Shares in Aehr Test Systems (NASDAQ: AEHR) slumped by 22.2% in the first half of 2025, according to data provided by S&P Global Market Intelligence. That figure may surprise investors, not least because it’s a long, long way from telling the whole story of a stock that declined 56% in the first three months of 2025 only to rise 77.4% in the last three months of the half-year.
The fall and rise of the stock mirrors the narrative around it and its end markets. The company recently reported its full-year financial 2025 earnings. For the sake of clarity, its financial year ends on May 30. Going back to focusing on the first six months of the calendar year, Aehr started the year with most investors thinking of it as a company focused on the silicon carbide (SiC) wafer-level burn-in (WLBI) market, and with good reason, because the SiC WLBI market accounted for 90% of its sales in its financial year 2024.
ON Semiconductor (NASDAQ: ON) has previously been named as a significant customer, and its sales slowdown has mirrored a broader slowdown in the SiC market, principally in the electric vehicle (EV) market. A combination of an ongoing relatively high interest rate and a correction from a previous boom in EV spending meant Aehr couldn’t rely on the SiC WLBI market for growth in its financial 2025.