COHU vs TER

Key Takeaways

• TER is a much larger, consistently profitable semiconductor test and robotics leader, while COHU is a smaller recovery story still narrowing its net losses.
• Both companies are riding a surge in AI-driven test demand, but TER reports a higher share of AI-related revenue and broader end-market diversification.
• COHU has shown faster percentage revenue growth and expanded its AI compute pipeline, but its growth is more concentrated in a handful of high-performance computing customers.
• TER trades at a premium earnings multiple, reflecting its scale and consistency, while COHU carries elevated execution risk as it works toward sustained profitability.
• Relative performance diverges sharply: TER has compounded large multi-year gains, while COHU has been more volatile with a notable recent pullback after a strong year-to-date run.

Introduction

Cohu, Inc. (COHU) and Teradyne, Inc. (TER) both supply semiconductor test and inspection equipment, placing them at the center of the same artificial intelligence (AI) infrastructure build-out. Yet they operate at very different scales and stages of the profit cycle. This stock comparison is most relevant for investors weighing a large, profitable, diversified test equipment leader against a smaller, faster-growing turnaround candidate. Traders focused on momentum and relative performance, as well as long-term investors assessing market positioning across the semiconductor capital equipment sector, may find the contrast instructive.

COHU Overview and Recent Performance

Cohu, Inc. (COHU) designs and sells semiconductor test handlers, contactors, inspection systems, and recurring software and services. Its business centers on thermal test handlers for high-power AI processors and inspection tools used in advanced packaging and high-bandwidth memory (HBM) production.

Recent market activity has been mixed. Cohu reported a strong quarter in recent weeks, with revenue rising roughly 38% year over year and non-GAAP (adjusted) earnings per share beating analyst estimates. Management expanded its AI-driven compute opportunity pipeline to approximately $850 million and raised its high-performance computing revenue outlook for the year. Recurring revenue has grown to more than half of total sales, improving revenue quality.

At the same time, Cohu remains unprofitable on a GAAP (Generally Accepted Accounting Principles) basis, with a trailing net loss that has narrowed but not yet turned positive. Insider selling and customer concentration in a few large high-performance computing programs have tempered sentiment, and the stock pulled back sharply over a recent 30-day stretch even after a strong start to the year. The narrative hinges on whether AI and HBM program ramps convert its pipeline into sustained earnings.

TER Overview and Recent Performance

Teradyne, Inc. (TER) is a larger, diversified supplier of automated test equipment and robotics. Its Semiconductor Test business covers system-on-chip (SoC) and memory testing, while its Product Test and Robotics segments extend exposure into electronics manufacturing and industrial automation.

Recent results have been exceptionally strong. In its most recent quarter, revenue roughly doubled year over year, and adjusted earnings per share came in well above consensus estimates. Management attributed the outperformance to broad AI demand across compute, memory, storage, and networking, with AI-related applications generating a majority of total revenue. Teradyne has also expanded into optical and connectivity testing and secured its first merchant GPU (graphics processing unit) test orders, positioning for further share gains.

Teradyne is solidly profitable, with operating margins in the low-to-mid 30% range, and it carries a market capitalization in the tens of billions of dollars. Its shares have delivered large multi-year and one-year total returns, though a recent 90-day pullback and a premium earnings multiple have prompted debate about whether much of the AI upside is already reflected in the price.

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Head-to-Head Comparison

Scale is the clearest divide. Teradyne generates more than eight times Cohu's quarterly revenue and is consistently profitable, while Cohu is still working its way back to GAAP profitability. This gap shapes risk profiles: Teradyne offers broader diversification across semiconductor test, robotics, and product test, whereas Cohu's growth is more concentrated in high-performance computing handlers and HBM inspection.

On growth, Cohu has posted faster percentage revenue expansion and raised its outlook, reflecting the early-stage inflection of a smaller base. Teradyne's growth, while enormous in absolute terms, comes from a much larger revenue foundation and a more mature profit model. Sector exposure differs too: both benefit from AI data center spending, but Teradyne also taps industrial automation and electronics manufacturing, providing some cushion if a single AI program stalls.

Momentum and valuation present opposing trade-offs. Teradyne trades at a high price-to-earnings ratio after a multi-year rally, while Cohu's valuation rests on forward earnings power that has not yet been proven. Risk factors include customer concentration for Cohu and lumpy AI order timing for Teradyne, alongside shared exposure to semiconductor capital spending cycles.

Tickeron AI Verdict

Based on observable factors, Tickeron's AI would likely lean toward TER for its combination of trend consistency, profitability, diversified revenue streams, and confirmed AI catalysts. Teradyne's established earnings base and multi-year momentum offer a more stable foundation than Cohu's still-unproven recovery. That said, COHU presents a potentially higher-beta opportunity, with faster growth and an expanding pipeline that could drive sharper gains if its AI programs convert as planned. The probabilistic edge favors the larger, more consistent player, while acknowledging that a stronger-than-expected Cohu inflection could shift relative positioning.

Disclaimer

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