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On September 04, 2026, Cohu Inc COHU shares rose 10.4%, closing at $50.72. This price represents a significant increase amidst a 52-week range of $18.67 to $74.60.

GF Value™ verdict: Current price at $50.72 versus GF Value of $28.79 indicates a 76.2% overvaluation. GF Score™: 65/100, suggesting an above-average rating. Most notable signal: Insiders sold $6.3M in shares over the past 12 months, with no insider buying. Is COHU Overvalued or Undervalued? Cohu Inc is currently trading at a price of $50.72, which is significantly above its GF Value™ estimate of $28.79. This indicates that the stock is 76.2% overvalued, and investors may want to exercise caution. The GF Value™ is a proprietary intrinsic-value assessment derived from historical multiples, past growth rates, and expected future performance. When a stock is marked as significantly overvalued, it raises concerns about potential downside risk if market conditions change or investor sentiment shifts.

The substantial gap between the current price and the GF Value™ suggests a lack of margin of safety for new investors. Given Cohu's cash-flow-negative status, traditional earnings-based valuations (like P/E ratios) may not provide a reliable assessment. Instead, a Price-to-Sales (P/S) analysis, compared to its historical median of around 1.9x, could offer a more relevant perspective on the stock's valuation, especially since it has not generated consistent profits.

How Does COHU's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 27.5x (Forward) 17.8x (5-Year Median) COHU's current forward P/E ratio of 27.5x is significantly higher than its 5-year median of 17.8x. This indicates that the stock is trading above its historical valuation metrics, aligning with the GF Value™ assessment of being significantly overvalued. The elevated forward P/E suggests that market expectations are high, which may not be justified given the company's unprofitability.

What Does COHU's GF Score™ Tell Us? The GF Score™ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. With a GF Score™ of 65/100, Cohu stands in the above-average range, though there are notable strengths and weaknesses to consider.

Metric Rating GF Score™ 65/100 Financial Strength 6/10 Profitability 4/10 Growth 5/10 Valuation 3/10 Momentum 6/10 The strongest area for Cohu is its financial strength, rated at 6/10, indicating a stable balance sheet. However, the company's profitability rank of 4/10 and valuation rank of 3/10 signal challenges in generating profits and justify its current market price. These mixed scores reflect the company's potential but highlight significant risks due to its valuation metrics and lack of consistent profitability.

What Are Gurus and Insiders Doing with COHU? Currently, 7 gurus hold positions in Cohu, with 4 increasing their stakes while 3 have trimmed their holdings in recent quarters. This activity suggests a mixed sentiment among experienced investors. However, the notable insider selling of $6.3M without any buying raises concerns about confidence in the company's future prospects.

The insider activity indicates a cautionary stance from those within the company, which may suggest that insiders expect challenges ahead. This pattern of selling, without any offsetting purchases, could be interpreted as a signal of potential issues that investors should consider when evaluating their positions in Cohu.

What This Means for Investors In conclusion, based on the current GF Value™ of $28.79, Cohu Inc is significantly overvalued at $50.72. The lack of profitability and strong insider selling further emphasize the risks associated with investing in this stock at its current price level. Investors should remain cautious and consider the implications of overvaluation in their strategies.

For more detailed insights, visit the Cohu Inc COHU stock page and explore further resources on valuation and market analysis.

Frequently Asked Questions What is COHU's GF Score™?

COHU has a GF Score™ of 65/100, indicating an above-average rating that reflects its financial strength and growth potential, though profitability and valuation metrics are concerning.

Is COHU overvalued or undervalued?

According to the GF Value™, COHU is significantly overvalued at its current price of $50.72 compared to the estimated fair value of $28.79.

What is COHU's P/E ratio?

COHU has a forward P/E ratio of 27.5x, which is well above its 5-year median of 17.8x, indicating that it is trading at a higher valuation than historical norms.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Bank of Nova Scotia purchased a new stake in Cohu, Inc. (NASDAQ:COHU – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 82,352 shares of the semiconductor company’s stock, valued at approximately $6,087,000. Bank of Nova Scotia owned 0.17% of Cohu at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Hollencrest Capital Management acquired a new position in Cohu during the first quarter worth $31,000. Farther Finance Advisors LLC grew its holdings 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 valued at $34,000 after buying an additional 452 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Cohu during the fourth quarter worth about $34,000. Los Angeles Capital Management LLC bought a new stake in shares of Cohu during the fourth quarter worth about $37,000. Finally, Smartleaf Asset Management LLC raised its holdings in shares of Cohu by 202.7% in the 2nd quarter. Smartleaf Asset Management LLC now owns 2,113 shares of the semiconductor company’s stock worth $41,000 after acquiring an additional 1,415 shares during the last quarter. Institutional investors own 94.67% of the company’s stock.

Wall Street Analyst Weigh In A number of equities analysts have issued reports on the company. B. Riley Financial lifted their price target on Cohu from $65.00 to $69.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Weiss Ratings reissued a “sell (d-)” rating on shares of Cohu in a report on Friday, July 17th. Needham & Company LLC increased their price objective on Cohu from $54.00 to $65.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Stifel Nicolaus raised their target price on Cohu from $50.00 to $70.00 and gave the company a “buy” rating in a report on Friday, July 10th. Finally, TD Cowen lifted their target price on Cohu from $60.00 to $80.00 and gave the company a “buy” rating in a research report on Tuesday, June 16th. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Buy” and an average target price of $68.75.

View Our Latest Analysis on COHU Insider Transactions at Cohu In other Cohu news, Director Andrew M. Caggia sold 15,252 shares of the company’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $51.74, for a total transaction of $789,138.48. Following the sale, the director directly owned 64,778 shares of the company’s stock, valued at $3,351,613.72. This represents a 19.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Christopher Bohrson sold 10,000 shares of Cohu stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $55.82, for a total transaction of $558,200.00. Following the completion of the transaction, the senior vice president owned 159,702 shares of the company’s stock, valued at $8,914,565.64. The trade was a 5.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 30,307 shares of company stock worth $1,630,573. 3.05% of the stock is owned by company insiders.

Cohu Trading Down 1.3% Shares of COHU stock opened at $50.61 on Wednesday. The company has a quick ratio of 4.72, a current ratio of 5.74 and a debt-to-equity ratio of 0.37. The firm has a market cap of $2.40 billion, a P/E ratio of -60.98 and a beta of 1.59. The company has a 50 day moving average of $56.33 and a 200-day moving average of $45.57. Cohu, Inc. has a 12-month low of $18.67 and a 12-month high of $74.60.

Cohu (NASDAQ:COHU – Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The semiconductor company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.14 by $0.12. The business had revenue of $149.00 million for the quarter, compared to the consensus estimate of $144.20 million. Cohu had a negative return on equity of 1.96% and a negative net margin of 7.43%.Cohu’s revenue for the quarter was up 38.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.02 earnings per share. Sell-side analysts anticipate that Cohu, Inc. will post 0.47 earnings per share for the current year.

Cohu Profile (Free Report)

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.

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A Deep Dive into the Small-Cap Pioneer's Latest Moves, Including a -0.42% Impact from Exiting a Major StakeCharles M. Royce, a pioneer of small-cap investing an

On August 11, 2026, Cohu Inc (COHU) shares rose 6.8% today, with the stock currently trading at $52.79. Over the past year, COHU has seen significant volatility

Posted by Defense World Staff on Aug 4th, 2026

POET Technologies (OTCMKTS:POETF – Get Free Report) and Cohu (NASDAQ:COHU – Get Free Report) are both mid-cap technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Analyst Ratings This is a breakdown of current ratings and recommmendations for POET Technologies and Cohu, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score POET Technologies 0 0 0 0 0.00 Cohu 1 0 7 2 3.00 Cohu has a consensus price target of $68.75, suggesting a potential upside of 40.77%. Given Cohu’s stronger consensus rating and higher probable upside, analysts clearly believe Cohu is more favorable than POET Technologies.

Profitability This table compares POET Technologies and Cohu’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets POET Technologies N/A -88.82% -74.05% Cohu -7.43% -1.96% -1.30% Valuation and Earnings This table compares POET Technologies and Cohu”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio POET Technologies $4.43 million 575.87 -$18.17 million ($0.05) -139.80 Cohu $452.96 million 5.09 -$74.27 million ($0.83) -58.84 POET Technologies has higher earnings, but lower revenue than Cohu. POET Technologies is trading at a lower price-to-earnings ratio than Cohu, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership 94.7% of Cohu shares are held by institutional investors. 3.0% of Cohu shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk POET Technologies has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Cohu has a beta of 1.59, suggesting that its share price is 59% more volatile than the S&P 500.

Summary Cohu beats POET Technologies on 11 of the 15 factors compared between the two stocks.

About POET Technologies (Get Free Report)

POET Technologies, Inc. engages in the designing, developing, manufacturing and sale of opto-electronic solutions for the sensing, data communications and telecommunications markets. It developed POET Optical Interposer platform, which allows the integration of electronic and photonic devices into a single multi-chip module. The company was founded on November 14, 1985 and is headquartered in Toronto, Canada.

About Cohu (Get Free Report)

Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor manufacturers and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products. In addition, the company offers data analytics product that includes DI-Core, a software suite used to optimize Cohu equipment performance, which provides real-time online performance monitoring and process control. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. The company was incorporated in 1947 and is headquartered in Poway, California.

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Key Takeaways Cohu's Q2 revenues rose 38.4% to $149 million, while non-GAAP earnings reached 26 cents per share.Computing generated 41% of revenues and 46% of system orders, driven by Eclipse growth in HPC.Cohu raised its 2026 HPC revenue estimate to $100-$110 million and expects about 35% revenue growth. Cohu, Inc. (COHU - Free Report) reported better-than-expected second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company reported second-quarter 2026 non-GAAP earnings of 26 cents per share, which increased from 2 cents a year earlier and surpassed the Zacks Consensus Estimate by 85.7%.

Revenues rose 38.4% year over year to $149 million, beating the consensus mark by 3.5%. Results benefited from stronger high-performance computing demand, higher tester and recurring revenues and a favorable product mix. Estimated semiconductor test cell utilization improved sequentially to 80% in the second quarter, supporting broader equipment demand.

COHU's Revenue Mix Shows Computing StrengthRecurring revenues were approximately $78 million, representing 53% of total revenues. Systems revenues were about $71 million, accounting for the remaining 47%, as improved demand from core integrated device manufacturers supported the quarter.

Computing contributed 41% of revenues, followed by automotive at 22%, industrial at 16%, consumer at 11% and mobile at 10%. Computing also generated 46% of system orders, which increased 150% year over year, driven by Eclipse growth in high-performance computing.

Cohu Expands AI Compute OpportunityCohu raised its annual AI-driven compute opportunity pipeline to approximately $850 million. The total includes roughly $650 million in systems opportunities and $200 million in recurring opportunities across device kits, thermal upgrades, maintenance and software.

Management increased its 2026 high-performance computing revenue estimate to $100-$110 million from the prior $80-$100 million range. The increase was entirely tied to Eclipse handlers, reflecting stronger adoption for high-power processors used in data centers.

COHU Advances Inspection and Software GrowthCohu shipped additional final inspection systems for HBM3, HBM4 and HBM4E devices to a U.S.-based integrated device manufacturer. The company also qualified its Neon platform at a Taiwan-based outsourced semiconductor assembly and test provider, opening additional advanced packaging and AI-related inspection opportunities.

Software analytics delivered its first $1 million revenue quarter, while orders climbed 140% year over year. The company is expanding predictive maintenance deployments and advancing an on-site AI appliance that keeps process, yield and equipment data inside customer factories.

Cohu’s Margins Benefit From Favorable MixNon-GAAP gross margin was 45.5%, up from 44.4% in the year-ago quarter. The upside reflected a favorable product mix, including stronger tester and recurring revenues.

Non-GAAP operating expenses increased to $52.7 million from $47.7 million a year earlier. The increase reflected continued investment in resources supporting the expanding high-performance computing pipeline. Adjusted EBITDA margin improved to 12.3% from 3.6%.

COHU Builds Capacity for HPC DemandCohu is expanding its manufacturing infrastructure to double high-performance computing output by the end of 2026 and support another capacity increase by mid-2027. The investment is intended to accommodate additional Eclipse production as customer programs move through qualification.

Supply-chain execution remains a key focus. Longer lead times and higher costs for certain integrated circuits and specialty components are pressuring inputs, although the company has used advance purchases to secure critical supplies and protect delivery schedules.

Cohu's Balance Sheet Supports ExpansionCohu ended the second quarter with cash and investments of $498.2 million, up from approximately $489 million at the end of the first quarter. Cash flow from operations was $10.5 million.

Total debt was $304 million, including $288 million from the fourth-quarter 2025 convertible note offering. The company continues to target capital expenditures at about 2% of revenues in 2026, including spending on its Malaysia manufacturing expansion.

COHU Guides Higher on Broad-Based RecoveryFor the third quarter of 2026, Cohu expects revenues of $170 million, plus or minus $7 million. The midpoint implies 14.1% sequential growth and 35% year-over-year growth, with roughly half of the sequential increase expected from high-performance computing and half from the core business.

The company projects a non-GAAP gross margin of about 45%, operating expenses of roughly $54 million and an adjusted EBITDA margin near 16%. The Zacks Consensus Estimate for third-quarter 2026 revenues and earnings is currently pegged at $148.5 million and 24 cents per share, respectively.

For 2026, management raised its revenue growth outlook to approximately 35% year over year and maintained its gross-margin forecast in the mid-40% range. The Zacks Consensus Estimate for 2026 revenues and earnings is currently pegged at $559.75 million and 60 cents per share, respectively.

COHU’s Zacks Rank and Other Stocks to ConsiderCurrently, Cohu carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are AppFolio (APPF - Free Report) , Amkor Technology (AMKR - Free Report) and Amphenol (APH - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of AppFolio have plunged 24.4% year to date. The Zacks Consensus Estimate for APPF’s 2026 earnings is pegged at $6.90 per share, up by 2.2% over the past seven days, indicating an increase of 30.4% year over year.

Shares of Amkor Technology have jumped 23.1% year to date. The Zacks Consensus Estimate for AMKR’s 2026 earnings is pegged at $2.40 per share, up by 15.4% over the past seven days, indicating a rise of 60% year over year.

Amphenol shares have surged 18.1% year to date. The Zacks Consensus Estimate for APH’s 2026 earnings is pegged at $4.95 per share, up by 8 cents over the past seven days, indicating an increase of 48.2% year over year.

-

Second quarter net sales increased 38% year-over-year to $149.0 millionGross margin of 45.4%; non-GAAP gross margin of 45.5%Estimated test cell utilization increased sequentially to 80% at the end of JuneRaising annual AI-driven compute opportunity pipeline to approx. $850 million SAN DIEGO--(BUSINESS WIRE)--Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today reported fiscal 2026 second quarter net sales of $149.0 million and GAAP loss of $0.2 million or $0.00 per share. Net sales for the first six months of 2026 were $274.1 million and GAAP loss was $12.2 million or $0.26 per share.

Cohu also reported non-GAAP results, with second quarter 2026 income of $14.1 million or $0.26 per share and income of $14.6 million or $0.29 per share for the first six months of 2026.

GAAP Results

(in millions, except per share amounts)

Q2 FY 2026

Q1 FY 2026

Q2 FY 2025

6 Months 2026

6 Months 2025

Net sales

$

149.0

$

125.1

$

107.7

$

274.1

$

204.5

Net loss

$

(0.2

)

$

(12.1

)

$

(16.9

)

$

(12.2

)

$

(47.7

)

Net loss per share

$

(0.00

)

$

(0.26

)

$

(0.36

)

$

(0.26

)

$

(1.02

)

Non-GAAP Results

(in millions, except per share amounts)

Q2 FY 2026

Q1 FY 2026

Q2 FY 2025

6 Months 2026

6 Months 2025

Net income (loss)

$

14.1

$

0.6

$

0.7

$

14.6

$

(0.1

)

Net income (loss) per share

$

0.26

$

0.01

$

0.02

$

0.29

$

(0.00

)

Total cash and investments at the end of second quarter 2026 were $498.2 million. Cohu did not repurchase any shares of its common stock during second quarter 2026.

“Second quarter results reflected broad-based improvement across our end markets, with revenue increasing 38% year-over-year and estimated test cell utilization improving to approximately 80% at the end of June,” said Cohu President and CEO Luis Müller. “Customer momentum in AI compute is accelerating, driven by the adoption of our Eclipse test handler with T-Core active thermal control for high-power processors used in data centers. Increased confidence in this market is leading us to raise our FY26 high-performance computing revenue estimate to $100 million to $110 million, further reinforcing Cohu’s differentiated position in test and inspection.”

Cohu expects third quarter 2026 sales to be in a range of $170 million +/- $7 million.

Conference Call Information:

The Company will host a live conference call and webcast with slides to discuss second quarter 2026 results at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time on July 30, 2026. Interested parties may listen live via webcast on Cohu’s investor relations website at https://edge.media-server.com/mmc/p/rpe9b6q7.

To participate via telephone and join the call live, please register in advance at https://register-conf.media-server.com/register/BIdbf80ce0cc674b15b9c10aa7e230c332 to receive the dial-in number along with a unique PIN number that can be used to access the call.

About Cohu:

Cohu (NASDAQ: COHU) was founded in 1947 and is a global technology leader supplying test, automation, inspection & metrology products, software analytics solutions and services to the semiconductor industry. Additional information can be found at www.cohu.com.

Use of Non-GAAP Financial Information:

Included within this press release and accompanying materials are non-GAAP financial measures, including non-GAAP gross margin/profit, net income (loss) and net income (loss) adjusted earnings per share, operating income (loss), operating expense, effective tax rate, net cash per share and Adjusted EBITDA that supplement the Company’s Condensed Consolidated Statements of Operations prepared under generally accepted accounting principles (GAAP). These non-GAAP financial measures adjust the Company’s actual results prepared under GAAP to exclude charges and the related income tax effect for: share-based compensation, the amortization of purchased intangible assets, restructuring costs, manufacturing transition and severance costs, change in indemnification receivable, duplicate facility costs, acquisition and financing costs and associated professional fees, fair value adjustment to contingent consideration, pension curtailment adjustments and amortization of cloud-based software implementation costs (Adjusted EBITDA only). Reconciliations of GAAP to non-GAAP amounts for the periods presented herein are provided in schedules accompanying this release and should be considered together with the Condensed Consolidated Statements of Operations. With respect to any forward-looking non-GAAP figures, we are unable to provide without unreasonable efforts, at this time, a GAAP to non-GAAP reconciliation of any forward-looking figures due to their inherent uncertainty.

These non-GAAP measures are not meant as a substitute for GAAP, but are included solely for informational and comparative purposes. The Company’s management believes that this information can assist investors in evaluating the Company’s operational trends, financial performance, and cash generating capacity. Management uses non-GAAP measures for a variety of reasons, including to make operational decisions, to determine executive compensation in part, to forecast future operational results, and for comparison to our annual operating plan. However, the non-GAAP financial measures should not be regarded as a replacement for (or superior to) corresponding, similarly captioned, GAAP measures.

Forward Looking Statements:

Certain statements contained in this release and accompanying materials may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding effects of growth in revenue in certain vertical markets; new market entries, product introductions or customer adoptions and corresponding performance metrics or financial impacts; product market projected growth and market sizes and related revenue opportunities; expectations related to our FY2026 outlook, including annual and/or quarterly projections; estimates regarding capital expenditures and other costs related to the ramp in the business; estimates related to tax expenses; and any other statements that are predictive in nature and depend upon or refer to future events or conditions; and/or include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend;” and/or other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Any third-party industry analyst forecasts quoted are for reference only and Cohu does not adopt or affirm any such forecasts.

Actual results and future business conditions could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: rapid technology changes and product transition and investment risks; industry cyclicality, seasonality and volatility; outsourced manufacturing and supply chain disruptions or dependencies; product defects and quality issues; supplier concentration and part shortages; inflation and interest rate exposure; high customer concentration and rapid innovation cycles; semiconductor industry consolidation; operational strain from rapid shifts in demands; failure to meet innovation demands of customers and industries; talent attraction and retention challenges; AI related risks; international operations complexity; trade barriers and tariffs; geopolitical instability; natural disasters and health events; climate transition and physical risks; stakeholder ESG expectations; M&A and strategic transaction risks; acquisition integration risks; risks related to gaining access to capital; foreign currency exposure; restructuring and impairment charges; financial institution instability; goodwill and intangible asset impairment charges; stock price volatility; underperformance against stock price or financial metric targets; indebtedness and covenant limits; dilution from equity issuances or note conversions; share repurchase uncertainties; anti takeover provisions; export controls and trade regulation; tax law changes and audits; environmental regulatory compliance; changing U.S. and foreign policy landscape; cybersecurity breaches or threats; IP protection challenges; IP infringement claims; data privacy obligations; or litigation risk.

These and other risks and uncertainties are discussed more fully in Cohu’s filings with the SEC, including our most recent Form 10-K and Form 10-Q, and the other filings made by Cohu with the SEC from time to time, which are available via the SEC’s website at www.sec.gov. Except as required by applicable law, Cohu does not undertake any obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

For press releases and other information of interest to investors, please visit Cohu’s website at www.cohu.com.

COHU, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per share amounts)

Three Months Ended (1)

Six Months Ended (1)

June 27,

June 28,

June 27,

June 28,

2026

2025

2026 (2)

2025

Net sales

$

149,002

$

107,680

$

274,121

$

204,477

Cost and expenses:

Cost of sales (excluding amortization)

81,412

60,571

148,626

115,051

Research and development

24,943

23,188

51,330

46,340

Selling, general and administrative

34,445

29,866

69,046

59,877

Amortization of purchased intangible assets

7,277

10,081

14,577

19,933

Restructuring charges

633

1,210

1,404

7,838

148,710

124,916

284,983

249,039

Income (loss) from operations

292

(17,236

)

(10,862

)

(44,562

)

Other (expense) income:

Interest expense

(1,620

)

(126

)

(3,241

)

(324

)

Interest income

3,868

1,386

7,710

2,999

Foreign transaction loss

(551

)

(385

)

(631

)

(440

)

Pension curtailment gain

-

1,530

-

1,530

Income (loss) from operations before taxes

1,989

(14,831

)

(7,024

)

(40,797

)

Income tax provision

2,148

2,049

5,203

6,887

Net loss

$

(159

)

$

(16,880

)

$

(12,227

)

$

(47,684

)

Loss per share:

Basic:

$

(0.00

)

$

(0.36

)

$

(0.26

)

$

(1.02

)

Diluted:

$

(0.00

)

$

(0.36

)

$

(0.26

)

$

(1.02

)

Weighted average shares used in computing loss per share: (2)

Basic

47,328

46,662

47,162

46,653

Diluted

47,328

46,662

47,162

46,653

  COHU, INC. CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)

June 27,

December 27,

2026

2025

Assets:

Current assets:

Cash and investments

$

498,167

$

483,981

Accounts receivable

122,743

108,754

Inventories

140,334

129,006

Other current assets

27,398

28,249

Total current assets

788,642

749,990

Property, plant & equipment, net

75,470

76,987

Goodwill

278,891

283,027

Intangible assets, net

64,194

79,272

Operating lease right of use assets

27,715

29,271

Other assets

23,486

24,435

Total assets

$

1,258,398

$

1,242,982

Liabilities & Stockholders’ Equity:

Current liabilities:

Short-term borrowings

$

9,976

$

9,807

Current installments of long-term debt

1,206

1,244

Deferred profit

8,258

8,626

Other current liabilities

117,913

89,401

Total current liabilities

137,353

109,078

Long-term debt

285,049

285,026

Non-current operating lease liabilities

30,713

31,693

Other noncurrent liabilities

30,695

31,646

Cohu stockholders’ equity

774,588

785,539

Total liabilities & stockholders’ equity

$

1,258,398

$

1,242,982

COHU, INC.

Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited)

(in thousands, except per share amounts)

Three Months Ended

June 27,

March 28,

June 28,

2026

2026

2025

Income (loss) from operations - GAAP basis (a)

$

292

$

(11,154

)

$

(17,236

)

Non-GAAP adjustments:

Share-based compensation included in (b):

Cost of sales (COS)

219

274

398

Research and development (R&D)

1,073

968

1,514

Selling, general and administrative (SG&A)

5,301

5,034

3,763

6,593

6,276

5,675

Amortization of purchased intangible assets (c)

7,277

7,300

10,081

Restructuring charges related to inventory adjustments in COS (d)

(1

)

(4

)

136

Restructuring charges (d)

633

771

1,210

Manufacturing transition and severance costs included in (e):

COS

-

-

162

SG&A

201

(28

)

96

201

(28

)

258

Adjustments to indemnification receivable included in SG&A (f)

6

-

-

Duplicate facility costs included in SG&A (g)

50

36

-

Acquisition and financing costs included in SG&A (h)

23

12

23

Income from operations - non-GAAP basis (i)

$

15,074

$

3,209

$

147

Net loss - GAAP basis

$

(159

)

$

(12,068

)

$

(16,880

)

Non-GAAP adjustments (as scheduled above)

14,782

14,363

17,383

Tax effect of non-GAAP adjustments (j)

(572

)

(1,699

)

1,757

Pension curtailment gain (k)

-

-

(1,530

)

Net income - non-GAAP basis

$

14,051

$

596

$

730

GAAP net loss per share - diluted

$

(0.00

)

$

(0.26

)

$

(0.36

)

Non-GAAP net income per share - diluted (l)

$

0.26

$

0.01

$

0.02

Management believes the presentation of these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company’s operating performance. Our management uses these non-GAAP financial measures in assessing the Company's operating results, as well as when planning, forecasting and analyzing future periods and these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. Management views share-based compensation as an expense that is unrelated to the Company’s operational performance as it does not require cash payments and can vary in amount from period to period and the elimination of amortization charges provides better comparability of pre- and post-acquisition operating results and to results of businesses utilizing internally developed intangible assets. Management initiated certain restructuring and manufacturing transition activities including employee headcount reductions and other organizational changes to align our business strategies and improve our cost structure. Restructuring, manufacturing transition and severance costs have been excluded because such expense is not used by management to assess the core profitability of the Company’s business operations. Management believes the change in an uncertain tax position liability and related indemnification receivable is better reflected within income tax expense rather than SG&A. Duplicate facility costs have been excluded to provide investors a clearer view of ongoing operational performance by removing temporary expenses that do not reflect the Company’s ongoing operations. Acquisition costs and certain professional service costs related to the issuance of convertible notes have been excluded by management, as they are not related to the core operating activities of the Company and can vary significantly from period to period. Excluding this data provides investors with a basis to compare the Company’s performance against the performance of other companies without this variability. However, the non-GAAP financial measures should not be regarded as a replacement for (or superior to) corresponding, similarly captioned, GAAP measures. The presentation of non-GAAP financial measures above may not be comparable to similarly titled measures reported by other companies and investors should be careful when comparing our non-GAAP financial measures to those of other companies.

  (a)

0.2%, (8.9)% and (16.0)% of net sales, respectively.

(b)

To eliminate compensation expense for employee stock options, stock units and our employee stock purchase plan.

(c)

To eliminate the amortization of acquired intangible assets.

(d)

To eliminate restructuring costs incurred.

(e)

To eliminate the manufacturing transition and severance costs.

(f)

To eliminate the impact of the change in an uncertain tax position liability and related indemnification receivable.

(g)

To eliminate duplicative facility-related expenses incurred in connection with the build-out of new locations and other restructuring activities.

(h)

To eliminate certain professional service fees and other direct incremental expenses incurred in connection with acquisitions and the issuance of convertible notes.

(i)

10.1%, 2.6% and 0.1% of net sales, respectively.

(j)

To adjust the provision for income taxes related to the adjustments described above based on applicable tax rates.

(k)

To eliminate the pension curtailment adjustment recognized associated with headcount reductions made as part of the 2025 Strategic Restructuring plan.

(l)

The three months ended June 27, 2026, March 28, 2026, and June 28, 2025, were calculated using 53,435, 48,631 and 46,838 diluted shares, respectively, as the effect of dilutive securities was excluded from GAAP diluted shares outstanding due to the GAAP net loss reported for those periods, but was included in the calculation of non-GAAP diluted earnings per share because the Company reported non-GAAP net income.

COHU, INC. Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited)

(in thousands, except per share amounts)

Six Months Ended

June 27,

June 28,

2026

2025

Loss from operations - GAAP basis (a)

$

(10,862

)

$

(44,562

)

Non-GAAP adjustments:

Share-based compensation included in (b):

Cost of sales (COS)

493

723

Research and development (R&D)

2,041

2,733

Selling, general and administrative (SG&A)

10,335

8,449

12,869

11,905

Amortization of purchased intangible assets (c)

14,577

19,933

Restructuring charges related to inventory adjustments in COS (d)

(5

)

293

Restructuring charges (d)

1,404

7,838

Manufacturing transition and severance costs included in (e):

COS

-

162

SG&A

173

143

173

305

Adjustments to indemnification receivable included in SG&A (f)

6

-

Duplicate facility costs included in SG&A (g)

86

-

Acquisition and financing costs included in SG&A (h)

35

351

Adjustment to contingent consideration included in SG&A (i)

-

(1,700

)

Income (loss) from operations - non-GAAP basis (j)

$

18,283

$

(5,637

)

Net loss - GAAP basis

$

(12,227

)

$

(47,684

)

Non-GAAP adjustments (as scheduled above)

29,145

38,925

Tax effect of non-GAAP adjustments (k)

(2,271

)

10,233

Pension curtailment gain (l)

-

(1,530

)

Net income (loss) - non-GAAP basis

$

14,647

$

(56

)

GAAP net loss per share - diluted

$

(0.26

)

$

(1.02

)

Non-GAAP income (loss) per share - diluted (m)

$

0.29

$

(0.00

)

Management believes the presentation of these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provides meaningful supplemental information regarding the Company’s operating performance. Our management uses these non-GAAP financial measures in assessing the Company's operating results, as well as when planning, forecasting and analyzing future periods and these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. Management views share-based compensation as an expense that is unrelated to the Company’s operational performance as it does not require cash payments and can vary in amount from period to period and the elimination of amortization charges provides better comparability of pre- and post-acquisition operating results and to results of businesses utilizing internally developed intangible assets. Management initiated certain restructuring and manufacturing transition activities including employee headcount reductions and other organizational changes to align our business strategies and improve our cost structure. Restructuring, manufacturing transition and severance costs have been excluded because such expense is not used by Management to assess the core profitability of the Company’s business operations. Management believes the change in an uncertain tax position liability and related indemnification receivable is better reflected within income tax expense rather than SG&A. Duplicate facility costs have been excluded to provide investors a clearer view of ongoing operational performance by removing temporary expenses that do not reflect the Company’s ongoing operations. Acquisition costs, certain professional service costs related to convertible notes, and fair value adjustments to contingent consideration have been excluded by management as they are not indicative of core operating performance. Excluding this data provides investors with a basis to compare the Company’s performance against the performance of other companies without this variability. However, the non-GAAP financial measures should not be regarded as a replacement for (or superior to) corresponding, similarly captioned, GAAP measures. The presentation of non-GAAP financial measures above may not be comparable to similarly titled measures reported by other companies and investors should be careful when comparing our non-GAAP financial measures to those of other companies.

  (a)

(4.0)% and (21.8)% of net sales, respectively.

(b)

To eliminate compensation expense for employee stock options, stock units and our employee stock purchase plan.

(c)

To eliminate the amortization of acquired intangible assets.

(d)

To eliminate restructuring costs incurred.

(e)

To eliminate the manufacturing transition and severance costs.

(f)

To eliminate the impact of the change in an uncertain tax position liability and related indemnification receivable.

(g)

To eliminate duplicative facility-related expenses incurred in connection with the build-out of new locations and other restructuring activities.

(h)

To eliminate certain professional service fees and other direct incremental expenses incurred in connection with acquisitions and the issuance of convertible notes.

(i)

To eliminate fair value adjustment to contingent consideration related to the acquisition of Tignis.

(j)

6.7% and (2.8)% of net sales, respectively.

(k)

To adjust the provision for income taxes related to the adjustments described above based on applicable tax rates.

(l)

To eliminate the pension curtailment adjustments recognized associated with headcount reductions made as part of the 2025 Strategic Restructuring plan.

(m)

As the Company reported non-GAAP net income for the six months ended June 27, 2026, non-GAAP diluted earnings per share were calculated using 51,033 diluted shares. All other periods were calculated using GAAP diluted shares outstanding.

COHU, INC. Supplemental Reconciliation of GAAP Results to Non-GAAP Financial Measures (Unaudited)

(in thousands)

Three Months Ended

June 27,

March 28,

June 28,

2026

2026

2025

Gross Profit Reconciliation

Gross profit - GAAP basis (excluding amortization) (1)

$

67,590

$

57,905

$

47,109

Non-GAAP adjustments to cost of sales (as scheduled above)

218

270

696

Gross profit - Non-GAAP basis

$

67,808

$

58,175

$

47,805

As a percentage of net sales:

GAAP gross profit

45.4

%

46.3

%

43.7

%

Non-GAAP gross profit

45.5

%

46.5

%

44.4

%

Adjusted EBITDA Reconciliation

Net loss - GAAP Basis

$

(159

)

$

(12,068

)

$

(16,880

)

Income tax provision

2,148

3,055

2,049

Interest expense

1,620

1,621

126

Interest income

(3,868

)

(3,842

)

(1,386

)

Amortization of purchased intangible assets

7,277

7,300

10,081

Depreciation

3,139

3,123

3,377

Amortization of cloud-based software implementation costs (2)

730

709

709

Pension curtailment gain

-

-

(1,530

)

Other non-GAAP adjustments (as scheduled above)

7,505

7,063

7,302

Adjusted EBITDA

$

18,392

$

6,961

$

3,848

As a percentage of net sales:

Net loss - GAAP Basis

(0.1

)%

(9.6

)%

(15.7

)%

Adjusted EBITDA

12.3

%

5.6

%

3.6

%

Operating Expense Reconciliation

Operating Expense - GAAP basis

$

67,298

$

69,059

$

64,345

Non-GAAP adjustments to operating expenses (as scheduled above)

(14,564

)

(14,093

)

(16,687

)

Operating Expenses - Non-GAAP basis

$

52,734

$

54,966

$

47,658

Six Months Ended

June 27,

June 28,

2026

2025

Gross Profit Reconciliation

Gross profit - GAAP basis (excluding amortization) (1)

$

125,495

$

89,426

Non-GAAP adjustments to cost of sales (as scheduled above)

488

1,178

Gross profit - Non-GAAP basis

$

125,983

$

90,604

As a percentage of net sales:

GAAP gross profit

45.8

%

43.7

%

Non-GAAP gross profit

46.0

%

44.3

%

Adjusted EBITDA Reconciliation

Net loss - GAAP Basis

$

(12,227

)

$

(47,684

)

Income tax provision

5,203

6,887

Interest expense

3,241

324

Interest income

(7,710

)

(2,999

)

Amortization of purchased intangible assets

14,577

19,933

Depreciation

6,262

6,609

Amortization of cloud-based software implementation costs (2)

1,439

1,418

Pension curtailment gain

-

(1,530

)

Other non-GAAP adjustments (as scheduled above)

14,568

18,992

Adjusted EBITDA

$

25,353

$

1,950

As a percentage of net sales:

Net loss - GAAP Basis

(4.5

)%

(23.3

)%

Adjusted EBITDA

9.2

%

1.0

%

Operating Expense Reconciliation

Operating Expense - GAAP basis

$

136,357

$

133,988

Non-GAAP adjustments to operating expenses (as scheduled above)

(28,657

)

(37,747

)

Operating Expenses - Non-GAAP basis

$

107,700

$

96,241

More News From Cohu, Inc.

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Heading into August 2026, the S&P 500 seems to be experiencing a sluggish summer, although the market remains up about 8% year to date (YTD). This is despite a protracted sell-off in the AI industry that has rattled some of the biggest gainers this year. However, there are still opportunities for momentum plays for investors willing to dig a bit deeper.

Stocks with rallies of 70% YTD or better are still available, but investors will want to know whether that momentum is likely to continue as they look ahead to the final quarter of the year.

Get ArcBest alerts:

Three stocks have delivered outsized gains in 2026, but the durability of their rallies depends on very different catalysts, fundamentals, and risk profiles: ArcBest Corp. NASDAQ: ARCB, Kulicke & Soffa Industries NASDAQ: KLIC, and Cohu Inc. NASDAQ: COHU. For investors, the key question is which companies have enough earnings momentum to support further upside—and which rallies may be running ahead of the underlying businesses.

ArcBest: Rally Hinges on a Freight Recovery and Shipment GrowthArcBest Today

$150.20 +1.33 (+0.89%)

As of 03:46 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$59.43▼

$176.69Dividend Yield0.32%

P/E Ratio62.05

Price Target$155.08

ArcBest is a freight logistics and supply chain solutions company that has thrived as optimism about the transportation industry has been slowly growing.

Trucking has been plagued by excess capacity, weak demand, inflation, tariff impacts, and more. But ArcBest has remained even while weaker competitors have pivoted away.

With investors anticipating its Q2 2026 earnings report on July 29, the market will be watching to see if ArcBest can maintain or build on its daily shipments.

Asset-based operations experienced 2% year over year (YOY) growth in the first quarter of the year, while asset-light stood out for 10% YOY growth to shipments per day.

The company is also investing in technology to improve efficiency and the customer experience. Its AI-enabled City Route Optimization program delivered $15 million in savings in 2025, while ArcBest View brings quoting, booking, shipment visibility, and reporting into one customer platform.

Management has signaled optimism for the remainder of the year, including projections for opportunistic stock buybacks, even as revenue grew by a relatively small 3% YOY for the first quarter. Accelerating top-line growth will be key for ArcBest if it is to maintain its share price momentum.

Shares of ARCB are up a massive 100% YTD, but analysts think there is still some room for modest growth to come. The company has a Moderate Buy rating overall based on nine Buys and six Holds.

ArcBest Corporation (ARCB) Price Chart for Tuesday, July, 28, 2026

Kulicke & Soffa: AI Packaging Growth Faces a Cyclical TestKulicke and Soffa Industries Today

KLIC

Kulicke and Soffa Industries

$91.13 -7.09 (-7.22%)

As of 03:46 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$31.32▼

$135.80Dividend Yield0.90%

P/E Ratio87.79

Price Target$59.25

With a market capitalization under $5 billion, Kulicke & Soffa tends to go overlooked by investors compared to its larger rivals in the semiconductor and LED assembly space.

Still, the company has thrived this year, with shares rising by around 98% YTD despite the AI industry decline that has impacted many semiconductor makers.

This firm stands out for its niche thermo-compression bonding business, which provides advanced packaging technologies that are critical for certain AI systems, high-performance computing, and memory products.

Kulicke & Soffa has seen material improvement in demand and sales thanks to this part of its business, as well as its fluxless thermal compression area.

Management expects fiscal 2026 thermo-compression bonding revenue to exceed $100 million and is expanding Advanced Solutions production capacity to support roughly $400 million in annual revenue.

Overall, revenue is growing rapidly for Kulicke & Soffa, having climbed by nearly 50% YOY in the latest quarter. Management expects solid improvement to continue, though investors should, of course, be cautious given the cyclical nature of semiconductor equipment and, in particular, the recent volatility in the space. This may be why some analysts are cautious, giving KLIC shares a consensus Hold rating.

Kulicke and Soffa Industries, Inc. (KLIC) Price Chart for Tuesday, July, 28, 2026

Cohu: AI Testing Expansion Could Offset Near-Term Margin PressureCohu Today

$42.35 -5.46 (-11.42%)

As of 03:46 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$17.80▼

$74.60Price Target$63.86

Cohu is another semiconductor play, though with a very different focus: it provides test and inspection solutions, potentially insulating it from some of the AI industry's shocks this year.

This may be one reason why COHU shares have done well, rising by about 82% YTD. This could expand as the company broadens its reach into AI processor testing, new types of memory inspection, and more.

Orders have grown substantially in the first part of the year, rising 57% YOY in Q1 2026 and helping to boost revenue by 29% over the same period.

Management expects revenue growth for the full year to be in the range of 20% to 25%, signaling strong improvements to recurring, high-margin sales like software subscriptions.

At the same time, rising operating expenses as Cohu scales and increased supply chain costs will likely continue to put some pressure on the company's gross margins in the near term.

Regardless, Wall Street sees the company continuing to thrive: analysts expect nearly 50% in upside potential and favor the stock with seven Buy ratings compared to just one Hold and one Sell.

Cohu, Inc. (COHU) Price Chart for Tuesday, July, 28, 2026

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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 on Cohu’s investor relations website at https://edge.media-server.com/mmc/p/rpe9b6q7

To participate via telephone and join the call live, please register in advance at https://register-conf.media-server.com/register/BIdbf80ce0cc674b15b9c10aa7e230c332 to receive the dial-in number along with a unique PIN number that can be used to access the call.

The webcast replay will be available on the Company’s website through July 30, 2027, at www.cohu.com.

About Cohu:

Cohu (NASDAQ: COHU) was founded in 1947 and is a global technology leader supplying test, automation, inspection & metrology products, software analytics solutions and services to the semiconductor industry. Additional information can be found at www.cohu.com.

For press releases and other information of interest to investors, please visit Cohu’s website at www.cohu.com.

More News From Cohu, Inc.

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Pre-Market Stock Futures: 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%. The S&P 500 also rallied in the afternoon, erasing a big deficit, to finish the session down just 0.28% at 7,482. The small-cap Russell 2000, which is still the leading index in 2026, closed at 2,958, down 0.82%, while the Dow Jones Industrial Average took the biggest hit on Wednesday, closing at 52,348, down 1.09%. Needless to say, the re-escalation of the war with Iran once again provides ammunition for more volatility and the potential for another major move lower. Just as oil prices had almost returned to pre-war levels, the fighting resumed, as did the movement higher in the two major benchmarks. The President, like so many before him and around him, is well aware of the stalling tactics of Iran, but this time, the clock may have run out.

Treasury Bonds: Once again, yields were higher across the entire Treasury curve except for the shortest T-bill maturities. The resumption of fighting and rising oil prices bring the rate increase narrative back into the room, especially after the June meeting notes showing that the Fed Governors are very divided on the path forward, and any increases in the inflation readings will likely keep that division in place. Plus, as history shows, if there is a rate increase, it likely won’t be just one, as that has never happened. The 30-year long bond finished the day at 5.07%, while the benchmark 10-year note closed at 4.58%. 

Oil and Gas: The minute the war with Iran was back on, so were the prices in the energy complex, as both of the major benchmarks closed the session higher. President Trump has halted any oil sales coming from Iran, while effectively closing the Strait of Hormuz once again. When the final bell rang, Brent Crude closed at $79.12, up a stunning 6.69%, while West Texas Intermediate was last seen at $74.61, up 5.92%. Natural gas closed down 1.26% to $ 3.22. One thing is for sure: Middle East oil producers are expanding pipelines and seeking alternative routes to move their production beyond the Straits. 

Gold: For the second day running, Gold traded lower on Wednesday, and the same reasons that drove price lower on Tuesday carried forward, as a stronger dollar and rising interest rates made the non-yielding Gold complex less desirable. Add in the inflation worries associated with higher energy prices, and precious metals end up on the losing side, at least for now. When the final bell rang on Wednesday, Gold closed at $4,074, down 0.73%, while Silver closed at $58.13, down 2.85%. 

Crypto: Crypto markets sold off on Wednesday amid heightened U.S.-Iran tensions and the collapse of the ceasefire, sparking a risk-off move. Bitcoin dropped to around $61,800, briefly breaking below the $62,000 level amid broader market weakness and rising oil prices. The decline triggered liquidations and weighed on major altcoins, with sentiment remaining cautious amid ongoing geopolitical uncertainty. At 8 AM EDT, Bitcoin traded at $62,610, while Ethereum traded at $1,741.

24/7 Wall St. reviews dozens of analyst research reports every day to identify fresh investment ideas for investors and traders alike. These daily analyst notes include recommendations on stocks to buy, sell, or avoid, as well as new coverage initiations. Important reminder: No single analyst report should ever be the sole basis for buying or selling a stock.

Here are some of the best Wall Street analyst upgrades, downgrades, and initiations seen on Thursday, July 9, 2026.  

Upgrades: American International Group (NYSE: AIG | AIG Price Prediction) was upgraded to Overweight from Neutral at Cantor Fitzgerald, which bumped the target price for the insurance giant to $92 from $85. American Tower (NYSE: AMT) was upgraded to Outperform from Peer Perform at Wolfe Research, which has a $188 target price. Cinemark Holdings (NYSE: CNK) was raised to Neutral from Sell at Goldman Sachs, which bumped the target price for the stock to $30 from $23. Five Below (NASDAQ: FIVE) was upgraded to Outperform from Neutral at Mizuho, which trimmed the price target for the popular retailer to $220 from $225. Toast (NYSE: TOST) was raised to Buy from Neutral at Goldman Sachs, which has set a $36 target price for the shares. Downgrades: Caesars Entertainment (NYSE: CZR) was cut to Equal Weight from Overweight at Barclays, which trimmed the target price for the gaming giant to $31 from $35. Kaiser Aluminum (NASDAQ: KALU) was cut to Underweight from Equal Weight at Wells Fargo, which bumped the target price down to $158 from $160. Salesforce (NYSE: CRM) was downgraded to Sector Weight from Overweight at KeyBanc, without a price target. Mattel (NYSE: MAT) Goldman Sachs downgraded the popular toy and game giant to Sell from Neutral, and dropped the price target to $12 from $15. Tractor Supply (NASDAQ: TSCO) was downgraded to Neutral from Outperform at Mizuho, which cut the target price for the stock to $32 from $50. Initiations: Align Technology (NASDAQ: ALGN) was initiated with an Outperform rating at BMO Capital, with a $209 target price objective. Cohu (NASDAQ: COHU) was started with an Outperform rating at Baird, with a $65 target price. GE Healthcare Technologies (NASDAQ: GEHC) was initiated with a Market Perform rating at BMO Capital with a $70 target price. Intuitive Surgical (NASDAQ: ISRG) was initiated with an Outperform rating at BMO Capital, with a $518 target price. Tesla (NASDAQ: TSLA) was started with a Market Perform rating at Citizens, without a price target. Want Up To $1,000? SoFi Is Giving New Active Invest Users Free StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.

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Contact [email protected] for any questions or corrections.

Jeffrey D. Jones, Senior Vice President of Finance and Chief Financial Officer of Cohu (COHU 14.24%), reported the sale of 13,000 shares of Common Stock in an open-market transaction on May 22, 2026, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares traded (direct)13,000Transaction value~$609,000Post-transaction shares (direct)343,792Post-transaction value (direct ownership)~$16.0 millionTransaction value based on SEC Form 4 weighted average reported price ($46.84); post-transaction value based on position holdings and the reported transaction date price.

Key questionsHow does the transaction compare to Jones' prior open-market sales?
This 13,000-share sale is the largest of Jones' two open-market dispositions over the past three years, with the previous transaction involving 10,000 shares, reflecting a consistent pattern of periodic sales as direct holdings allow.What is the impact on Jones' ownership and remaining capacity?
The sale reduced Jones' direct stake by 3.64%, leaving a substantial direct holding of 343,792 shares; as of May 22, 2026, this represents approximately $16.0 million in market value, maintaining meaningful exposure to Cohu equity.Was there any indirect or derivative participation in this transaction?
No; the filing shows exclusively direct shares sold, with no activity reported through indirect entities, trusts, or derivative securities.How does this transaction align with Cohu's current market context?
The disposition occurred after a 169.3% one-year total return in Cohu shares (as of May 22, 2026), allowing Jones to realize liquidity from a portion of his direct equity position while retaining the majority of his holdings for continued alignment with shareholders.Company overviewMetricValuePrice (as of market close May 22, 2026)$46.53Market capitalization$2.49 billionRevenue (TTM)$481.28 million1-year price change169.3%* 1-year performance calculated using May 22, 2026 as the reference date.

Company snapshotCohu offers semiconductor test equipment, inspection handlers, MEMS test modules, test contactors, thermal subsystems, and data analytics software for global semiconductor and electronics manufacturers.It generates revenue primarily through the sale of automated test equipment, interface products, spares, kits, and post-sale services including warranties, training, and consulting.The company serves semiconductor and electronics manufacturers, as well as test subcontractors, with a global footprint across the U.S., China, Taiwan, Malaysia, and the Philippines.Cohu is a leading provider of semiconductor test and inspection equipment, supporting manufacturers and test subcontractors worldwide. The company leverages a diversified product portfolio and specialized software solutions to address complex testing requirements across the semiconductor value chain.

With a global customer base and nearly 3,000 employees, Cohu combines scale and technical expertise to maintain a competitive position in the semiconductor equipment industry.

What this transaction means for investorsThe May 22 sale of Cohu stock by the company’s CFO Jeffrey Jones came at a time when shares were rising. The stock would eventually reach a multi-year high of $74.60 on June 30, but Jones has not sold additional shares as of July 1.

His disposition makes sense given Cohu’s impressive share price increase. The sale accounted for less than 4% of his total direct holdings, which indicates he wasn’t rushing to dump his stake.

Jones retained over 340,000 shares after the transaction. This suggests he has confidence that the stock will continue to deliver future returns. Given these factors, Jones’ sale does not appear to be a cause for investor concern.

Cohu stock has been on an incredible run thanks to increased customer demand as a result of the artificial intelligence sector. The company announced it had received multiple orders totaling $5 million on May 12. Cohu produced revenue of $125.1 million in its fiscal first quarter ended March 28, which was a strong increase from the prior year’s $96.8 million.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Takeaways COHU has surged in 2026 as orders, chip-test utilization and AI demand confidence improve.First-quarter revenues rose 29.3% to $125.1M, but earnings missed as expenses stayed elevated.COHU's valuation is above industry and its five-year median, leaving less room for missteps. Cohu, Inc. (COHU - Free Report) has moved from a recovery candidate to a high-expectation semiconductor equipment stock. After a sharp 2026 rally, the debate is less about whether demand is improving and more about how much of that improvement is already reflected in the share price.

The stock still has support from AI, high-performance computing and improving order trends. Yet profitability remains early in its recovery, and valuation now leaves less room for execution errors.

COHU Has Momentum but Not a Clean StoryCOHU shares have surged 195.5% year to date and 236.2% over the past 12 months. That move reflects a better order backdrop, higher semiconductor test utilization and stronger confidence in AI-related demand.

COHU One-Year Price Return Performance
Image Source: Zacks Investment Research

The operating story, however, is still rebuilding. Cohu is benefiting from higher customer engagement in AI compute, HBM inspection and power-management test, but the company is recovering from a weak 2025 earnings base rather than compounding from already-strong profitability.

Teradyne, Inc. (TER - Free Report) is a useful comparison because it also serves semiconductor and electronics testing markets. Teradyne designs and manufactures automated test equipment, making it relevant for investors evaluating the broader chip-test cycle.

Advantest Corporation (ATEYY - Free Report) is another relevant benchmark in semiconductor test equipment. Its products include SoC, power-device and memory test systems, which overlap with several demand areas influencing Cohu’s opportunity set.

Cohu Revenue Growth Looks Better Than EarningsFirst-quarter 2026 revenues increased 29.3% year over year to $125.1 million, while non-GAAP gross margin improved to 46.5%. The quarter also benefited from stronger orders and estimated test-cell utilization of 78%.

Earnings were less convincing. Cohu reported non-GAAP earnings per share of a penny, missing expectations, while operating expenses remained elevated as the company increased investments to support high-performance computing opportunities.

The annual earnings picture also argues for patience. EPS was negative in 2025 at 22 cents per share, and the 2026 estimate calls for a recovery to 60 cents. That is progress, but not enough to make the earnings case look fully de-risked.

COHU Valuation Leaves Less Room for ErrorValuation is the main reason to be more measured after the rally. COHU trades at 5.29X forward 12-month sales, above the Zacks Electronics - Manufacturing Machinery industry’s 4.42X and well above its own five-year median of 2.20X.

COHU Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

That premium may be justified if AI and HPC demand converts into sustained revenue growth. Still, a richer sales multiple increases the penalty if customer qualifications, order timing or margin recovery disappoint.

The valuation signal is also visible in the price target. The $78 target sits only modestly above the $69.11 stock price as of July 1, 2026, suggesting upside exists but is no longer wide after the rally.

Cohu Balance Sheet Supports the Bull CaseCohu’s balance sheet remains a clear support for the bullish argument. The company ended the first quarter of 2026 with $488.7 million in cash and investments.

That financial flexibility matters because the recovery depends on sustained product development and customer qualifications. With roughly $305 million of total debt, Cohu has room to fund R&D, production capacity and software development while waiting for broader semiconductor demand to scale.

How COHU Screens for Investors NowThe bottom line is that COHU still offers upside tied to AI compute, HBM inspection and a cyclical recovery, but the stock no longer looks inexpensive. The rally has made execution and valuation discipline more important.

COHU currently carries a Zacks Rank #2 (Buy), indicating supportive near-term earnings estimate trends. That helps keep the stock on investors’ watchlists, especially while orders and revenue are improving. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Style Scores are more mixed. COHU has a Growth Score of B, but its Value Score of F, Momentum Score of F and VGM Score of F point to an uneven overall setup. For investors, that combination supports a selective stance: the recovery story is real, but valuation and execution risks argue against chasing the stock without caution.

Steven J. Bilodeau, a member of the Board of Directors of Cohu (COHU 1.48%), reported the sale of 10,257 shares in an open-market transaction on May 20, 2026, according to an SEC Form 4 filing.

Transaction summaryMetricValueShares sold (direct)10,257Transaction value$460,000Post-transaction shares (direct)52,272Post-transaction value (direct ownership)$2.35 millionTransaction value based on SEC Form 4 reported price ($44.85); post-transaction value based on May 20, 2026 market close ($44.98).

Key questionsHow does this transaction compare to Bilodeau's historical selling pattern?
Over the past four open-market sales, the average trade size was ~7,900 shares; this transaction at 10,257 shares is above that mean but reflects a higher percentage of remaining holdings, consistent with a shrinking base of available shares.What is the impact on Bilodeau’s total direct ownership and capacity for further sales?
Bilodeau’s direct stake decreased by 16.40% following the transaction, leaving him with 52,272 shares, or approximately $2.35 million in market value as of May 20, 2026, and no indirect or derivative holdings reported.Did the sale coincide with material changes in Cohu’s stock price or market environment?
The sale was executed at $44.85 per share, with Cohu closing at $44.98 that day and up 153.3% year-over-year as of the transaction date, indicating strong price performance but no sharp intra-day movement linked to this trade.Company overviewMetricValuePrice (as of market close 2026-05-20)$44.98Market capitalization$2.20 billionRevenue (TTM)$481.28 million1-year price change153.3%* 1-year price change calculated using May 20th, 2026 as the reference date.

Company snapshotCohu offers semiconductor test and inspection handlers, MEMS test modules, thermal sub-systems, interface products, and data analytics software for semiconductor and electronics manufacturers.It generates revenue primarily through the sale of automated test equipment, interface products, spares, and related services, including software and consulting.The company serves integrated device manufacturers, outsourced semiconductor assembly and test companies, and electronics manufacturers globally, with a significant presence in Asia and North America.Cohu is a leading provider of semiconductor test equipment and related services, operating at scale with nearly 3,000 employees and a global customer base.

The company leverages a diversified product portfolio to address the evolving needs of semiconductor and electronics manufacturers, focusing on automation, test efficiency, and data-driven performance optimization.

What this transaction means for investorsThe May 20 sale of Cohu stock by Director Steven Bilodeau came at a time when shares were rising after a solid first-quarter earnings report. The stock would eventually climb to a multi-year high of $70.92 on June 22.

Bilodeau was likely capitalizing on the share price growth to capture some gains. He retained over 50,000 shares after this disposition, maintaining a sizable equity stake in the company. Some of those shares were not vested at the time of his transaction, meaning he could not sell them immediately.

Cohu stock is up thanks to its position as a provider of test and inspection solutions for the semiconductor industry. With the advent of artificial intelligence, the company’s offerings are in high demand.

This is illustrated in Cohu’s revenue of $125.1 million in its fiscal first quarter ended March 28, up from the prior year’s $96.8 million. The company expects sales to accelerate in its fiscal second quarter to around $144 million.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Tom Yeung here with your Sunday Digest. 

Last week, I wrote about two “future-proof” stocks to help shield your portfolio against the threats of AI. Artificial intelligence was causing mayhem in the software industry, and former SaaS superstars like Salesforce Inc. (CRM) and SAP SE (SAP) were suddenly looking less shiny. Shares of these firms have fallen 40% or more from their peaks. 

I offered fertilizer company The Mosaic Co. (MOS) and Australian whiskey maker Lark Distilling Co. Ltd. (LRK) as defenses from the disruption. 

But what about having a good AI offense as well? 

That’s more of a challenge. The best time to buy AI chip makers was six months ago when prices were still reasonable. 

Since then, memory-chip maker Micron Technology Inc. (MU) has risen 262%, while energy storage firm Fluence Energy Inc. (FLNC) has jumped 111%. The “obvious” plays are now trading at valuations that would make venture capitalists uneasy.  

So, it’s challenging… but not impossible. 

In a new special presentation, InvestorPlace Senior Analyst Eric Fry says there’s still time to get in on a second AI wave. These are smaller companies that are building the “Golden Rivets,” which are the essential components that power first-wave firms like Micron and Fluence. Without them, it’s like trying to run a race car without fuel. 

During the presentation, Eric reveals a whole host of AI bottlenecks – raw materials, digital memory, energy – and identifies the specific companies that are now seeing unprecedented demand thanks to being in the right place at the right time. 

You can click here now to watch his FutureProof 2026 event.

Now, to give you a sense of these “Golden Rivet” makers, I’d like to highlight two companies at the forefront of the AI bottlenecks… and that have been overlooked by Wall Street almost entirely so far. You’ll quickly see why I’m so excited for Eric’s picks. 

A Dominant Company in the Background  Few people have ever heard of copper sulfate plating – the technology that creates the ultrathin wiring in modern chip packages. 

Even fewer people have heard of JCU Corp (TYO:4975), the under-the-radar Japanese firm that dominates that industry.  

In 2019, the Tokyo-based firm estimated it had a 70% global market share in copper sulfate plating for smartphones and tablets. That figure has likely grown, as shown by JCU’s sky-high operating margins that continue to rise. It’s now on track to earn 40% operating margins this year, up from 27% in 2019. 

That level of profitability is rare in manufacturing. It’s even more remarkable given Japan’s traditionally low-margin corporate environment. To give you a sense, JCU earns higher profit margins than Apple Inc. (AAPL) does from selling premium iPhones. 

That’s because JCU’s products sit inside a crucial, failure-sensitive part of chipmaking. Here’s a simplified version of how it works… 

A chip package starts as a specialized insulating material with tiny holes drilled into it with lasers. The material is then cleaned, chemically treated, and dipped into a copper sulfate bath to deposit an ultrafine copper layer exactly where it’s needed. (This is the step JCU allows.)  

After that, the package is sent through an etching process, where excess copper is removed, and the finished piece has silicon components-attached in a die-bonding process. And if a package needs multiple layers, the process starts over again.  

This matters because packaging defects can ruin an entire chip. If copper wiring is defective, the final product could perform poorly, degrade over time, or simply not work at all. Data centers would end up with expensive paperweights. 

That’s where JCU’s technology comes in. The company offers a precise recipe and control system for copper sulfate plating used to create wiring of 0.8 micrometers and less –almost 10 times finer than what conventional methods can achieve.  

In addition, JCU’s historical dominance means that it’s baked into the process of its customers. Chipmakers know how to precisely etch the copper from JCU’s recipe for the right outcome each time. Why should they risk rolling the dice on a new copper sulfate plating system when the current system works so well?  

Two factors are now putting JCU on a high growth path. 

The first is the rise of 2.5D and 3D chips. Stacked chips require multiple rounds of copper plating. They also have connection areas called “vias” that send electrical signals between layers, which requires a specialized form of plating. JCU has launched a brand called TIPHARES to deal specifically with stacked chips and anticipates strong demand. 

The second is that AI data centers have created a shortage in virtually every computer component. GPUs, hard drives, NAND flash memory, and DRAM have seen their prices rise uncontrollably, and some makers have already sold out their entire 2026 inventory. 

That means we should expect a ramp-up of production across the entire semiconductor industry, benefiting JCU at every turn. Virtually every modern semiconductor requires packaging of some kind, which all feeds into the demand for this Japanese firm. JCU is a natural bottleneck because the company is so dominant in its niche. 

That’s why I believe estimates for JCU’s growth are far too conservative. Analysts are currently estimating just 31.5 billion yen in 2027 revenues (a 5% annual growth rate), which is roughly what JCU was guiding for in 2024… well before the semiconductor shortages began. 

To put that into perspective, revenues already rose 14% in 2025 and operating profits surged 31%. 

It’s also noteworthy that markets have not yet fully recognized JCU’s value. Shares trade at just 16X forward earnings, which is already ludicrously low for a company with 40% operating margins. Though shares may be difficult for American investors to buy, JCU’s dominance of its industry could make them worth it. 

Rolling the Dice  Those seeking a higher risk/reward “Golden Rivet” company will find one in Cohu Inc. (COHU). 

Cohu is a semiconductor test and inspection equipment maker that competes directly with industry giants Teradyne Inc. (TER) and Advantest Corp. (ATEYY). The two larger firms control over 80% of the overall chip testing equipment market and spend roughly as much on research and development (R&D) annually as Cohu generates in total sales. 

Traditionally, that’s left Cohu with scraps. The San Diego-based firm focuses on the less desirable midrange market and on test handlers – the robots that physically transport the chips being tested. Margins in both are lower and far more cyclical, because customers can delay purchases without fear of technologically falling behind.  

Since 2000, Cohu has posted 16 years of positive operating income and 10 years of negative income. Automotive, industrial, and mobile manufacturers are notoriously tough customers. 

COHU operating margin %

Source: Refinitiv

This cyclicality means Cohu’s shares now trade 40% below their 2021 peak. Revenues have shrunk 48% since 2022 on a cyclical downturn, and net income turned negative starting in 2024. In an earnings call last year, CFO Jeffrey Jones admitted that customers were delaying shipments, forcing the firm to cut 2025 forecasts.  

However, insatiable demand for AI chips is changing that picture. Last month, Cohu’s management announced that annual revenue growth had turned positive again, and that margins were on the rise. This was driven by both a cyclical uptick in mid-end customers, as well as strong demand from customers working with AI data centers, high-bandwidth memory, and physical AI applications. System orders (the higher-margin type) rose 47% quarter-on-quarter, and analysts now expect net income to flip positive again this year. Wall Street forecasts profits to double again in 2027. 

Cohu has also seen some early success with its new Eclipse platform, which is designed specifically to test AI data center chips. Two major customers have now adopted Eclipse for AI testing, and Cohu’s management recently said they now expect to achieve the “upper end” of revenue forecasts for their high-performance computing (HPC) segment this year. They foresee Eclipse shipments accelerating in the second and third quarters. 

This is all excellent news for this traditionally cyclical firm. Hyperscalers like Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN) are projected to spend trillions of dollars through at least 2030 building out AI data centers, and these big spenders have already triggered shortages in the AI chip testing market. In January, Advantest said it was speeding up its expansion plans to keep up and boosted its profit forecast by 21%. Teradyne has reported similarly bullish outlooks. 

This is particularly bullish news for Cohu, since its larger rivals are now having trouble keeping up with demand. Customers may switch to the smaller supplier simply to access the AI chip testing they need. 

That makes Cohu’s stock worth considering. The lows of cyclical companies might be very low, but that also makes their highs almost stratospheric. 

The Golden Rivets  The two companies I mentioned here both have some downsides. JCU is potentially a value trap, because it receives virtually no Wall Street coverage and is difficult for American investors to buy. Meanwhile, Cohu is a cyclical play with far higher downside risks. Only active traders should consider such investments. 

That’s why I want to make sure you tune in to Eric’s latest presentation, where he talks about 15 separate “Golden Rivet” picks before homing in on his top choices. These are companies like Nvidia Corp. (NVDA), Advanced Micro Devices Inc. (AMD) and Broadcom Inc. (AVGO) that have solved AI bottlenecks… except Eric’s new picks have yet to see the 10X gains those companies have because they’re still early in the cycle. 

But don’t wait long. We’ll only be replaying this free presentation until midnight on Wednesday, so be sure to watch his special talk before then. 

Until next week, 

Thomas Yeung, CFA 

Market Analyst, InvestorPlace 

P.S. I will be revisiting my top picks for 2026 in the coming weeks as we enter the second quarter. In the meantime, Larimar Therapeutics Inc. (LRMR) is added to that list. 

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

Cohu, Inc. (NASDAQ: COHU - Get Free Report)'s share price crossed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $25.42 and traded as high as $31.78. Cohu shares last traded at $30.23, with a volume of 556,159 shares changing hands. Analyst Ratings

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 first quarter 2026 on Thursday, April 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.

On April 28, 2026, Cohu Inc COHU shares fell 4.4% to a current price of $44.15, reflecting a volatile trading environment. The stock's performance has fluctuated significantly over the past year, with a 52-week high of $47.69 and a low of $15.34.

GF Value™ verdict: Current price is $44.15, while GF Value™ estimates fair value at $24.07, indicating the stock is 83.4% overvalued.GF Score™ of 57/100 suggests the stock is rated average based on key performance metrics.Notable signal: Insiders have sold $0.4 million in shares over the last three months, with no insider buying reported. Is COHU Overvalued or Undervalued? Cohu Inc's current share price of $44.15 is significantly higher than its GF Value™ of $24.07. This large discrepancy indicates that the stock is overvalued by approximately 83.4%. The GF Valuation label indicates that COHU is significantly overvalued, which poses a risk for potential investors seeking a margin of safety. A stock valued above its intrinsic worth may not provide adequate returns in the long term, especially if the market corrects such discrepancies.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The substantial overvaluation suggests that investors may want to exercise caution before entering a position in COHU, as the potential for a market correction could lead to a steep decline in share prices.

How Does COHU's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 83.9x 17.8x Currently, Cohu's forward P/E ratio of 83.9x is significantly above its 5-year median P/E of 17.8x. This analysis supports the GF Value™ verdict, reinforcing the conclusion that COHU is trading at an elevated valuation compared to its historical benchmarks.

What Does COHU's GF Score™ Tell Us? Metric Rating GF Score™ 57/100 Financial Strength 6/10 Profitability 4/10 Growth 1/10 Valuation 1/10 Momentum 9/10 The GF Score™ of 57/100 indicates that Cohu Inc has mixed performance across various metrics. Its strongest area lies in momentum, with a high rank of 9/10, suggesting a favorable short-term price trend. However, the company scores only 1/10 in both growth and valuation, highlighting significant weaknesses in its financial growth prospects and current valuation levels. This mixed score may indicate that while COHU has shown strong recent performance, underlying fundamentals may not support this momentum.

What Are Insiders Doing with COHU Stock? Insider activity over the past three months has shown that insiders sold $0.4 million worth of shares, with no buying activity reported. This selling may signal a lack of confidence in the company's future prospects or a strategy to realize gains after significant price appreciation. Such patterns can raise red flags for external investors, suggesting that insiders may expect potential challenges ahead.

What This Means for Investors Based on the analysis of GF Value™, Cohu Inc COHU is currently overvalued. The significant gap between its market price and intrinsic value suggests that the stock may not present a favorable investment opportunity at this time.

For the complete analysis, visit the Cohu Inc COHU stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is COHU's GF Score™?

Cohu's GF Score™ is 57/100, indicating an average rating based on key performance metrics.

Is COHU overvalued or undervalued?

COHU is overvalued, with a current price of $44.15 compared to a GF Value™ of $24.07, indicating substantial overvaluation.

What is COHU's P/E ratio?

COHU's forward P/E is 83.9x, which is significantly above its historical median of 17.8x, supporting the conclusion that the stock is overvalued.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

SAN DIEGO--(BUSINESS WIRE)--Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today reported fiscal 2026 first quarter net sales of $125.1 million and GAAP loss of $12.1 million or $0.26 per share. Cohu also reported first quarter 2026 non-GAAP income of $0.6 million or $0.01 per share.                       GAAP Results                 (in millions, except per share amounts) Q1 FY 2026   Q4 FY 2025   Q1 FY 2025.

Cohu, Inc. (COHU) Q1 2026 Earnings Call Transcript

SAN DIEGO--(BUSINESS WIRE)--Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today announced that a leading semiconductor manufacturer has placed multiple orders totaling approximately $5 million for the DiamondX platform, delivering high-current capability, ultra-low resistance measurement accuracy and scalable multi-site throughput. The systems will support development and manufacturing of next-generation gal.

Cohu, Inc. (NASDAQ: COHU), a global supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, today announced that management will participate at the following investor conferences:

TD Cowen 54th Annual Technology, Media & Telecom Conference
Location: InterContinental New York Barclay, New York, NY
May 27, 2026

23rd Annual Craig-Hallum Institutional Investor Conference
Location: Depot Renaissance Hotel Minneapolis, MN
May 28, 2026

Stifel 2026 Cross Sector Insight Conference
Location: InterContinental Boston, MA
June 2, 2026

2026 Evercore Global TMT Conference
Location: the Omni San Francisco Hotel in San Francisco, CA
June 3, 2026

Portfolio managers and analysts should contact their respective banking representative to schedule a meeting at these conferences.

Presentation materials will be made concurrently available on the Investor Relations section of the Company’s website, www.cohu.com.

About Cohu:

Cohu (NASDAQ: COHU) was founded in 1947 and is a global technology leader supplying test, automation, inspection & metrology products, software analytics solutions and services to the semiconductor industry. Additional information can be found at www.cohu.com.

For press releases and other information of interest to investors, please visit Cohu’s website at www.cohu.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260518688544/en/

The semiconductor industry is at the heart of the artificial intelligence (AI) revolution. Without advanced chips and networking components for data centers, developers wouldn't have enough computing capacity to build and deploy AI models. Nvidia, Advanced Micro Devices, and Micron Technology are just a few key suppliers of that hardware.

However, many lesser-known companies operate behind the scenes to supply machines and equipment that make the manufacturing process more efficient. Cohu (COHU +7.53%) is one of them -- its testing and handling systems play a central role in the quality control process, ensuring chips are free of defects before they ship to customers.

Cohu stock has exploded higher by 160% over the last 12 months on soaring demand for its equipment. But all of the analysts tracked by The Wall Street Journal think it's still a buy, and their consensus price target suggests more upside is ahead. Is this the ultimate under-the-radar AI opportunity for investors?

Image source: Getty Images.

Cohu's systems are critical to the manufacturing process Cohu sells equipment to chipmakers for the automotive, computing, mobile, industrial, consumer, and AI markets. The AI opportunity might be the largest in the company's history, and I'll go over some numbers in a moment.

Cohu's Eclipse platform handles the data center chips used in AI workloads, including graphics processing units (GPUs), central processors (CPUs), and high-bandwidth memory (HBM). Eclipse autonomously picks up finished semiconductors post-production and places them in test sockets, where it tests them by simulating real-world operating conditions. Automation is key to this testing process because a manual, human-driven alternative would significantly slow down production.

Then there is the Neon inspection and metrology platform, which closely analyzes the physical condition of memory chips. It uses infrared vision and AI software to identify microscopic cracks, imperfections, and other defects in semiconductor wafers, to ensure they are up to standard before shipping to customers. Neon can spot defects as small as 1 micron -- for some perspective, a human hair is around 70 microns thick.

Cohu is investing heavily in the Neon platform because of how quickly the memory market is moving. Manufacturers like Micron Technology are now shipping HBM4 to AI customers, with HBM5 in the pipeline, and every new generation is more complex than the last. During the first quarter of 2026 (ended March 31), orders soared by 64% year over year in Cohu's inspection and metrology business.

Cohu has a massive order pipeline Wall Street's consensus forecast (provided by Yahoo! Finance) suggests Cohu will deliver $558.5 million in total revenue in 2026, which would be a 23% increase from the prior year. That would mark an acceleration from the 13% growth it delivered in 2025, so the business has significant momentum right now.

But that picture could get even better, because Cohu has a $750 million sales pipeline from what it calls the high-performance computing segment, which includes AI accelerators, GPUs, and HBM-related customers. None of that $750 million has shown up in the company's financial statements yet, because the customers are still in the engagement and qualification phases of the sales process.

That means Cohu's revenue is likely to see a significant boost in the near future.

Should investors buy Cohu stock? The Wall Street Journal tracks seven analysts covering Cohu stock, and all seven have given it a buy rating. They have an average price target of $57.43, implying a potential upside of 24% over the next 12 months or so. The Street-high target of $65 implies an even greater potential gain of 40%.

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Those returns don't exactly sound explosive for a booming AI semiconductor company, but it's important to remember that Cohu stock is already up 160% over the last 12 months. Therefore, investors who buy the stock today might want to look beyond the next year to maximize their potential returns, and I'll explain why.

Cohu's business isn't consistently profitable, but that appears likely to change thanks to the incredible sales pipeline I highlighted earlier. As a result, Wall Street thinks the company could generate adjusted (non-GAAP) earnings of $0.58 in 2026, placing its stock at a forward price-to-earnings (P/E) ratio of 79.7. For some perspective, that makes the stock three times as expensive as Nvidia, which trades at a forward P/E ratio of 24.1.

However, the Street thinks Cohu could more than double its adjusted earnings to $1.46 per share in 2027, placing its stock at a forward P/E of 31.6. While that still isn't necessarily cheap, the trajectory of the company's earnings could attract a lot of investor interest going forward, particularly if 2028 and 2029 forecasts come in equally strong.

In summary, Wall Street's price targets for Cohu stock are probably achievable, but investors who take a longer-term view of three to five years could reap even greater rewards.

The crowd on Polymarket is pricing a 100% probability that SpaceX completes its IPO by June 30, with the offering targeted at $135 per share for a $75 billion raise. If that debut lands as a hit, Tesla (NASDAQ:TSLA) CEO Elon Musk gains a fresh public-equity lever to fund Terafab, the chip-manufacturing megafacility outlined in the SpaceX S-1 filing.

According to the filing, Terafab is a Tesla (March) and Intel (NASDAQ:INTC) (April) collaboration aiming to be the world’s largest chip manufacturing facility, with a long-term goal of one terawatt of annual compute production. Its strategy vertically integrates lithography masks, logic and memory fabrication, and advanced packaging. The catch: per the S-1, specific projects development timelines, milestones and capital expenditures “have not yet been determined.”

A successful SpaceX IPO would unlock a new megafab customer for semiconductor equipment makers, who get paid to outfit fabs regardless of chip prices. Below are five U.S.-listed equipment names ranked by exposure to Terafab’s priorities.

1. ASML (ASML) ASML (NASDAQ:ASML | ASML Price Prediction) sits at the top because Terafab can’t fabricate cutting-edge logic without extreme ultraviolet (EUV) lithography, and ASML is the sole supplier. CEO Christophe Fouquet noted that “the semiconductor industry’s growth outlook continues to solidify, driven by ongoing AI-related infrastructure investments. Demand for chips is outpacing supply.”

ASML’s FY2025 revenue hit $37.94 billion, EUV systems grew 39% to $13.47 billion, and year-end backlog reached a record $45.06 billion. ASML stock has climbed 62% year to date.

The bear case: China export controls and tariffs could clip near-term system sales. The valuation also requires AI capex to stay on its current trajectory into 2027 and beyond.

2. Lam Research (LRCX) Lam Research (NASDAQ:LRCX) supplies etch and deposition tools essential for memory chips, including the high-bandwidth memory (HBM) stacks that AI accelerators consume in bulk. Terafab’s focus on memory fabrication and advanced packaging puts Lam Research directly in line for incremental tool orders.

Lam Research’s Q3 FY2026 revenue hit a record $5.84 billion with non-GAAP EPS of $1.47, and June-quarter guidance points to around $6.6 billion. CEO Tim Archer credited “AI-driven demand reshaping the semiconductor industry.”

LRCX stock is up 89% year to date. If Terafab eventually adds significant memory supply, DRAM and NAND prices could weaken, yet Lam Research still collects equipment revenue.

3. Camtek (CAMT) Camtek (NASDAQ:CAMT) is an Israel-based inspection and metrology specialist concentrated in advanced packaging, the third pillar of Terafab’s vertical-integration strategy. CEO Rafi Amit described “an unprecedented start to the year in terms of incoming orders” and called the company “positioned at the epicenter of the AI market.”

Camtek’s Q1 FY2026 revenue came in at $121.66 million with non-GAAP EPS of $0.70, and management guided second-half 2026 to grow over 25% versus the first half. Camtek stock trades at a forward P/E ratio of 47x with a consensus analyst price target of $187.25.

Risks include Middle East geopolitics and Strait of Hormuz supply-chain exposure. CAMT shares are off 18.5% over the past month, a reminder that small-cap equipment names trade with sharp swings.

4. Onto Innovation (ONTO) Onto Innovation (NYSE:ONTO) provides process control, metrology and inspection tools for advanced packaging, HBM and gate-all-around logic, mirroring Terafab’s roadmap. Onto recently signed a $240 million-plus volume purchase agreement with a leading HBM manufacturer through 2027.

Onto Innovation’s Q1 FY2026 revenue reached $291.95 million, and management guided Q2 to $320 million to $330 million. CEO Mike Plisinski pointed to “global AI investment fueling a robust upcycle in semiconductor capital equipment spending.”

ONTO stock carries a trailing P/E ratio of 118x and an analyst target of $351.88. The valuation already prices in robust AI capex, so any delay in Terafab or HBM cooling could compress the multiple.

5. Cohu (COHU) Cohu (NASDAQ:COHU) rounds out the list as the early-cycle test and handling play. About 60% of Cohu’s revenue is recurring, and Cohu’s test-cell utilization rose to 78% at the end of March.

The company’s Q1 FY2026 revenue grew 29% to $125.12 million, though non-GAAP EPS of $0.01 missed the $0.03 estimate. Cohu’s management raised its FY2026 high-performance computing revenue outlook to $80 million to $100 million, against an AI-driven compute addressable market sized at around $750 million.

COHU stock has surged 132% year to date, reflecting cyclical recovery hopes. The bear case: Cohu’s ongoing GAAP losses, customer concentration, and tariff exposure leave little margin for execution slips.

What to Watch Now If SpaceX’s IPO succeeds and Musk uses public equity to advance Terafab, every front-end and back-end equipment vendor with logic, memory and packaging exposure stands to win incremental orders. The five names listed above sit closest to the action across lithography, etch and deposition, packaging inspection, metrology and test.

However, the thesis hinges on two unknowns: whether Terafab is built at the scale described in the S-1, and whether AI capex from buyers like Taiwan Semiconductor Manufacturing (NYSE:TSM), Samsung, and Micron Technology (NASDAQ:MU) stays elevated through 2027 and beyond. Export controls, tariffs, and the China overhang for ASML and Lam Research add uncertainty.

For investors in memory makers, equipment names can offer exposure to the AI buildout while hedging memory-price risk. Watch the SpaceX debut and any disclosure on Terafab capital expenditures and equipment partners.