Aehr Test Systems Sinks 10%, Teradyne Falls 5%, FormFactor Drops 6%: What’s Hitting These Semiconductor Test Equipment Stocks?

Aehr Test Systems and Teradyne drop 10% and 5% as profit-taking hammers semiconductor test names following year-to-date gains of up to 510%. XSD slid just 2% versus test names' steep losses, confirming the selloff targets AI hardware winners rather than the broader chip market. CEO Gayn Erickson sold 40,000 Aehr shares for $5.2 million through a trust on August 12, though such sales typically reflect preplanned diversification.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Teradyne didn't make the cut. Grab the names FREE today. Shares of semiconductor test equipment names are sliding Wednesday morning as a broad derisking wave hits some of 2026's biggest chip winners.

Aehr Test Systems (NASDAQ:AEHR) stock is down 10% to $111.01, leading the group lower after one of the largest year-to-date runs anywhere in the sector. Teradyne (NASDAQ:TER) stock is down 5% to $383.80. FormFactor (NASDAQ:FORM) shares are down 6% to $117.27.

Cohu (NASDAQ:COHU) stock is down 6% to $55.73. The SPDR S&P Semiconductor ETF (NYSEARCA:XSD) is down 2% to $508.08, a much smaller decline that shows how concentrated the selling is in the test names. No company-specific catalyst has been reported for any of the four test-equipment stocks today.

The move reads as sector-wide profit-taking after enormous year-to-date gains, and the pullback comes despite relief in the bond market. The Treasury Department said it would increase buybacks of long-dated government debt "by at least double" for securities in the 10-year to 30-year sector, and the 30-year yield declined 8 basis points to 5.2% after hitting its highest level since 2007 earlier this week. Aehr Test Systems stock had entered Wednesday up 510% year to date through Tuesday's close, easily the largest run in this peer group.

That vertical move sets up an outsized reaction on any AI-hardware derisking day, and today the shares are giving back a chunk of that gain. The company designs wafer-level burn-in and test systems, including the FOX-P family, along with ultra-high-power packaged part burn-in systems in the Sonoma family, serving AI accelerators, GPUs, high-performance computing processors, and silicon carbide power semiconductors. Aehr Test Systems reported trailing twelve-month revenue of $50.9 million and a trailing twelve-month net loss of $7.1 million, with fiscal fourth quarter revenue of $18.8 million for the quarter ended May 29, up from $14.1 million a year earlier.