Shares of Aehr Test Systems (NASDAQ: AEHR) dropped by 12.1% in December as investors shied away from riskier AI-related stocks. The company’s revenue declined due to a pullback in EV investments by automakers after disappointing sales. Aehr is now targeting new markets for its WLBI test systems, including AI processors.

Despite growing AI-related orders, Aehr Test Systems continues to report revenue declines and losses. Second-quarter earnings showed a decrease in revenue from $26.6 million to $20.9 million in the first six months. The market is cautious of cash-burning companies like Aehr amid more profitable competitors in the AI space.

Aehr Test Systems is positioning itself for growth with a backlog of $18.3 million, expecting bookings between $60 million and $80 million for the second half of the fiscal year. As EV sales grow, Aehr’s revenue is likely to stabilize, making it an attractive stock for growth investors in 2026. Consider the potential for strong returns with Aehr Test Systems.

Read more at Nasdaq: Here’s Why Shares in Aehr Test Systems Declined in December, But Looks a Great Buy Now