Cohu

COHU

Market cap $2.41B

SAN DIEGO--(BUSINESS WIRE)--Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, will release financial results for second quarter 2026 on Thursday, July 30, 2026, at 1:00 p.m. Pacific Time/4:00 p.m. Eastern Time. The Company will host a live conference call and webcast with presentation materials to discuss the results at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time. Interested parties may listen live via webcast.

I rate Cohu a Strong Buy with an $83 price target, reflecting 57% upside from current levels. COHU is expanding into AI processor testing, high-bandwidth memory inspection, power management, and analytics, targeting a $1.6B serviceable market. Eclipse, Neon, Diamondx, PAICe software, and improving utilization could add about $1.05 of incremental EPS and lift my 2027 non-GAAP EPS estimate to $1.63.

He feels the company is well-positioned to capitalize on the current feverish build-out of AI capacity. He's also flagged it as a business that can weather semiconductor sector dips.

Futures are trading mixed after another tough day across Wall Street, with all the major indices crushed early on, before the Nasdaq made a late-afternoon push to wind up just modestly higher at 25,870, up 0.20%.

I rate Cohu a buy, as its AI/HPC pipeline and recurring revenue base are underappreciated in current earnings. COHU's products address the increasing complexity of AI and high-performance computing chip testing, positioning it for significant revenue growth. Management targets $600–800M revenue, 48–50% gross margin, and $1.50–$3.25 non-GAAP EPS mid-term, with upside if the AI/HPC funnel converts.

CFO Jeffrey Jones sold 13,000 shares for a total value of approximately $609,000 on May 22, 2026. This transaction represented 3.64% of Jones' direct holdings at the time of sale.

COHU is gaining AI and HBM momentum as test demand recovers, but customer qualifications, ramps and execution remain key to the story.

COHU's rally reflects AI and HPC momentum, but richer valuation and early profit recovery make execution risks harder to ignore.

Cohu's AI and HPC opportunities are growing, but the stock outlook still hinges on execution, HBM traction and stronger profitability follow-through.

Director Steven Bilodeau sold 10,257 shares for a transaction value of ~$460,000 on May 20, 2026, at a reported price of $44.85 per share. This sale represented 16.40% of his direct holdings at the time, reducing his directly owned shares from 62,529 to 52,272.