This report analyzes the market performance of two key AI-related companies, Aehr Test Systems and Figma, detailing their growth trajectories, financial health, and the broader market implications, including the impact of regulatory decisions on tech acquisitions and the evolving landscape of the AI sector.

Technology Sector Navigates AI Innovation and Regulatory Hurdles

U.S. equities have recently shown a concentrated focus on specific artificial intelligence (AI)-related companies, with Aehr Test Systems (AEHR) demonstrating a notable rebound in its stock performance and Figma (FIG) navigating significant post-IPO volatility alongside regulatory challenges. This comes as the broader Technology Sector continues its adaptation to the accelerating influence of AI innovation and increased scrutiny from antitrust regulators.

Aehr Test Systems: A Strategic Pivot to AI Chip Testing

Aehr Test Systems, a long-standing entity in semiconductor testing, has undergone a strategic shift to align with the demands of the AI era. Historically focused on silicon carbide (SiC) wafer-level burn-in testing, the company has pivoted aggressively toward AI-specific solutions. This reorientation has contributed to a notable recovery in its stock, which had previously declined from over $50 in 2023 to below $7 in 2025, before rebounding to $26.21.

Financially, Aehr reported net revenue of $18.3 million in Q3 2025, marking a 140% increase from $7.6 million in the same period in 2024. This growth was primarily driven by demand for its Sonoma ultra-high-power test systems, tailored for AI processors. The company's backlog also surged to $15 million as of May 2025, up from $7 million in 2024, reflecting increasing interest in its capabilities for testing vertically integrated, or “stacked,” AI chips used in data centers. Despite these advancements, fiscal 2025 saw a decrease in total revenue to $59 million from $66 million in 2024, accompanied by an operating loss of $6 million, contrasting with a $10 million profit in the previous fiscal year. Aehr has also launched its first production wafer level burn-in (WLBI) system specifically for AI processors and acquired Incal Technology to broaden its test solutions.

Figma: High Growth, Valuation Scrutiny, and Regulatory Intervention

Figma, a cloud-based design software company, experienced a highly anticipated initial public offering (IPO) on July 31, with shares priced at $33. The stock quickly tripled, reaching highs over $122, before settling around $70, resulting in a market capitalization of $34 billion as of early September. This initial surge reflected strong investor enthusiasm for its rapid growth and product superiority.

Figma has demonstrated robust sales expansion, growing from $500 million in 2023 to $750 million in 2024, and reaching $820 million over the last 12 months. Its Q2 2025 revenue surged 41% year-over-year to $249.6 million, and the company reported a net income of $28.2 million for the quarter. However, the market's initial exuberance has been tempered by concerns over its valuation multiples and its long-term path to sustained profitability. While its Rule of 40 score (63) surpasses peers like Adobe and Shopify, indicating a strong blend of growth and profitability, its forward price-to-sales (P/S) ratio of 34 times on a forward basis remains significantly higher than Adobe's 7 times sales.

A significant event for Figma was the attempted $20 billion acquisition by Adobe, which was mutually terminated on December 18, 2023, after regulators in the European Commission and the UK Competition and Markets Authority concluded there was no clear path to approval. Adobe subsequently paid Figma a $1 billion termination fee. Regulators cited concerns over reduced competition in design software markets, the elimination of a significant competitive threat, and the potential for a "reverse killer acquisition," where Adobe might have discontinued its own interactive product design tool, Adobe XD. This regulatory intervention has intensified competition within the graphic design software market.

Analysis of Market Dynamics and Regulatory Impact

Aehr Test Systems' recent recovery underscores the market's responsiveness to companies making strategic shifts towards high-growth AI niches. Its focus on the technically complex and underserved area of stacked AI chip testing, coupled with a growing backlog, has fueled investor optimism despite recent operational losses. This suggests that despite some historical volatility, the market sees undervaluation in its specialized offerings within the Semiconductor Industry.

Conversely, Figma's journey highlights the dual-edged nature of high-growth valuations in the tech sector. While its strong revenue growth and market penetration are undeniable, the subsequent correction in its stock price reflects investor caution regarding elevated expectations and the challenge of converting rapid expansion into consistent profitability. The blocked acquisition by Adobe serves as a potent example of increasing regulatory scrutiny on mergers and acquisitions in the Technology Sector, particularly those involving dominant players acquiring innovative disruptors. This decision sets a significant precedent, signaling a firm stance by global antitrust regulators against deals perceived to stifle competition and innovation, ultimately benefiting the broader market by fostering a more competitive landscape.

Looking Ahead

For Aehr Test Systems, future performance will likely be tied to continued demand for AI processors and the company's ability to expand into new areas like Gallium Nitride (GaN) power semiconductors and silicon photonics. Management anticipates order growth across most segments in fiscal 2026, driven by ongoing research and development efforts.

For Figma, the critical factors to watch will be its continued revenue growth, its ability to improve profitability amidst intense competition with Adobe, and how it navigates investor expectations regarding its high valuation multiples. The broader implications of the blocked Adobe-Figma merger will continue to influence M&A strategies within the Technology Sector, with companies facing heightened regulatory hurdles when attempting to acquire promising, innovative firms. The evolving landscape of AI innovation will remain a primary driver of market sentiment and investment opportunities in the coming periods.", image_alt_tags=[