Cohu, Inc. (NASDAQ:COHU) is among the 7 Small-Cap Semiconductor Stocks to Buy According to Analysts.
On February 13, Needham lifted the price target on Cohu, Inc. (NASDAQ:COHU) to $33 from $30 and reiterated a Buy rating. This price target hike comes even after the reported Q4 2025 revenue that matched the estimates, but non-GAAP gross margins were meaningfully lower than the projection. This happened because of a one-time inventory charge, which represents 350 basis points of the total 420-basis-point shortfall.
For Q1 2026, Cohu, Inc. (NASDAQ:COHU) projects revenue to be flat QoQ, with non-GAAP gross margins anticipated to recover to nearly 45%. The firm pointed to a major data center design win at an analog/mixed-signal customer, expected to generate additional revenue in 2026, in addition to current High Bandwidth Memory and AI compute applications. With that said, Needham advised “buying the dip” in the stock and raised its forecasts.
On the same day, TD Cowen said the quarter miss can be ignored, but a roughly flat QoQ outlook will likely leave some disappointed. The firm’s analyst, Krish Sankar, raised the price target on Cohu, Inc. (NASDAQ:COHU) to $35 from $30 and maintained a Buy rating, citing healthy trends in its core financials.
Cohu, Inc. (NASDAQ:COHU) is a California-based provider of semiconductor test equipment and services. Founded in 1947, the company also provides AI process control and analytics-based monitoring software.
While we acknowledge the potential of COHU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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