Bullish Stock Charts of AEM, Advantest, Cohu, Teradyne Show Strong Correlation

Few sectors capture investors' imagination like Artificial Intelligence, in particular, and tech, in general. While Nvidia, AMD, etc are in the forefront of the industry, there are companies at the far backend which ride along. These companies test semiconductor chips before they are integrated into devices. With increasingly voluminous production of chips, testers are seeing their stocks take off. Take a look at the 1-year stock charts for the key players -- Advantest Corp, Cohu Inc, Teradyne Inc, and AEM Holdings.

 
These charts reflect investor optimism of the semiconductor boom leading to a surge in chip testing. Expect more upward thrusts. Charts shared by a reader



There has been an uncanny correlation in the stock movement of the 4 peers in the 12 months.

From 2Q 2025 falls (likely arising from Trump's shock tariff announcements) to sharp recoveries in 2H2025, these charts paint a bullish picture: jagged lines climbing steadily upward.

These stocks are accelerating, driven by projections of the semiconductor industry hitting record highs, thanks particularly to generative AI and massive data center expansions.

Tokyo-listed Advantest says it dominates with ~60% share of the test market.

In its niche, Singapore-listed AEM Holdings stands out with its specialized test solutions for advanced computing, AI and 5G ecosystems.

"The ongoing wave of advanced packaging, AI, high performance compute is reshaping how devices are designed, assembled, and tested. The trends are increasing the thermal and automation demands at every stage of test from early deployment to volume manufacturing. This is an area where AEM has distinct advantages." -- CEO Samer Kabbani (at 1HFY25 earnings call)

DBS Research said recently: "AEM is a pioneer in providing SLT (system-level test) solutions and is around one generation ahead of its competitors.

"Given its technological superiority, we believe AEM is well positioned to ride on the growing SLT (system level test) market that has benefitted from the increased complexity of chips and higher test coverage requirements, alongside the need for advanced heterogeneous packaging."

AEM’s precision thermal control and advanced automation provide a competitive edge.

AEM's flagship client is Intel, a dominant and reviving force, along with unidentified new customers (speculated to be AMD and Micron).

As for valuation, the 4 testing companies' price-earnings metrics are reflecting strong growth expectations. 

Without going into the companies' specific businesses and other valuation metrics, here's a snapshot as of 31 Oct 2025 (sourced from Yahoo Finance):

→ For more, see: AEM: Flat 2025 Outlook, but New Customers' Ramp Sets Stage for FY26 Growth