Shares of Cohu surged 22.2% to $56.74 in pre-market trading after the semiconductor test-equipment maker posted second-quarter results that blew past expectations and raised its outlook, betting that the artificial-intelligence boom will keep driving demand for its chip-handling machines. Cohu Crushes Earnings on AI Chip-Testing Demand — But Is a 22% Pop Pricing In Perfection for a Company Still Barely Profitable?

Shares of Cohu rocketed 22.2% to $56.74 in pre-market trading after the semiconductor test-equipment maker delivered a second quarter that blindsided Wall Street, raising a critical question: whether this niche toolmaker can convert an AI-driven order surge into durable profits.

  • The Earnings Beat Was Decisive, Not Marginal. Cohu reported non-GAAP earnings of $0.26 per share, nearly doubling the $0.14 consensus estimate.

Revenue hit $149 million, up 38% year over year , while non-GAAP gross margins held at 45.5%. That profit swing matters: the company lost $0.22 per share for all of 2025. Cohu flipped from deep red to meaningfully positive in a single quarter, signaling its high-growth AI orders are beginning to carry real margin.

  • Management Raised Its AI Bet — Again. Cohu lifted its full-year high-performance computing revenue forecast to $100–$110 million , up from $80–$100 million guided just last quarter and $60–$85 million at the start of the year. The company also increased its AI-driven computing opportunity pipeline to roughly $850 million. The driver is its specialized chip-handling equipment — machines that test and thermally manage the massive processors powering AI data centers. A manufacturing expansion in Malaysia is on track to double output by year-end and triple it by late 2027.

  • The Guidance Points to Acceleration, Not a Peak. Cohu guided Q3 revenue to approximately $170 million , which would represent 14% sequential and 35% year-over-year growth.

Test cell utilization — a proxy for how busy the chip industry's testing capacity is — hit 80% at the end of June , a level that historically triggers new equipment orders. Automotive, however, remains a laggard, with utilization stuck around 77–78% and not expected to recover until early 2027.

  • Insiders Have Been Selling Into the Rally. Of 12 insider trades over the past six months, all 12 were sales — zero purchases.

Three executives collectively sold 68,411 shares worth roughly $3.2 million in May alone, including CEO Luis Müller offloading 45,154 shares. That doesn't invalidate the growth story, but it's a signal investors shouldn't ignore: the people closest to the business chose to take money off the table well before this earnings print.

The bottom line: Cohu is riding a genuine structural shift in AI chip demand, with $498 million in cash to fund capacity. But the stock has gained over 40% in three sessions, pricing in substantial execution ahead — from a company that was losing money just two quarters ago.