Atlas Prime

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 28, 2026

Research memo

COHU closed at $41.26 on April 17, up 4.8% on the day, 10.5% over the week, and 35.46% over the past month. The stock is extended, but the move still tracks the same setup: Cohu sells semiconductor test-and-handler equipment, and the market is now paying for a cleaner recovery in chip sorting and validation demand.

Hard data

  • Market cap: $3.16 billion
  • Enterprise value: $2.99 billion
  • Revenue: $452.96 million
  • Gross margin: 45.4%
  • Next revenue growth: 25.7%
  • EV/revenue: 6.6x
  • 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 74)

Thesis

Cohu’s chokepoint is semiconductor test and handling: the company sells the tools that move, test, and bin chips before shipment, so orders turn when device makers raise output or increase test intensity. The stock already prices a solid cyclical recovery at 6.6x enterprise value to revenue, but consensus may still be too conservative on how long that demand can stay firm and how much operating leverage shows up if gross margin holds near 45% while revenue keeps compounding. The best bear case is that this is still a cycle trade, not a durable re-rate, yet the next leg can still work if the upcycle broadens beyond a narrow set of sockets and carries through the next several quarters.

Bear case

The cleanest pushback is that Cohu is still exposed to capex timing, and the last 35% month can leave the stock priced for no stumble. If customer spending pauses, if the AI-related test rebound stays narrow, or if mix slips, the multiple is no longer cheap enough to cushion an earnings miss. In that case, the market will treat the move as a front-loaded cyclical bounce rather than the start of a longer rerating.

Invalidation

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

Trade framing

With the stock extended after a sharp monthly run, the better entry is usually a pullback rather than chasing strength. If volatility stays elevated, a bullish defined-risk structure centered below the recent breakout zone is the cleaner way to express the view than paying outright for momentum.