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AEHR vs. COHU: Which Semiconductor Equipment Stock Is The Better Buy?
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Key Takeaways
AEHR's AI processor orders and diversification are driving a stronger growth profile.
AEHR expects fiscal 2027 revenues of $130 million to $150 million, up 2.6 to 3 times fiscal 2026 levels.
COHU is expanding in HPC, HBM inspection, power semiconductors and software analytics.
The semiconductor equipment industry is evolving alongside rising chip complexity, advanced packaging requirements and growing demand for specialized testing solutions. These trends are increasing the importance of efficient test and inspection capabilities across the semiconductor manufacturing cycle while also creating varied growth opportunities for equipment providers.
Aehr Test Systems, Inc. (AEHR - Free Report) and Cohu, Inc. (COHU - Free Report) both serve the semiconductor testing market but differ in their product portfolios, customer exposure and growth strategies. AEHR has a more focused presence in wafer-level and burn-in test solutions, while COHU offers a broader range of semiconductor test and handling equipment. Their differing business mixes and strategic priorities provide a useful basis for comparing fundamentals, growth durability and long-term prospects.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for AEHR
Aehr, with a market cap of $2.6 billion, enters fiscal 2027 with a significantly broader revenue base than it had two years ago. Nearly 95% of fiscal 2026 revenues came from markets outside silicon carbide for EVs, with AI accelerators, CPUs and network processors accounting for about 71% of annual revenues. Silicon photonics contributed another 20%, giving the company greater exposure to AI infrastructure and data-center demand.
AI-related wafer-level burn-in remains the key growth engine. Aehr’s lead AI processor customer has doubled its FOX system purchases and is forecasting higher wafer allocations, while another major AI processor supplier completed benchmark testing with results that exceeded expectations and is considering pilot production validation. The latter opportunity could generate revenues from both FOX systems and WaferPak contactors if it advances to production. In August 2026, Aehr received a $22 million follow-on production order from its lead AI processor customer for multiple fully automated FOX-XP wafer-level burn-in systems, FOX WaferPak contactors and Auto Aligners.
Silicon photonics is another growth avenue as AI data centers increasingly rely on optical I/O and high-speed interconnects. Aehr’s lead customer continues to place follow-on orders, while a newer networking customer has already ordered two FOX wafer test cells and two FOX-NP systems and provided a forecast for additional systems as it expands capacity for hyperscale data-center deployments.
The company is also expanding into power semiconductors, with more than a dozen GaN WaferPak designs being sampled by potential customers and its first FOX system sold for a silicon MOSFET wafer-level burn-in application. Aehr is simultaneously working to broaden its opportunity in memory, including NAND and HBM-related applications. It is also developing memory-optimized Blades for its FOX-XP and FOX-NP platforms, with potential orders targeted for fiscal 2027 and production ramps potentially extending into fiscal 2028.
The expanding demand is supported by strong order visibility. Aehr ended fiscal 2026 with a record backlog of $80.6 million, which rose to about $100.6 million following subsequent bookings, providing solid visibility into upcoming shipments. In the fourth quarter of fiscal 2026, its net revenues grew 33.3% year over year. The company expects fiscal 2027 revenues of $130 million to $150 million, representing 2.6 to 3 times fiscal 2026 revenues.
AEHR beat earnings estimates in three of the past four quarters and met once, with an average surprise of 321.9%.
Aehr Test Systems Price, Consensus and EPS Surprise
Cohu, with a market cap of $2.3 billion, is benefiting from a recovery in core semiconductor markets alongside increasing demand for equipment tied to AI infrastructure. In the second quarter of 2026, its net sales rose 38.4% year over year to $149 million, while computing represented 46% of system orders and increased 150% year over year. Industrial orders also grew 87%, pointing to broader improvement beyond the high-performance computing market.
Its Eclipse thermal handlers are gaining traction with high-performance computing customers, while the company is also expanding its presence with fabless chipmakers and hyperscalers as their programs move from qualification into production. COHU is broadening its growth opportunities beyond HPC through HBM inspection, power semiconductors and advanced connectivity. The company has shipped inspection systems for HBM3, HBM4 and HBM4E and is pursuing opportunities tied to GaN devices and next-generation connectivity.
COHU is also expanding its focus on software analytics, which could increase the recurring revenue contribution to its business. Its PACE analytics platform is gaining adoption among HPC customers, while the company is developing on-site AI capabilities that allow semiconductor manufacturers to analyze equipment and production data within their own facilities.
Cohu is also increasing manufacturing capacity to accommodate the growing HPC pipeline. Production of HPC handlers in Malaysia is being expanded substantially, with additional capacity planned through 2027. At the same time, the company continues investing in R&D and production resources to pursue design wins across AI data centers, HBM and physical AI applications.
Cohu beat earnings estimates in two of the past four quarters and missed twice.
However, in the second quarter of 2026, management reported that rising HPC demand has lengthened lead times and increased input costs for certain semiconductors and specialty components. The company is securing critical parts where possible, but shortages could still affect delivery schedules, profitability or customer pricing. Automotive system orders also fell 24% year over year, showing that recovery remains uneven across end markets.
How Do Estimates Compare for AEHR & COHU?
The consensus mark for AEHR’s fiscal 2027 earnings has jumped by 54 cents to 70 cents per share over the past 60 days. The company reported earnings of 3 cents per share in fiscal 2026.
The Zacks Consensus Estimate for COHU’s 2026 earnings is pegged at 97 cents per share, which increased by 37 cents over the past 30 days.
Price Performance Comparison
In the year-to-date period, AEHR outperformed COHU and the S&P 500.
Price Performance – AEHR, COHU & S&P 500
Image Source: Zacks Investment Research
Valuation: AEHR vs. COHU
Coming to the valuation story, it seems that investors are willing to pay a premium for Aehr compared to Cohu. This is reflected in AEHR’s forward 12-month price/sales (P/S) of 16.56X compared with COHU’s 3.24X.
Image Source: Zacks Investment Research
Price Target
Aehr currently trades below its average analyst price target of $130, implying an attractive 43.7% potential upside from current levels. Meanwhile, Cohu currently trades below its average analyst price target of $70.88, implying a 37.1% potential upside from current levels.
Conclusion
Both Aehr and Cohu are positioned to benefit from rising semiconductor testing demand, particularly from AI infrastructure and advanced devices. Cohu offers a broader product portfolio and is expanding across HPC, HBM inspection, power semiconductors and software analytics, while Aehr is gaining momentum across AI processors, silicon photonics, power semiconductors and memory applications.
However, AEHR appears to have the stronger growth profile at present, supported by rapid business diversification, a record backlog, growing AI-related orders and an ambitious fiscal 2027 revenue outlook. Despite trading at a significantly higher valuation than COHU, its stronger growth visibility and expanding opportunities across multiple high-growth semiconductor markets make AEHR the better buy now. AEHR currently carries a Zacks Rank #2 (Buy), while COHU has a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
AEHR vs. COHU: Which Semiconductor Equipment Stock Is The Better Buy?
Key Takeaways
The semiconductor equipment industry is evolving alongside rising chip complexity, advanced packaging requirements and growing demand for specialized testing solutions. These trends are increasing the importance of efficient test and inspection capabilities across the semiconductor manufacturing cycle while also creating varied growth opportunities for equipment providers.
Aehr Test Systems, Inc. (AEHR - Free Report) and Cohu, Inc. (COHU - Free Report) both serve the semiconductor testing market but differ in their product portfolios, customer exposure and growth strategies. AEHR has a more focused presence in wafer-level and burn-in test solutions, while COHU offers a broader range of semiconductor test and handling equipment. Their differing business mixes and strategic priorities provide a useful basis for comparing fundamentals, growth durability and long-term prospects.
Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for AEHR
Aehr, with a market cap of $2.6 billion, enters fiscal 2027 with a significantly broader revenue base than it had two years ago. Nearly 95% of fiscal 2026 revenues came from markets outside silicon carbide for EVs, with AI accelerators, CPUs and network processors accounting for about 71% of annual revenues. Silicon photonics contributed another 20%, giving the company greater exposure to AI infrastructure and data-center demand.
AI-related wafer-level burn-in remains the key growth engine. Aehr’s lead AI processor customer has doubled its FOX system purchases and is forecasting higher wafer allocations, while another major AI processor supplier completed benchmark testing with results that exceeded expectations and is considering pilot production validation. The latter opportunity could generate revenues from both FOX systems and WaferPak contactors if it advances to production. In August 2026, Aehr received a $22 million follow-on production order from its lead AI processor customer for multiple fully automated FOX-XP wafer-level burn-in systems, FOX WaferPak contactors and Auto Aligners.
Silicon photonics is another growth avenue as AI data centers increasingly rely on optical I/O and high-speed interconnects. Aehr’s lead customer continues to place follow-on orders, while a newer networking customer has already ordered two FOX wafer test cells and two FOX-NP systems and provided a forecast for additional systems as it expands capacity for hyperscale data-center deployments.
The company is also expanding into power semiconductors, with more than a dozen GaN WaferPak designs being sampled by potential customers and its first FOX system sold for a silicon MOSFET wafer-level burn-in application. Aehr is simultaneously working to broaden its opportunity in memory, including NAND and HBM-related applications. It is also developing memory-optimized Blades for its FOX-XP and FOX-NP platforms, with potential orders targeted for fiscal 2027 and production ramps potentially extending into fiscal 2028.
The expanding demand is supported by strong order visibility. Aehr ended fiscal 2026 with a record backlog of $80.6 million, which rose to about $100.6 million following subsequent bookings, providing solid visibility into upcoming shipments. In the fourth quarter of fiscal 2026, its net revenues grew 33.3% year over year. The company expects fiscal 2027 revenues of $130 million to $150 million, representing 2.6 to 3 times fiscal 2026 revenues.
AEHR beat earnings estimates in three of the past four quarters and met once, with an average surprise of 321.9%.
Aehr Test Systems Price, Consensus and EPS Surprise
Aehr Test Systems price-consensus-eps-surprise-chart | Aehr Test Systems Quote
The Case for COHU
Cohu, with a market cap of $2.3 billion, is benefiting from a recovery in core semiconductor markets alongside increasing demand for equipment tied to AI infrastructure. In the second quarter of 2026, its net sales rose 38.4% year over year to $149 million, while computing represented 46% of system orders and increased 150% year over year. Industrial orders also grew 87%, pointing to broader improvement beyond the high-performance computing market.
Its Eclipse thermal handlers are gaining traction with high-performance computing customers, while the company is also expanding its presence with fabless chipmakers and hyperscalers as their programs move from qualification into production. COHU is broadening its growth opportunities beyond HPC through HBM inspection, power semiconductors and advanced connectivity. The company has shipped inspection systems for HBM3, HBM4 and HBM4E and is pursuing opportunities tied to GaN devices and next-generation connectivity.
COHU is also expanding its focus on software analytics, which could increase the recurring revenue contribution to its business. Its PACE analytics platform is gaining adoption among HPC customers, while the company is developing on-site AI capabilities that allow semiconductor manufacturers to analyze equipment and production data within their own facilities.
Cohu is also increasing manufacturing capacity to accommodate the growing HPC pipeline. Production of HPC handlers in Malaysia is being expanded substantially, with additional capacity planned through 2027. At the same time, the company continues investing in R&D and production resources to pursue design wins across AI data centers, HBM and physical AI applications.
Cohu beat earnings estimates in two of the past four quarters and missed twice.
Cohu, Inc. Price, Consensus and EPS Surprise
Cohu, Inc. price-consensus-eps-surprise-chart | Cohu, Inc. Quote
However, in the second quarter of 2026, management reported that rising HPC demand has lengthened lead times and increased input costs for certain semiconductors and specialty components. The company is securing critical parts where possible, but shortages could still affect delivery schedules, profitability or customer pricing. Automotive system orders also fell 24% year over year, showing that recovery remains uneven across end markets.
How Do Estimates Compare for AEHR & COHU?
The consensus mark for AEHR’s fiscal 2027 earnings has jumped by 54 cents to 70 cents per share over the past 60 days. The company reported earnings of 3 cents per share in fiscal 2026.
The Zacks Consensus Estimate for COHU’s 2026 earnings is pegged at 97 cents per share, which increased by 37 cents over the past 30 days.
Price Performance Comparison
In the year-to-date period, AEHR outperformed COHU and the S&P 500.
Price Performance – AEHR, COHU & S&P 500
Image Source: Zacks Investment Research
Valuation: AEHR vs. COHU
Coming to the valuation story, it seems that investors are willing to pay a premium for Aehr compared to Cohu. This is reflected in AEHR’s forward 12-month price/sales (P/S) of 16.56X compared with COHU’s 3.24X.
Image Source: Zacks Investment Research
Price Target
Aehr currently trades below its average analyst price target of $130, implying an attractive 43.7% potential upside from current levels. Meanwhile, Cohu currently trades below its average analyst price target of $70.88, implying a 37.1% potential upside from current levels.
Conclusion
Both Aehr and Cohu are positioned to benefit from rising semiconductor testing demand, particularly from AI infrastructure and advanced devices. Cohu offers a broader product portfolio and is expanding across HPC, HBM inspection, power semiconductors and software analytics, while Aehr is gaining momentum across AI processors, silicon photonics, power semiconductors and memory applications.
However, AEHR appears to have the stronger growth profile at present, supported by rapid business diversification, a record backlog, growing AI-related orders and an ambitious fiscal 2027 revenue outlook. Despite trading at a significantly higher valuation than COHU, its stronger growth visibility and expanding opportunities across multiple high-growth semiconductor markets make AEHR the better buy now. AEHR currently carries a Zacks Rank #2 (Buy), while COHU has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.