Kokyo Semiconductor's financial report improvement boosts stock prices, with AI and high-bandwidth memory business becoming growth engines

CooSoo Semiconductor (COHU.OQ) reported its latest financial results, showing improved financial performance that boosted its stock price. As of February 11, 2026, the company’s stock closed at $34.15, up 4.98% for the day, with a year-to-date increase of 46.76%, breaking a 60-day high.

Operational Performance

In Q3 2025 (ending September), revenue reached $126.2 million, a 17.2% increase quarter-over-quarter, marking the fourth consecutive quarter of improvement; non-GAAP gross margin was 44.1%, in line with guidance. Although a net loss was still recorded for the quarter, the loss narrowed significantly by 75.7% quarter-over-quarter, indicating a notable increase in operational efficiency. Management expects recurring revenue to account for approximately 60% of total revenue in Q4, which will help stabilize gross margins.

Business Developments

The company has raised its revenue forecast for high-bandwidth memory testing systems in 2025 to $10-11 million, with AI-related system revenue expected to be around $40 million. Revenue contribution from computing business in 2026 is projected to reach low double digits percentage-wise, demonstrating progress in its AI computing power testing sector. Additionally, signs of recovery are emerging in automotive and industrial demand, with capacity utilization expected to rebound in the first and second quarters of 2026.

Funding Movements

On February 10, 2026, CooSoo Semiconductor’s single-day trading volume reached $25.21 million, with a turnover rate of 1.66%, attracting attention from major funds. Institutional ratings show a 100% buy or hold increase among covering analysts, with an average target price of $30.60 (current stock price at $34.15 slightly above this). A report from Donghai Securities in February 2026 highlighted that rising storage prices and AI technological shifts are driving structural opportunities in the semiconductor sector.

Stock Price Performance

The stock price increased by 19.03% over the past five days, stabilizing above multiple moving averages, indicating strong short-term momentum. The semiconductor sector overall gained 2.40% during the same period, benefiting from expanding AI computing demand.

Future Outlook

The company’s trailing twelve months (TTM) price-to-earnings ratio is negative (-21.75), reflecting ongoing profitability challenges. If recurring revenue growth or AI order fulfillment falls short of expectations in subsequent quarters, it could impact the stock’s sustainability.

The above information is compiled from publicly available sources and does not constitute investment advice.