• Cohu recently reported third-quarter 2025 earnings that surpassed expectations, with earnings per share coming in well ahead of forecasts and revenue slightly above estimates amid solid semiconductor demand.
• Analysts at Needham and Stifel responded by upgrading their views on Cohu, highlighting its exposure to high-bandwidth memory trends and an emphasis on structurally higher profitability.
• Next, we’ll examine how Cohu’s earnings surprise and high-bandwidth memory exposure shape its investment narrative over the past week.

Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.

What Is Cohu's Investment Narrative?

For Cohu to make sense in a portfolio, you need to believe its test-handling and inspection gear stays relevant as high‑bandwidth memory and broader semiconductor demand evolve, and that management can translate that demand into eventually sustainable profitability. The latest earnings surprise and the stock’s push to a 52‑week high reinforce the near‑term catalyst of improving sales trends, but they do not erase the reality that Cohu is still loss‑making and has seen losses widen over several years. The Needham and Stifel upgrades, centered on high‑bandwidth memory exposure and structurally higher margins, may strengthen the short‑term narrative around revenue recovery and cost discipline, yet they also raise the bar for execution. If those margin and growth expectations slip, the current optimism could reverse quickly.

However, investors should be aware that Cohu remains unprofitable despite the recent excitement. Our expertly prepared valuation report on Cohu implies its share price may be too high.

Exploring Other Perspectives

The Simply Wall St Community’s single fair value estimate of US$29.60 offers a narrow reference point rather than a broad spectrum of views. Set against recent earnings surprises and heightened expectations around high‑bandwidth memory, it underlines how even a seemingly tight valuation anchor can sit beside real uncertainty on when, or if, Cohu’s losses might narrow and margins improve.

Explore another fair value estimate on Cohu - why the stock might be worth just $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.

Curious About Other Options?

Our top stock finds are flying under the radar-for now. Get in early:

• This technology could replace computers: discover 23 stocks that are working to make quantum computing a reality.
• Find companies with promising cash flow potential yet trading below their fair value.
• We've found 13 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

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.