• In early February 2026, analysts at B. Riley and Stifel highlighted Cohu’s exposure to accelerating AI-related demand across HBM, CoWoS, and GPU ecosystems, alongside recovering end markets in Taiwan, automotive, and industrial applications.
• This cluster of upbeat research attention underscores growing confidence in Cohu’s role in the semiconductor capital equipment chain as AI-related spending plans expand.
• We’ll now examine how this renewed confidence in AI-driven demand and capital spending filters through to Cohu’s broader investment narrative.

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What Is Cohu's Investment Narrative?

To own Cohu, you have to believe its test and handling gear will keep winning sockets as chipmakers ramp investment into AI-centric packaging and high-performance memory. That thesis has been challenged by recent losses and a multi‑year total return that trails much of the semiconductor space, even as revenue has begun to recover. The latest moves from B. Riley and Stifel, tying Cohu more explicitly to HBM, CoWoS and GPU demand, strengthen the near-term catalyst around an AI-capex upturn and help explain the strong share price move over the past quarter. At the same time, they do little to change the bigger risk that Cohu remains unprofitable and exposed to cyclical order swings just as expectations reset higher ahead of Q4 2025 results.

However, there is one risk in particular that recent optimism may be distracting you from. The valuation report we've compiled suggests that Cohu's current price could be inflated.

Exploring Other Perspectives

With one Simply Wall St Community fair value at US$29.60, you are seeing a tight starting point for opinions, while the AI-driven test demand thesis and ongoing losses leave plenty of room for very different conclusions about Cohu’s trajectory.

Explore another fair value estimate on Cohu - why the stock might be worth as much as $29.60!

Build Your Own Cohu Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cohu research is our analysis highlighting 1 key reward that could impact your investment decision.
• Our free Cohu research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cohu's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.