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CohuCOHU

Cohu, Inc. stands as a prominent global provider of advanced semiconductor test equipment and comprehensive associated services. Operating through its various subsidiaries, the company extends its reach across key international markets including China, the United States, Taiwan, Malaysia, and the Philippines. Its diverse product portfolio caters to semiconductor and electronics manufacturers, as well as test subcontractors, encompassing crucial equipment such as automated test equipment (ATE) for both wafer-level and device package testing, and a wide array of test and inspection handlers. These handlers include specialized pick-and-place, turret, gravity, strip, and advanced micro-electromechanical system (MEMS) and thermal sub-systems. Cohu also offers vital interface components like test contactors, probe heads, and pins. Beyond hardware, Cohu delivers extensive post-sales support, including spare parts and kits, robust parts and labor warranties for its systems and instruments, and essential training for system maintenance and operation. The company further provides application and data management software, alongside expert consulting services related to its product offerings. A significant technological offering is the DI-Core data analytics product suite. This sophisticated software is engineered to optimize the performance of Cohu equipment, facilitating real-time online monitoring and precise process control. Cohu distributes its solutions through a combination of its direct sales force and a network of independent sales representatives. Established in 1947, the company originally operated as Cohu Electronics, Inc. before adopting its current name, Cohu, Inc., in 1972. Its corporate headquarters are located in Poway, California.

Last
$41.26
1D
4.8%
1W
10.5%
1M
35.5%
Next earnings: October 29, 2026

Research memo

COHU closed at $41.26, up 4.8% on the day, 10.5% over the week, and 35.46% over the past month. The move leaves the stock extended, but the tape is still being driven by the same setup: Coherent supplies semiconductor test-and-handler equipment used to sort and validate chips, and the market is starting to price a cleaner revenue upcycle into the name.

Hard data

  • Market cap: $2.26 billion
  • Enterprise value: $2.09 billion
  • Revenue: $453.0 million
  • Gross margin: 45.4%
  • Next revenue growth: 25.7%
  • EV/revenue: 4.6x
  • As of 2026-04-17 close: $41.26
  • 1-day move: +4.8%
  • 1-week move: +10.5%
  • 1-month move: +35.46%
  • Market tone: Greed (Fear & Greed Index 69)

Thesis

The chokepoint is semiconductor test and handling: Coherent sells the equipment that moves, tests, and bins chips before shipment, and that business snaps back when device makers lift output or refresh test intensity. The stock already discounts a solid cyclical recovery at 4.6x enterprise value to revenue, so the easy money from simply not missing the recovery is largely in. What still looks underappreciated is the operating leverage if test demand stays firm through the next several quarters: revenue can accelerate while gross margin holds in the mid-40s, which turns modest top-line upside into much larger earnings revision potential.

Bear case

The best pushback is that this is still a cyclical equipment name with timing risk, not a structural re-rating. If customer capex pauses, if AI-related demand fails to broaden beyond a narrow set of sockets, or if mix turns less favorable, the recent run can unwind fast because the multiple is no longer cheap enough to absorb a stumble. In that case, the market will treat the stock as a clean cycle trade that got ahead of itself.

Invalidation

The setup is broken if next-quarter revenue growth slips materially below the current 25.7% growth path, gross margin rolls back toward the low-40s, or management signals that order momentum is not sustaining into the next two quarters.

Trade framing

With the stock extended after a 35% monthly move, upside from here looks better on pullbacks than chasing. If volatility stays elevated, the cleaner expression is to wait for consolidation or use defined-risk structures around the 4.6x EV/revenue base rather than paying peak momentum premium.