Aehr Test SystemsAEHR -7.10%62 Gross Margin % is 32.66% as of Feb. 2026, which is 16% below its 10-year median of 39.07. GuruFocus rates AEHR with a GF Score™ of 62/100 and a GF Value™ of $14.36 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,011 Semiconductors companies, Aehr Test Systems ranks better than 52.03% on this metric.
The historical rank and industry rank for Aehr Test Systems's Gross Margin % or its related term are showing as below:
AEHR'
s Gross Margin % Range Over the Past 10 Years
Min: 30.72 Med: 39.07 Max: 50.41
Current: 30.72
During the past 13 years, the highestGross Margin % of Aehr Test Systems was 50.41%. The lowest was 30.72%. And the median was 39.07%.
AEHR's Gross Margin % is ranked better than 52.03% of 1011
companies
in the Semiconductors industry
Industry Median: 29.61
vs AEHR: 30.72
Aehr Test Systems had a gross margin of 32.66% for the quarter that ended in Feb. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Aehr Test Systems was 4.00% per year.
Aehr Test Systems (NAS:AEHR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Aehr Test Systems had a gross margin of 32.66% for the quarter that ended in Feb. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Aehr Test Systems Gross Margin % Related Terms
Aehr Test Systems Gross Margin % Historical Data
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The historical data trend for Aehr Test Systems's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AEHR vs AMBA, ICHR, COHU: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Aehr Test Systems's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Aehr Test Systems Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Aehr Test Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Aehr Test Systems's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Aehr Test Systems (AEHR) has a Gross Margin % of 32.66% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Aehr Test Systems and its competitors. This is 16% below median its historical median of 39.07. Over the past decade, Aehr Test Systems' Gross Margin % has ranged from 30.72 to 50.41. According to the industry distribution chart, Aehr Test Systems ranks #485 out of 1011 companies in the Semiconductors industry, placing it in the top 48%.
Is Aehr Test Systems' Gross Margin % too high?
Aehr Test Systems' current Gross Margin % of 32.66% is 16% below median its 10-year median of 39.07. Over the past 10 years, this metric has ranged from a low of 30.72 to a high of 50.41. The Semiconductors industry median Gross Margin % is 29.61. Aehr Test Systems' value of 32.66% is 10.3% above this industry median. Based on the distribution chart, Aehr Test Systems ranks #485 out of 1011 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Aehr Test Systems has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aehr Test Systems' Gross Margin % compare to AMBA and ICHR?
According to the Semiconductors industry distribution chart, Aehr Test Systems ranks #485 out of 1011 companies for Gross Margin %. This puts Aehr Test Systems in the upper half of its industry. The industry median Gross Margin % is 29.61. Aehr Test Systems' value of 32.66% is 10.3% above this benchmark. Historically, Aehr Test Systems' own Gross Margin % has ranged from 30.72 to 50.41 over the past decade. While the company's 10-year median is 39.07 vs. the industry median of 29.61, Aehr Test Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aehr Test Systems's current Gross Margin % of 32.66% is 10.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Aehr Test Systems and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aehr Test Systems's current Gross Margin % is 32.66%, which is 16% below median its own 10-year median of 39.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aehr Test Systems stock overvalued right now?
Based on GuruFocus' analysis, Aehr Test Systems (AEHR) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.36, compared to a current price of $91.81 — trading 539.3% above its estimated fair value. The current Gross Margin % is 32.66%, which is 16% below median its 10-year median of 39.07 and 10.3% above the Semiconductors industry median of 29.61. Aehr Test Systems' overall GF Score™ is 62/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Aehr Test Systems (AEHR), the current Gross Margin % is 32.66% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Aehr Test Systems (AEHR) Overvalued in 2026?
Based on GuruFocus' analysis, Aehr Test Systems stock appears to be overvalued.
The current stock price of $91.81 is trading 539.3% above its estimated GF Value™ of $14.36.
GuruFocus considers Aehr Test Systems to be Significantly Overvalued.
Key valuation signals for AEHR:
Gross Margin %: 32.66% (16% below median its 10-year median of 39.07)
GF Value™: $14.36 vs. price of $91.81 (539.3% above fair value)
Industry Position: 10.3% above the Semiconductors median (#485 of 1011)
No single metric tells the full story. See the AEHR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aehr Test Systems is engaged in test systems for burning-in and testing logic, optical, and memory integrated circuits. Increased quality and reliability needs of the Automotive and Mobility integrated circuit markets. The Company operates in one business segment, the designing, manufacturing, marketing and selling of advanced test and burn-in products to the semiconductor manufacturing industry in several geographic areas. The company provides production solutions across the product manufacturing flow to improve yield and reliability and has developed and introduced several inventive products, including the ABTSTM and FOX-PTM families of test and burn-in systems and FOX WaferPakTM Aligner, FOX-XP WaferPak Contactor, FOX DiePak Carrier and FOX DiePak Loader.
62GF Score
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