Aehr Test Systems delivered a softer-than-anticipated Q2 FY2026 as revenue declined 27% year-over-year to $9.884 million, driven by weaker WaferPak shipments and a lean quarter for the WaferPak-based business, though demand was stronger for Sonoma high-power packaged-part burn-in systems. Management signaling and a strengthening multi-end-market cadence supported a reinstatement of guidance for the second half of fiscal 2026, with projected revenue of $25–$30 million and bookings running well above quarterly revenue (midpoint guidance around $70 million, with $60–$80 million in the second half expected by management). In the near term, Aehr dosed more follower demand into AI processors, silicon photonics, memory (including High Bandwidth Flash), GaN, and HDDs, while maintaining a sharpened focus on reliability solutions for AI and data-center infrastructure. The company closed the Incal facility consolidation, expanded automation in Sonoma, and advanced wafer-level burn-in benchmarks with leading AI processor suppliers, underscoring the strategic pivot toward higher-volume, higher-value burn-in solutions. The balance sheet remains healthy with roughly $31 million in cash and an ATM facility that provided $10 million gross proceeds in the quarter, underscoring management’s intent to support R&D and capacity expansion while retaining optionality. Looking ahead, Aehr’s path to meaningful revenue expansion hinges on AI wafer-level burn-in adoption, capacity expansions for Sonoma and FOX platforms, and the pace of multi-end-market deployments (AI, silicon photonics, memory). Investors should weigh the near-term margin compression and operating losses against a multi-year AI-driven addressable market opportunity that Aehr appears uniquely positioned to capture.