Shares of semiconductor equipment maker Cohu Inc. (COHU) soared 6.54% in pre-market trading on Thursday, November 1, 2024, after the company reported better-than-expected third-quarter earnings and offered an upbeat outlook, fueling optimism about a recovery in the semiconductor industry.
Cohu reported a narrower-than-anticipated loss for the third quarter of 2024, as it navigated the cyclical trough in the semiconductor market. Despite declines in some segments, the company saw strong momentum in its mobile business, with a 13% year-over-year increase in revenue, driven by growing demand for advanced testing solutions.
Additionally, Cohu secured a significant design win with a top automotive semiconductor manufacturer, strengthening its position in the power management device testing market. The company also made progress in entering new markets, such as memory and silicon carbide power semiconductors, with a notable customer order for its neon inspection metrology platform.
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