Aehr Test Systems (NASDAQ:AEHR) shares jumped on Tuesday after the company secured a follow-on FOX-XP production order from its lead silicon photonics customer.

The move also lines up with a risk-on session in growth, with the Nasdaq up 2.27% as markets stay open.

• Aehr Test System shares are climbing with conviction. Why is AEHR stock up today?

Order Supports Production Expansion

The customer will use the automated multi-wafer burn-in system to expand silicon photonic integrated circuit production.

The circuits support optical transceivers and chip-to-chip optical input/output applications.

The system includes nine WaferPak test blades, each delivering up to 3,500 watts, plus automated alignment, handling, loading and unloading.

Aehr expects shipment during the first half of 2027.

AI Demand Drives Opportunity

Aehr said rising AI infrastructure demand is expanding silicon photonics use across optical switching, co-packaged optics and linear pluggable optics.

Wafer-level burn-in can identify defects before packaging, improve yields, lower costs and support long-term reliability.

"This production order is another indication that silicon photonics is moving from technology adoption into manufacturing scale-up, and we believe that transition represents a significant long-term growth opportunity for Aehr," CEO Gayn Erickson said.

The FOX-XP platform supports burn-in and reliability screening for silicon photonics, silicon carbide semiconductors, AI processors and other advanced devices.

Read Also: Aehr CEO Says AI Will Be Bigger Piece of Business as Orders Keep Rolling In

AEHR Technical Outlook: Momentum and Key Chart Levels

AEHR is trading 25.7% above its 20-day SMA of $80.33 and 87.8% above its 200-day SMA of $53.77. That keeps the long-term uptrend intact, though the stock appears stretched after its recent advance.

The 20-day SMA remains below the 50-day SMA, a bearish crossover that suggests bulls may need the stock to hold recent gains before shorter-term averages turn higher.

Momentum is improving, with MACD above its signal line and the histogram in positive territory. That indicates buyers are regaining control and downside pressure is easing.

Traders may watch whether AEHR can consolidate above prior breakout levels. The 52-week high of $126.62 remains overhead, while the June swing high could also act as resistance.

  • Key Resistance: $110 — Nearby round-number level where rebounds may stall.
  • Key Support: $84.50 — Near the 20-day EMA of $83.56 and a potential trend-support zone.

AEHR Stock Price Activity: Aehr Test System shares were up 16.84% at $107.15 at the time of publication on Tuesday, according to Benzinga Pro data.

Photo: Pavel Kapysh / Shutterstock.com