In This Article:
We recently published an article titled Why These 15 Semiconductor Stocks Have Been Plunging So Far in 2025. In this article, we are going to take a look at where Aehr Test Systems (NASDAQ:AEHR) stands against the other semiconductor stocks.
Wall Street has gotten increasingly bearish on semiconductor stocks over the past few months as concerns about the profitability and sustainability of AI have gained traction. This was compounded by DeepSeek at first. The market recovered from that, but as Microsoft started canceling some data center leases and Nvidia failed to beat earnings by stellar margins, sentiment has turned sour again.
AI-related semiconductor stocks, which have been pick-and-shovel plays, are bearing the brunt of the selloffs, as they are the ones sitting on top of a two-year-long rally. This is a cyclical industry, so it’s possible that semiconductor stocks are now shifting into a bearish phase.
You should keep up with these stocks, as they’ve delivered multibagger gains over the past two years. There’s a good chance that the AI narrative recovers from here. And even if it doesn’t, it’s still worth looking into the big losers and the reasons behind their decline.
Methodology
For this article, I screened the worst-performing semiconductor stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician overlooking a circuit board being built and tested for a semiconductor device.
Aehr Test Systems (NASDAQ:AEHR)
Number of Hedge Fund Holders In Q4 2024: 15
Aehr Test Systems (NASDAQ:AEHR) provides semiconductor test and burn-in solutions. The company specializes in wafer-level and package-level systems.
The stock is down significantly so far in 2025, as it posted disappointing Q2 FY2025 results. Aehr Test Systems reported Q2 fiscal 2025 revenue of $13.5 million, down 37% year-over-year from $21.4 million.
It also posted a GAAP net loss of $1 million compared to a $6.1 million profit in the year earlier. EPS came in at $0.02 and missed the $0.03 consensus estimate.
The consensus price target of $25 implies 182.49% upside.
Aehr Test Systems (NASDAQ:AEHR) stock is down 44.86% year-to-date.