to large-scale mass production at an accelerated pace.

Analyst Yole pointed out that at the Photonics West 2026 exhibition, optical interconnection technology has left the roadmap discussion stage and has become the core infrastructure of AI data centers.

As hyperscale AI infrastructure expands, major technology companies and AI infrastructure providers are increasingly adopting optical interconnection technology to overcome the bandwidth, latency, and power consumption limitations of traditional electrical interconnections. Industry leaders have identified silicon photonics and optical I/O as key enabling technologies for future AI clusters, rack-level computing, and inter-chip communication to permanently replace copper interconnects that are approaching the limits of performance and power consumption.

Industry forecasts show that as optical communication approaches AI processors and eventually enters processor packaging through optical I/O architectures, silicon photonics deployments will see significant growth in the next few years. Aehr believes silicon photon production is expected to expand significantly over several years, driven by the growth of fiber interconnections in hyperscale AI data centers.

Under this trend, wafer-level aging testing is becoming a fundamental step in the silicon photon manufacturing process. Erickson notes, “As the complexity, power density, and yield of silicon photonic devices continue to increase, WLBI is becoming a foundational manufacturing step for many next-generation devices. Identifying potential defects and stabilizing integrated lasers prior to packaging can improve manufacturing yield, reduce overall production costs, and achieve the long-term reliability required for hyperscale artificial intelligence infrastructure.”

Transformation results: the “second growth curve” from silicon carbide to AI semiconductors

Aehr's order growth reflects a profound transformation of the company's business structure. Two years ago, more than 95% of the company's revenue came from the electric vehicle silicon carbide business; by the 2026 fiscal year, this sector already accounted for less than 5%. The AI accelerator, CPU, and network processor wafer-level aging inspection business became the first growth curve, contributing 71% of the year's revenue.

On July 15, Aehr announced financial results for the fourth quarter of fiscal year 2026. Adjusted earnings per share were $0.11, far exceeding market expectations of a loss of $0.01; revenue of US$18.835 million exceeded expectations. The number of quarterly bookings reached a record high, driving the stock price to soar by more than 30% on the same day. The company's revenue for the 2027 fiscal year is expected to surge 160% to 200%.

In addition to silicon photonics, AEHR is also providing WLBI solutions for AI processors, data center hard disk read/write heads, silicon carbide and gallium nitride power semiconductors, and is collaborating with a major NAND flash memory vendor to develop WLBI for next-generation flash memory wafers.

Market response: increased by more than 400% during the year, and silicon photons became the anchor point of new valuations

Since this year, Aehr's stock price has increased by more than 400% cumulatively. After the announcement of this order, pre-market trading once again increased by about 7%.

Previous orders have established a strong track record for Aehr. On June 17, the company announced that it had received an additional FOX-XP system order from a network product company for the data center optical transceiver market. On February 26, AEHR received a $14 million order from leading AI processor customers, including multiple sets of new fully automated FOX-XP wafer-level testing and aging systems.

The silicon photonics business currently accounts for about 20% of Aehr's total revenue, and this ratio is expected to continue to expand as AI data centers move structurally from “electrical interconnection” to “optical interconnection.” Wedbush analysts have raised the price target to $125.

As copper interconnection in AI data centers approaches physical limits and optical interconnection becomes an inevitable choice, Aehr Test Systems is using the FOX-XP platform's first-mover advantage in silicon photonic wafer-level aging testing to become an indispensable equipment supplier in this “light enters and leaves copper” revolution. From an AI processor order of $14 million, to additional orders from leading silicon photonics customers, to revenue growth expectations of 160% to 200% in fiscal 2027 — this Fremont, California-based test equipment provider is quietly taking an irreplaceable position in the underlying supply chain of AI infrastructure.