Cohu (COHU) Releases Results for Q2 2025

Cohu, Inc. (NASDAQ:COHU) is one of the Best Semiconductor Stocks to Buy Under $20. On July 31, the company released its results for Q2 2025, wherein the test cell utilization was up a few points throughout all Cohu segments, and it secured a $28 million design-win order from a customer serving mobile and automotive end markets. For Q3 2025, Cohu, Inc. (NASDAQ:COHU) expects sales of $125 million (+/- $7 million). The company’s estimated test cell utilization rose by 3 points Q-o-Q to 75%, demonstrating that the industry has been entering a recovery cycle. Orders saw an improvement Q-o-Q, mainly due to the mobile end market.

Cohu (COHU) Releases Results for Q2 2025

A robotic arm placing a semiconductor chip on a test contactor.

Cohu, Inc. (NASDAQ:COHU) also secured its first system order from a customer in India for silicon carbide test. This resulted in the opening of new geographical opportunity for its products. Recurring revenue, which is largely consumable-driven and more stable compared to systems revenue, accounted for 63% of total revenue in Q2 2025. Cohu, Inc. (NASDAQ:COHU) highlighted that the gross margin for Q3 2025 is expected to be ~44%. The Q3 2025 revenue mix is projected to consist of ~47% from systems, primarily test automation systems for the mobile market, and ~53% from recurring revenue.

While we acknowledge the potential of COHU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COHU and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.