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Cohu Stock Soars on AI Chip Testing Boom
18 Jul
Summary
- Baird initiated coverage with an 'Outperform' rating and $65 target.
- AI demand is expected to more than double Cohu's high-performance computing revenue.
- Cohu's stock has surged 168% in the past 12 months.
Cohu, a company specializing in semiconductor test and inspection equipment, received a significant boost with Baird initiating coverage with an 'Outperform' rating and a $65 price target. This optimistic outlook propelled shares upward by 6% on July 9. The primary driver for this positive sentiment is the burgeoning artificial intelligence market.
Analysts predict Cohu's high-performance computing revenue could exceed $100 million this year, more than double its 2025 figures. Further growth avenues are anticipated heading into 2027 from potential deals currently undergoing customer testing. Recovery in automotive, industrial, and mobile markets also contributes to the company's positive outlook, with earnings expected to rise sharply from recent lows.
Cohu, founded in 1947 and headquartered in San Diego, California, has demonstrated impressive performance, with its stock surging 168% in the last 12 months, outperforming the semiconductor ETF. This growth is largely attributed to the increasing demand for testing AI and high-performance computing chips.
