AEHR at 18.59X Sales: Market Loves Its AI Story, But is Love Blind?

Aehr Test Systems (AEHR) has surged 363% in 2026 driven by AI semiconductor testing demand, but now trades at 18.59X forward sales—over 3x its historical median. While the company has strong backlog ($100.6M) and positive analyst sentiment, the elevated valuation leaves minimal margin for error. Key risks include heavy customer concentration (70% from top 5 customers), execution challenges, and semiconductor spending cyclicality. The stock carries a Zacks Rank #3 (Hold) rating.