Two consecutive large earnings misses, a stock already trading above its resistance target with a negative risk/reward ratio, an 18% short interest the data characterizes as warranted, and a quality profile below the minimum acceptable floor combine to present a comprehensively cautionary picture — the weight of evidence does not support new exposure.
Thesis pillars
- Quality Below Minimum Floor↓Deteriorating
- Consecutive Large Earnings Misses↓Deteriorating
- Above Resistance Negative Risk Reward↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 17, 2026· older than 90 days
Cohu, Inc. (COHU) Stock Analysis
Technology · Semiconductor Equipment & Materials
Sell if holding. Engine safety override at $43.98: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 6.0/10 and A.R:R 3.2:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 23%; Elevated put/call ratio: 1.40; Below-average business quality.
Cohu is a global supplier of semiconductor test automation, inspection and interface equipment, serving integrated device manufacturers, OSATs and fabless companies with an installed base of over 25,000 systems across 108 customers in 31 countries. Recurring revenue from... Read more
Sell if holding. Engine safety override at $43.98: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 6.0/10 and A.R:R 3.2:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 23%; Elevated put/call ratio: 1.40; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 6.0/10, moderate confidence.
Passes 6/8 gates (favorable risk/reward ratio, no SEC red flags, news events none recent, earnings proximity 98d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: speculative.
About Cohu, Inc.
About Cohu, Inc.
Cohu supplies semiconductor test automation, inspection, interface, and software analytics equipment from an installed base exceeding 25,000 systems across more than 280 manufacturing facilities and 108 customers in 31 countries. Fiscal 2025 R&D spending reached $92.2 million, and recurring revenue, spanning interface products, spares, software and services, made up 60% of net sales versus 40% from systems, as the company targets a roughly $3 billion serviceable available market in AI-driven test and inspection.
Cohu's customers fall into three groups: integrated device manufacturers that design and test their own chips, outsourced semiconductor assembly and test (OSAT) providers serving fabless customers, and fabless semiconductor companies that influence test strategy through OSAT partners. STMicroelectronics was the only customer exceeding 10% of net sales in the past three years, at 12.0% in 2023, falling below that threshold in 2024 and 2025. Product lines span test automation with active thermal control, six-sided optical inspection and metrology, semiconductor ATE for RF, digital and mixed-signal testing, interface products such as test contactors and probe cards, and an AI-driven software analytics platform. Manufacturing is concentrated geographically, with Cohu's largest facility in Melaka, Malaysia, supplemented by smaller U.S. and German product-development sites and additional interface-product plants in the Philippines, Singapore and Japan; Cohu competes against Advantest, Teradyne, Hon Precision and KLA. Backlog stood at $165.1 million at fiscal year-end 2025, up from $138.0 million a year earlier.
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Two concentrations stand out in Cohu's own risk factors: on the demand side, the ten largest customers represented 60% of total revenue in 2025, in an industry the company itself describes as having a few large customers accounting for most sales; on the supply side, Cohu states it depends upon Jabil to manufacture most of its semiconductor test systems from a single facility in Malaysia, and warns that unexpected downtime there could leave it unable to fulfill customer orders with no assurance that alternative capacity could be obtained on favorable terms. Many key parts are also sourced from single or limited suppliers, compounding the manufacturing-side exposure.
See also: Technology · Semiconductor Equipment & Materials
From Cohu, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated Oct 29, 2026Recent Developments — Cohu, Inc.
Latest news
- NEWS B. Riley Adjusts Cohu Price Target to $75 From $69, Maintains Buy Rating — fiscal.ai Oct 29, 2026 positive
- NEWS Jefferies Maintains Buy Rating on Cohu, Raises Price Target to $90 — fiscal.ai Oct 29, 2026 positive
- NEWS B. Riley Securities Maintains Buy on Cohu, Raises Price Target to $75 — benzinga Oct 29, 2026 positive
- NEWS Robert W. Baird Reaffirms 'Outperform' Rating on Cohu — fiscal.ai Oct 29, 2026 positive
- NEWS Stifel Maintains Buy on Cohu, Raises Price Target to $75 — benzinga Oct 29, 2026 positive
Latest item Oct 29, 2026 · Generated 2026-11-05T11:39:29Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomertop-ten customers60%10-K Item 1A: 'In 2025, our ten largest customers represented 60% of total revenue.'
- HIGHSupplierJabil (contract manufacturer, Malaysia)10-K Item 1A: 'we depend upon Jabil to manufacture most of our semiconductor test systems from its facility located in Malaysia.'
- HIGHSuppliersingle- or limited-source component suppliers10-K Item 1A: 'Many key parts may be available only from a single supplier or a limited number of suppliers, increasing our vulnerability to supply interruptions.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
3 floor-breakers·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Volatile — 10.6% daily ATR makes tight stops impractical. Position-size conservatively.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $43.98: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 6.0/10 and A.R:R 3.2:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 23%; Elevated put/call ratio: 1.40; Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $41.86. Score 6.0/10, moderate confidence.
Analyst target: $64.92 (+47.6% upside). Prior stop was $41.86. Stop-loss: $41.86.
Concentration risk — Customer: top-ten customers (60.0%); Concentration risk — Supplier: Jabil (contract manufacturer, Malaysia); Risk below floor (2.9 < 3.0).
Cohu, Inc. trades at a P/E of N/A (forward 18.6). TrendMatrix value score: 8.3/10. Verdict: Sell.
14 analysts rate COHU, with a consensus score of 4.3/5. 8 analysts publish price targets averaging $75.
What does Cohu, Inc. do?Cohu is a global supplier of semiconductor test automation, inspection and interface equipment, serving integrated...
Cohu is a global supplier of semiconductor test automation, inspection and interface equipment, serving integrated device manufacturers, OSATs and fabless companies with an installed base of over 25,000 systems across 108 customers in 31 countries. Recurring revenue from interface products, services and software made up 60% of fiscal 2025 net sales, while the company's ten largest customers accounted for 60% of total revenue and semiconductor test system manufacturing depends heavily on contract manufacturer Jabil's facility in Malaysia.