KLA beats Aehr as better AI stock pick, Motley Fool says

The comparison comes as investors look for ways to gain exposure to artificial intelligence beyond the headline chipmakers. Aehr Test Systems serves the high-growth silicon carbide market for electric vehicles and high-bandwidth memory for AI infrastructure, but its fiscal 2026 results show the risks of that niche: revenue fell 15.2% to $50.0 million, and the company swung to a $7.1 million net loss. Its five largest customers accounted for nearly 70% of net sales, exposing it to the capital spending cycles of a handful of buyers.

KLA, by contrast, provides process control tools across the entire chip-making industry. Its scale showed in fiscal 2026, with revenue up 11.7% to $13.6 billion and net income of $4.8 billion. Its services business, about 23% of revenue, adds a recurring stream. KLA is not without concentration risk, as Taiwan Semiconductor Manufacturing Company accounts for more than 10% of revenues, and it faces competition from Applied Materials and Lasertec.

The valuation gap is stark: Aehr trades at a much higher multiple despite its net loss, while KLA's forward P/E is 33.1x. The Motley Fool's pick hinges on whether Aehr's record bookings of $60.7 million and fourth-quarter sales of $18.8 million can translate into sustained profitability, or whether KLA's steady profit and dividend will continue to look safer for AI exposure.