AEHR is a much small company than TER but may/could see huge growth if their AI testing takes off.
Metric _________________|___AEHR_______|_____TER
-------------------------------------|------------------------|---------------------
Market Cap____________ | ~$384M–$464M | ~$14.4B–$14.9B
Forward PE Estimate____ | ~14.4–16.6_____| ~25.2–26.0
Dividend Yield__________ | 0%____________ ~0.58%
Volatility ______________| 23–24% (higher)__| 9–11% (lower)
Sharpe Ratio (12M) _____| 0.43 to -0.18_____ -0.81 to -0.68
Market Share (Q1 2025)__ | 1.98% _________| 89.34%
(Notice the difference in Market Share).. TER is 28x larger based on Market Cap but has 89% of the market share)
Could AEHR squeeze out some of that market share?
F-Score Criteria: Specifics and Recent PerformanceAehr Test Systems (AEHR)- F-Score: 2 or 3 (out of 9, low)
- Passed Criteria:
- Positive operating cash flow
- No dilution (stable/reduced shares outstanding)
- Possibly gross margin improvement (varies by source)
- Failed Criteria:
- Positive ROA
- Year-over-year ROA improvement
- CFROA > ROA
- Lower leverage
- Higher current ratio
- Asset turnover improvement
Teradyne Inc (TER)- F-Score: Not explicitly stated in the search results, but based on TER’s larger size, higher profitability, and more stable financials, it is likely higher than AEHR’s. TER has:
- Consistent profitability (positive net income and operating cash flow)
- Dividend payments (suggesting stability)
- Strong revenue growth (14.3% YoY in Q1 2025)
- Higher current ratio and lower volatility
- Probable Passed Criteria:
- Positive ROA
- Positive operating cash flow
- Year-over-year ROA improvement
- No dilution (TER has not significantly increased shares outstanding)
- Gross margin improvement (given revenue and net income growth)
Key Contrasts- Market Cap: TER is vastly larger than AEHR, with a market cap nearly 30–40 times greater.
- Valuation: TER trades at a higher forward PE (25–26) vs. AEHR (14–16).
- Risk/Volatility: AEHR is much more volatile, with a Sharpe ratio that is higher but still negative or near zero, while TER’s is lower and negative, reflecting recent underperformance.
- F-Score Health: AEHR’s low F-Score signals financial weakness, while TER’s fundamentals suggest it would pass more F-Score criteria, though the exact score is not given in the results.
- Dividend Policy: TER pays a dividend; AEHR does not.
Market Share- AEHR: ~2% of the market
- TER: ~89% of the market in their segment as of Q1 2025
Summary:
Teradyne (TER) is a much larger, more stable, and more profitable company with a higher valuation and stronger fundamentals. Aehr Test Systems (AEHR) is smaller, more volatile, trades at a lower PE, and currently fails most F-Score criteria, indicating weaker financial health
----------------------------------------------------------
Absolutely—here’s an expanded, up-to-date answer on Teradyne (TER) and AI chip test equipment, with context for AEHR and the current industry trend:
Aehr Test Systems (AEHR) and AI Chip Testing- Recent Earnings & AI Focus:
AEHR’s management recently highlighted that they are now providing test solutions for AI semiconductor companies. This is a significant development, as the AI hardware market (especially for data centers and edge AI) is booming, and reliable testing is critical for high-performance chips.
- Investor Interest:
If you are interested in this AI angle, it’s worth reading AEHR’s latest earnings call transcript and their early June investor conference presentation. Both should provide color on new customer wins and the types of AI chips (e.g., HBM, advanced logic) they are now testing.
Does Teradyne (TER) Have Similar AI Test Equipment?Yes, Teradyne is a major player in test equipment for AI chips—here’s how:
1. Teradyne’s Core Business- Teradyne is the world’s largest supplier of semiconductor test equipment, with a dominant market share (~89% in its segment).
- Their systems test a wide range of chips: logic, memory, SoCs, microcontrollers, and increasingly, advanced AI accelerators.
2. AI Chip Testing Solutions- AI chips (including GPUs, NPUs, TPUs, and custom accelerators) require rigorous testing for speed, power, and reliability—especially as they are built on cutting-edge process nodes (like 5nm, 3nm, and below).
- Teradyne’s flagship products, such as the UltraFLEX and J750 families, are widely used to test:
- High-performance GPUs (used in AI training/inference)
- Custom AI accelerators from hyperscalers (Google, Amazon, Microsoft, etc.)
- HBM (High Bandwidth Memory) and advanced memory modules, which are critical for AI workloads
3. Industry Partnerships & Customer Base- Teradyne’s customer list includes NVIDIA, AMD, Intel, and leading foundries and OSATs, all of whom are deeply involved in AI chip development.
- Their test platforms are regularly updated to handle the latest AI chip architectures and packaging technologies (including chiplets and 3D stacking).
4. Recent Developments- In recent years, Teradyne has announced enhancements to its test platforms specifically for:
- AI and machine learning chips
- High-density, high-speed memory (HBM3, GDDR6X, etc.)
- Wafer-level and final test of advanced logic devices
- Industry news and Teradyne’s own press releases confirm ongoing R&D and product launches aimed at the AI semiconductor market.
5. Competitive Comparison- AEHR specializes in burn-in and reliability testing (especially for silicon carbide and now AI chips), which is a niche but growing area.
- TER is the broad market leader in functional and parametric testing for all advanced chips, including AI, and is considered the gold standard for high-volume, high-complexity devices.
Bottom Line- Both AEHR and TER are involved in AI chip testing, but Teradyne is the established leader with a comprehensive suite for the world’s top AI chipmakers.
- AEHR is newer to this space but is leveraging its expertise in reliability/burn-in for emerging AI hardware needs.
- If you’re following the AI hardware/testing theme, both companies’ investor materials are worth a read—TER for scale and breadth, AEHR for niche innovation and growth potential.
--------------------------------------------------------------------------------
TER owns the largest customers NVDA & AMD (so far..) |
