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Cohu Inc (COHU) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company shows potential in AI-driven markets and has seen revenue growth, the recent financial performance, insider selling trends, and significant post-market price drop suggest caution. The absence of strong trading signals and mixed sentiment from technical and options data further supports a hold recommendation.
The MACD is positive and contracting, suggesting weakening bullish momentum. RSI is neutral at 66.54, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading below key support levels (S1: 28.172, S2: 26.398), indicating potential downside risk.

Analysts have upgraded the stock recently, citing strong AI-driven demand and long-term growth potential in HBM and related markets.
Revenue grew 29.86% YoY in Q4 2025, showcasing strong top-line growth.
Insiders are selling heavily, with a 4176.32% increase in selling activity over the last month.
The company reported a net loss of $22.5 million in Q4 2025, with non-GAAP EPS missing expectations by $0.
The stock experienced a significant post-market drop of -19.10%, reflecting negative sentiment.
In Q4 2025, revenue increased by 29.86% YoY to $122.23 million, and gross margin improved by 7.92% YoY to 34.07%. However, the company reported a net loss of $22.49 million, and EPS remained negative at -$0.48, though slightly improved YoY.
Analysts have a positive outlook, with recent upgrades and price target increases. B. Riley raised the price target to $35, citing AI-driven demand and recovery in Auto & Industrial sectors. Needham upgraded the stock to Buy with a $30 price target, highlighting its potential as a hidden HBM play.