Aehr Test Systems vs. C3.ai: Which Technology Stock Is a Better Buy in 2026?
Both companies are burning cash and trading at steep multiples, but their paths to profitability, and their risks, couldn't be more different.
Overview
Aehr Test Systems (NASDAQ:AEHR) and C3.ai (NYSE:AI) both aim to capitalize on the artificial intelligence boom, but they operate on opposite ends of the technological spectrum. Which is the better buy?
Aehr focuses on the hardware side, providing essential testing equipment for chips used in high-growth markets like electric vehicles and data centers. C3.ai provides the software layer, helping massive organizations deploy predictive artificial intelligence applications. Both companies are navigating a shifting landscape where rapid innovation meets lumpy revenue cycles.
Details
Aehr Test Systems designs and sells specialized equipment used to test chips at the wafer level to identify defects before they reach final assembly. The company is a niche player among semiconductor stocks, providing essential testing equipment for silicon carbide chips. Customer concentration like this adds a layer of risk to the business, as its five largest customers accounted for roughly 70% of net revenues in fiscal 2026.
Source
Originally published at www.fool.com.