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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.

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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.