Cohu Inc. Signals Strong Recovery with $125M Q3 Revenue Outlook

In a promising turn of events for Cohu Inc., the semiconductor equipment manufacturer has projected a robust $125 million revenue outlook for the third quarter of 2025. This optimistic forecast comes as the company experiences rising utilization rates and secures new design wins, marking a significant recovery trajectory. The news, reported by Seeking Alpha on August 1, 2025, highlights Cohu’s resilience and strategic advancements in a competitive industry.

Cohu Inc., a US-based company listed on the Nasdaq, specializes in designing, manufacturing, and selling semiconductor test handling equipment. The company also produces closed circuit television, metal detection, and microwave equipment. Despite facing challenges earlier in the year, Cohu’s recent performance indicates a positive shift. The company’s close price on July 30, 2025, stood at $17.86, with a market capitalization of approximately $882.16 million.

Q2 2025: A Turnaround After a Challenging Start

Earlier in the year, Cohu faced a challenging first quarter, but the company managed to turn things around in the second quarter of 2025. According to a report from Investing.com on July 31, 2025, Cohu’s Q2 results showcased revenue growth and a positive earnings per share (EPS). This turnaround is a testament to the company’s ability to adapt and innovate in response to market demands.

The semiconductor industry, where Cohu operates, is known for its volatility and rapid technological advancements. Cohu’s ability to secure new design wins and increase utilization rates has been crucial in driving its recovery. These factors not only contribute to the company’s financial health but also position it well for future growth.

Industry Context: Challenges for Tech Giants

While Cohu Inc. is on a recovery path, the broader tech industry faces its own set of challenges. A report from Bloomberg on July 31, 2025, highlights the struggles of Apple Inc., a major player in the technology sector. Apple’s earnings report is unlikely to provide the catalyst investors need to revive its stock price, which has seen a nearly 17% decline this year. The company’s lack of a strong artificial intelligence strategy, high exposure to tariff risks, and regulatory scrutiny are contributing to its struggles.

Peter Andersen, founder and chief investment officer of Andersen Capital Management, commented on Apple’s situation, noting the company’s loss of innovation momentum. “Apple’s embarrassing AI shows how it has lost its mojo with innovation, and the lack of innovation speaks to the lack of revenue growth, and that speaks to why we don’t see upside in the stock,” Andersen said. Analysts expect Apple to report a modest 2.4% rise in quarterly profits and a 4.1% gain in revenues, lagging behind the tech sector’s anticipated earnings growth of 16.8%.

Looking Ahead

As Cohu Inc. continues to navigate the semiconductor industry’s complexities, its recent performance and strategic wins position it well for future success. The company’s ability to adapt and innovate will be crucial in maintaining its recovery trajectory. Meanwhile, the broader tech industry, exemplified by Apple’s challenges, underscores the importance of innovation and strategic agility in sustaining growth.

For investors and industry watchers, Cohu’s journey offers valuable insights into the dynamics of the semiconductor sector and the critical factors driving success in the ever-evolving tech landscape.