Semiconductor Test Equipment Stocks Drop Amid Profit-Taking and AI Hardware Derisking
Shares of semiconductor test equipment companies Aehr Test Systems, Teradyne, FormFactor, and Cohu are declining sharply on August 19, with losses ranging from 5% to 10%. The selloff is attributed to broad profit-taking following significant year-to-date gains in these stocks. While the broader chip market remains relatively stable—evidenced by a smaller decline in the SPDR S&P Semiconductor ETF—the drop appears concentrated among test equipment names, which have benefited from increased demand tied to AI hardware development. Aehr Test Systems led the selloff after rising 510% year-to-date. The company designs wafer-level and high-power burn-in systems used for testing advanced semiconductors like GPUs and silicon carbide devices. CEO Gayn Erickson sold $5.2 million worth of shares through a trust, though such transactions are typically part of preplanned diversification strategies. The decline comes despite easing in the bond market following Treasury Department actions to increase buybacks of long-dated debt.
Tickers: $AEHR $COHU $FORM $TER