Cohu Is Riding AI and HBM Trends But Execution Still Matters - Zacks Investment Research

Cohu is benefiting from the growing demand for semiconductor test equipment driven by AI and high-bandwidth memory (HBM) trends. The company expects Neon HBM revenues to rise 80% YoY to approximately ... Read original →

Cohu’s order surge reflects a cascading effect from AI chips and HBM3/4 stacking: denser I/O and 3D packaging yield demands are forcing customers to deploy next-gen handlers and inspection tools earlier. Yet tightening U.S. export controls on advanced computing, coupled with Korean memory makers accelerating localized procurement, raise compliance costs and constrain Cohu’s supply chain flexibility beyond the U.S. and Korea. With Teradyne locking in NVIDIA and AMD via UltraFLEX and Advantest cementing HBM test standards through V93000, Cohu must leverage software subscriptions and aftermarket stickiness to differentiate. Over the next 18 months, as HBM5 R&D ramps, test equipment shifts from capacity add-on to technology pre-positioning—Cohu’s growth sustainability hinges on converting its 25,300 installed systems into a data-driven service moat.