Cohu provides test and inspection equipment for semiconductors, including test and inspection handlers, MEMS test modules, test contactors, thermal sub-systems, and automated test equipment. These capital instruments are designed, built, and sold to semiconductor manufacturers and test subcontractors, with services and support contracts generating recurring revenue. Cohu differentiates itself through an integrated portfolio that spans multiple test stages—handling, MEMS testing, contactors, and thermal subsystems—paired with a global service footprint. Its goal is to help customers reliably test and validate semiconductor devices across automotive, consumer, industrial, and medical applications to improve quality and yield.
Company Size
1,001-5,000
Company Stage
IPO
Headquarters
Poway, California
Founded
1945
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Have you overlooked Nvidia and Micron Technology? This high-potential semiconductor stock may surge in the coming years. Table of Contents Key points. * Semiconductor manufacturers are engaging in an expansive race to enhance production capabilities to satisfy the demands of artificial intelligence (AI) clientele. * This growth surge is proving advantageous for downstream equipment producers such as Cohu, renowned for its advanced testing, handling, and inspection machinery developed specifically for state-of-the-art AI chips. * Cohu's revenue trajectory is rapidly accelerating, with a burgeoning sales pipeline poised to bolster its financial outcomes further. Investors eager to capitalize on the burgeoning spending on AI data centers are flocking to companies like Nvidia and Micron Technology. Their appeal is evident; after all, Nvidia's shares have surged by 900% over the last five years, while Micron has astonishingly increased by 1,300%. Nevertheless, the most substantial future returns may well emanate from suppliers of semiconductor equipment and components. Enter Cohu (NASDAQ: COHU). This firm provides essential testing and handling machinery pivotal in quality assurance, ensuring that chips meet standards and are devoid of defects prior to dispatch. At the close of trading on Friday, September 25, Cohu's market capitalization stood at a mere $3.2 billion. However, indications suggest strong prospects for an uptick in value in the forthcoming years. Missed Nvidia in 2009? A Rare Signal Is Illuminating Again. The "Double Down" signal for a relatively obscure chipmaker, Nvidia, emerged in 2009. Today, an analogous "Total Conviction" signal is visible for a company 1/100th Nvidia's size. Cohu is rapidly increasing its production capacity. Cohu supplies equipment to some of the leading semiconductor fabrication companies globally, including Taiwan Semiconductor Manufacturing, Intel, and Samsung. The potential of AI could herald one of the company's most lucrative opportunities, particularly through its Eclipse and Neon product lines. The Eclipse platform is designed to handle critical data center chips integral to AI workflows, encompassing graphics processing units (GPUs), central processing units (CPUs), and high-bandwidth memory (HBM). This machinery autonomously retrieves completed semiconductors immediately post-production and places them in test sockets that mimic real-world conditions to ascertain their operational efficacy. The automation inherent in this testing is paramount, as human intervention would considerably impede the production flow. The Neon inspection and metrology platform, conversely, scrutinizes the physical integrity of memory chips. Employing AI software and infrared vision, it discerns minuscule cracks and defects in semiconductor wafers, safeguarding against the shipment of flawed chips. Neon possesses the capability to detect irregularities as diminutive as 1 micron - imperceptible to the naked eye. To provide perspective, a human hair is approximately 70 microns wide. The demand for both product lines is experiencing a meteoric rise, propelled by the AI explosion. Cohu is diligently working to augment its production capacity at its flagship plants in Malaysia, targeting a doubling by the end of 2026, with plans for further increases in 2027. Accelerating revenue growth. Wall Street analysts estimate, as cited by Yahoo! Finance, that Cohu's total revenue is poised for a 35% growth trajectory, reaching $612 million by 2026. This marks a significant acceleration compared to the company's 13% growth rate in 2025, underscoring the robustness of the AI-induced uplift. Moreover, Cohu's future performance may further improve, bolstered by a $850 million sales pipeline originating from what it designates as the high-performance computing segment, primarily comprising clients in the AI semiconductor manufacturing realm. Noteworthy is that this pipeline, previously valued at $750 million earlier in the year, continues to expand. None of this revenue has yet manifested in Cohu's financial records, as customers remain in the preliminary engagement and qualification stages of the sales process. Thus, shareholders can anticipate a significant revenue spike for the company in the foreseeable future. Cohu stock may not be cheap, but upside potential remains. Cohu's stock has already surged by an impressive 188% this year. However, investors with a long-term perspective of at least five years could still realize substantial gains. Cohu presents a rather complex valuation challenge, as it does not consistently generate profits, which can render it seemingly expensive on the surface. Analysts project that Cohu will deliver adjusted (non-GAAP) earnings of $0.95 per share by 2026, resulting in a forward price-to-earnings (P/E) ratio of 70.5. For context, Nvidia currently boasts a P/E ratio of merely 28.4. Nevertheless, projections suggest Cohu's adjusted earnings could nearly double to $1.85 per share in 2027, resulting in a considerably more attractive forward P/E of 36.2. While it may not necessarily represent a bargain at that valuation, the expected growth trajectory of the company's earnings could underpin additional upside for its stock, particularly should equally optimistic forecasts for 2028 and 2029 emerge, bolstered by the substantial - and expanding - sales pipeline previously cited. For investors exploring opportunities within the AI infrastructure domain beyond mainstream stocks like Nvidia and Micron, considering Cohu as a portfolio addition could be prudent. Should you invest in Cohu stock now? Before investing in Cohu, reflect on the following: The Motley Fool Stock Advisor analyst team recently identified what they believe are the 10 best stocks for investors to buy now... and Cohu was not included among them. The selected stocks are projected to yield extraordinary returns in the coming years. Consider the historical context: when Netflix was featured on this list on December 17, 2004, a $1,000 investment at that time would have burgeoned to $379,123*! Similarly, Nvidia, which made the list on April 15, 2005, would have transformed a $1,000 investment into $1,396,103!* Presenting a noteworthy highlight, Stock Advisor's total average return stands at an impressive 933%, significantly outperforming the S&P 500's 212% return.
Aehr Test Systems and Cohu both operate in semiconductor testing but pursue different strategies. Aehr, with a $2.6 billion market cap, focuses on wafer-level and burn-in test solutions, whilst Cohu offers broader test and handling equipment. Nearly 95% of Aehr's fiscal 2026 revenues came from markets outside silicon carbide for electric vehicles. AI accelerators, CPUs and network processors accounted for about 71% of annual revenues, with silicon photonics contributing another 20%. In August 2026, Aehr received a $22 million follow-on production order from its lead AI processor customer for multiple fully automated FOX-XP wafer-level burn-in systems, FOX WaferPak contactors and Auto Aligners. The company is expanding into power semiconductors and memory applications, including NAND and HBM-related applications.
Cohu reported 38% year-over-year sales growth in Q2 2026, driven by strong demand for advanced thermal test handlers for AI processors and high-bandwidth memory inspection. The semiconductor test equipment maker raised its full-year revenue growth outlook to approximately 35%, implying revenues of $610 million to $615 million. Computing system orders surged 150% year-over-year, powered by the Eclipse handler's adoption in high-performance computing. The company increased its HPC revenue estimate to between $100 million and $110 million for fiscal 2026, with Q4 capacity largely committed. Cohu is expanding manufacturing capacity in Malaysia to increase HPC handler output by 50% by year-end 2026 and double it by mid-2027. The company projects Q3 revenue of approximately $170 million. Recurring revenue reached 53% of total sales. However, the automotive segment remains weak, with utilisation not expected to reach 80% until late Q1 or Q2 2027.
Cohu Q2 earnings call highlights. July 30, 2026 Key points. * Cohu's Q2 revenue rose 38% year over year to $149 million, exceeding the guidance midpoint, while non-GAAP gross margin reached 45.5% and EPS was $0.26. Management forecast Q3 revenue of approximately $170 million and raised its full-year 2026 growth outlook to about 35%, or roughly $610 million-$615 million. * High-performance computing demand accelerated sharply: computing orders increased 150% year over year, and Cohu raised its 2026 HPC revenue estimate to $100 million-$110 million. The company's HPC customer pipeline expanded to approximately $850 million, led by Eclipse handler opportunities. * Cohu is expanding manufacturing capacity in Malaysia and through suppliers, targeting a 50% increase in HPC handler output over the next six months and more than double the output by mid-2027. Automotive remains the weakest major market, with utilization not expected to reach 80% until late Q1 or Q2 2027. * MarketBeat previews top five stocks to own in August. Cohu NASDAQ: COHU reported second-quarter 2026 revenue of $149 million, up 38% from a year earlier and above the midpoint of its guidance, as demand for high-performance computing equipment and a recovery in several core semiconductor markets supported results. President and CEO Luis Müller said recurring revenue, primarily from consumables, represented approximately 53% of quarterly sales. The company cited customer adoption of its thermal test handlers for AI processors, high-volume manufacturing inspection products, automated test platforms for power and connectivity devices, and software analytics offerings. "Cohu is benefiting from durable demand drivers in AI infrastructure and edge computing," Müller said, pointing to customer investments aimed at managing higher power levels, improving production yield and increasing factory productivity. Utilization and orders improve in computing and industrial markets. Müller said estimated semiconductor test utilization rose sequentially to 80% at the end of the second quarter, a level that has historically marked a turning point for capital spending among the company's integrated device manufacturer customers. Computing and industrial utilization were in the low 80% range, while automotive and mobile utilization was in the high 70% range. Computing accounted for 46% of total system orders in the quarter, with orders rising 150% year over year, driven by growth in Eclipse handlers for high-performance computing applications. Industrial orders increased 87% from a year earlier, consumer orders rose 29%, mobile was essentially flat, and automotive orders fell 24%. The automotive market continues to lag other end markets in the current recovery cycle. Müller said he does not expect automotive utilization to reach 80% until late in the first quarter or the second quarter of 2027. CFO Jeff Jones said Cohu expects its third-quarter revenue increase to be split roughly evenly between high-performance computing and the company's core business, with each contributing about $10 million of growth sequentially. HPC pipeline expands; manufacturing capacity is being increased. Cohu raised its estimate for fiscal 2026 high-performance computing revenue to $100 million to $110 million, from its prior range of $80 million to $100 million. Müller said the increase is entirely tied to the Eclipse handler business rather than Neon inspection systems for high-bandwidth memory. Discover more Company News Derivatives The company now estimates its annual high-performance computing customer pipeline at approximately $850 million, including: * About $190 million of qualified annual opportunity across four customers, consisting of three high-performance computing customers and one HBM customer. * Approximately $250 million of active qualification opportunities across five customers. * Roughly $445 million of early-stage engagement across 10 additional customers. Müller said qualified customer opportunities range from roughly $30 million to $60 million annually per customer. One customer in the qualification group could receive official qualification within about a month, while another may complete its process around the middle of the first quarter of 2027, based on systems expected to ship in late August and an estimated six-month qualification process. To support expected demand, Cohu is expanding internal manufacturing in Malaysia and working with suppliers to increase capacity. The company expects to increase output for HPC handlers by about 50% over the six months following the second quarter and to more than double output by around mid-2027. Müller said the company could potentially triple output by the end of 2027 if market demand supports that expansion. Cohu also received a $26 million order early in the third quarter from a single customer for Eclipse systems, with much of that order expected to ship in the fourth quarter. The company said Eclipse lead times remain about 13 to 14 weeks to the first system shipment after receipt of an order, although larger orders are shipped across multiple weeks. Inspection, software and interface businesses advance. In inspection and metrology, Cohu shipped additional final inspection systems for HBM3, HBM4 and HBM4E devices to a U.S.-based integrated device manufacturer, with a strong forecast for the second half of 2026. The company also qualified its Neon platform at a Taiwan-based outsourced semiconductor assembly and test provider and introduced a shortwave infrared vision sensor designed to detect inner cracks in complex silicon devices. The company said its software analytics business recorded its first $1 million revenue quarter, while orders increased 140% year over year. Cohu is expanding a predictive-maintenance deployment with a high-performance computing chipmaker that Müller said is expected to become its largest software deployment with a single customer. Cohu also continued work on an on-site AI appliance that runs AI models and autonomous agents inside a customer's network, addressing semiconductor manufacturers' data sovereignty requirements. Interface solutions accounted for about 19% of consolidated second-quarter revenue. Cohu booked $500,000 of interface solutions for optical engine testing and is pursuing additional opportunities tied to co-packaged optical devices. The company plans to ship a handler-based qualification unit for optical-engine test by the end of 2026. Margins, balance sheet and outlook. On a non-GAAP basis, second-quarter gross margin was 45.5%, above guidance due primarily to favorable product mix. Operating expenses were $52.7 million, net interest income after interest expense and foreign-currency losses was approximately $1.7 million, and non-GAAP earnings per share were $0.26. Adjusted EBITDA margin was 12%. Cash and investments increased approximately $9 million during the quarter to $498 million, while cash from operations was $10 million. Total debt was $304 million, including $288 million related to the company's fourth-quarter 2025 convertible debt offering. Cohu did not repurchase shares during the quarter. For the third quarter, Cohu forecast revenue of approximately $170 million, plus or minus $7 million, representing growth of 14% sequentially and 35% year over year. The company expects third-quarter gross margin of approximately 45% and operating expenses of about $54 million. Cohu also raised its full-year 2026 revenue outlook to approximately 35% growth from the prior year, implying annual revenue of roughly $610 million to $615 million, according to management's discussion. Jones said fourth-quarter revenue would need to be approximately flat with the third quarter to reach that range. The company said rising demand has contributed to longer lead times and higher costs for certain semiconductors and specialty components, particularly memory. Cohu has made advance purchases where possible and has begun discussions with customers about passing along some higher costs. Management said its guidance incorporates current supply-chain risks and constraints. About Cohu (NASDAQ:COHU). Cohu, Inc is a global provider of semiconductor test and inspection solutions, offering a broad portfolio of products designed to support chip manufacturers, outsourced semiconductor assembly and test (OSAT) providers, and electronics original equipment manufacturers (OEMs). The company's product lineup includes automatic test handlers, wafer probers, test sockets, thermal subassembly systems and burn-in boards, all engineered to optimize throughput, accuracy and reliability in semiconductor production and final test. Founded in 1947 and headquartered in Poway, California, Cohu has grown through both organic development and targeted acquisitions to become a recognized leader in test handling and interconnect technologies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Cohu, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cohu wasn't on the list. While Cohu currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. MarketBeat just released its list of the 7 hottest IPOs expected to hit Wall Street in 2026. See which companies are preparing to go public and why investors are watching closely.
Cohu (NASDAQ:COHU) trading down 7.5% - time to Sell? July 27, 2026 Key points. * Cohu shares fell 7.5% to about $46.88, with trading volume down 93% from the average. The stock remains above its 200-day moving average but below its 50-day average. * Analysts maintain a generally positive outlook, with a consensus rating of "Moderate Buy" and an average price target of $63.86; several firms recently raised their targets to between $65 and $80. * Cohu's latest quarterly revenue rose 29.3% year over year to $125.12 million, beating estimates, but EPS of $0.01 missed expectations. Insiders have sold 89,668 shares worth about $4.2 million over the past 90 days. * MarketBeat previews the top five stocks to own by August 1st. Cohu, Inc. (NASDAQ:COHU - Get Free Report)'s share price traded down 7.5% during trading on Monday. The company traded as low as $47.56 and last traded at $46.8820. Approximately 77,835 shares were traded during mid-day trading, a decline of 93% from the average daily volume of 1,119,529 shares. The stock had previously closed at $50.70. Wall Street analyst weigh in. COHU has been the subject of a number of research reports. Stifel Nicolaus raised their target price on Cohu from $50.00 to $70.00 and gave the company a "buy" rating in a research note on Friday, July 10th. B. Riley Financial raised their price objective on shares of Cohu from $60.00 to $65.00 and gave the company a "buy" rating in a research report on Wednesday, July 22nd. Evercore reaffirmed an "outperform" rating and issued a $53.00 target price on shares of Cohu in a research note on Tuesday, April 28th. Robert W. Baird started coverage on shares of Cohu in a research report on Wednesday, July 8th. They set an "outperform" rating and a $65.00 target price on the stock. Finally, TD Cowen increased their price target on shares of Cohu from $60.00 to $80.00 and gave the company a "buy" rating in a research note on Tuesday, June 16th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Cohu presently has a consensus rating of "Moderate Buy" and an average target price of $63.86. Cohu stock down 8.1%. The firm has a 50 day moving average price of $56.71 and a 200-day moving average price of $41.90. The firm has a market cap of $2.20 billion, a price-to-earnings ratio of -39.11 and a beta of 1.55. The company has a debt-to-equity ratio of 0.37, a current ratio of 6.43 and a quick ratio of 5.31. Cohu (NASDAQ:COHU - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The semiconductor company reported $0.01 EPS for the quarter, missing analysts' consensus estimates of $0.03 by ($0.02). Cohu had a negative return on equity of 3.50% and a negative net margin of 11.54%.The firm had revenue of $125.12 million during the quarter, compared to analyst estimates of $122.14 million. During the same quarter in the previous year, the business earned ($0.02) earnings per share. Cohu's revenue for the quarter was up 29.3% compared to the same quarter last year. As a group, equities analysts predict that Cohu, Inc. will post 0.17 EPS for the current fiscal year. Insider activity at Cohu. In other news, Director Steven J. Bilodeau sold 10,257 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $44.85, for a total value of $460,026.45. Following the transaction, the director owned 52,272 shares of the company's stock, valued at $2,344,399.20. This represents a 16.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Luis A. Muller sold 45,154 shares of the firm's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $46.62, for a total value of $2,105,079.48. Following the transaction, the chief executive officer owned 927,619 shares in the company, valued at approximately $43,245,597.78. This trade represents a 4.64% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 89,668 shares of company stock worth $4,210,016. 3.05% of the stock is owned by company insiders. Institutional investors weigh in on Cohu. A number of hedge funds have recently modified their holdings of COHU. Vanguard Personalized Indexing Management LLC grew its position in shares of Cohu by 2.1% in the 4th quarter. Vanguard Personalized Indexing Management LLC now owns 16,231 shares of the semiconductor company's stock valued at $378,000 after purchasing an additional 332 shares during the period. Sheets Smith Wealth Management boosted its holdings in shares of Cohu by 3.0% in the first quarter. Sheets Smith Wealth Management now owns 14,644 shares of the semiconductor company's stock valued at $448,000 after buying an additional 420 shares during the period. US Bancorp DE boosted its holdings in shares of Cohu by 4.6% in the third quarter. US Bancorp DE now owns 9,847 shares of the semiconductor company's stock valued at $200,000 after buying an additional 432 shares during the period. Farther Finance Advisors LLC increased its position in shares of Cohu by 45.0% during the fourth quarter. Farther Finance Advisors LLC now owns 1,456 shares of the semiconductor company's stock worth $34,000 after acquiring an additional 452 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co increased its position in shares of Cohu by 0.9% during the second quarter. CANADA LIFE ASSURANCE Co now owns 65,233 shares of the semiconductor company's stock worth $1,255,000 after acquiring an additional 576 shares in the last quarter. Institutional investors and hedge funds own 94.67% of the company's stock. About Cohu. Cohu, Inc is a global provider of semiconductor test and inspection solutions, offering a broad portfolio of products designed to support chip manufacturers, outsourced semiconductor assembly and test (OSAT) providers, and electronics original equipment manufacturers (OEMs). The company's product lineup includes automatic test handlers, wafer probers, test sockets, thermal subassembly systems and burn-in boards, all engineered to optimize throughput, accuracy and reliability in semiconductor production and final test. Founded in 1947 and headquartered in Poway, California, Cohu has grown through both organic development and targeted acquisitions to become a recognized leader in test handling and interconnect technologies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Before you consider Cohu, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cohu wasn't on the list. While Cohu currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2026. Explore companies poised to replicate the growth, innovation, and value creation of the tech giants dominating today's markets.