Cohu Soars on AI Boom: Will It Double in Value?

Cohu is a semiconductor equipment and component supplier that's flying under the radar. While investors are flocking to Nvidia and Micron Technology, they might be missing out on this super semiconductor stock that could soar in value over the next few years.

The company supplies testing and handling machines that play a crucial role in the quality control process for chip manufacturers. Its Eclipse platform handles data center chips used in AI workloads, while its Neon inspection and metrology platform analyzes the physical condition of memory chips using AI software and infrared vision.

Cohu's production capacity is increasing rapidly, with plans to double it by 2026 and further expand in 2027. The company's revenue growth is accelerating, with Wall Street estimates predicting a 35% increase to $612 million in 2026. Cohu also has an $850 million sales pipeline from the high-performance computing segment, primarily driven by AI semiconductor manufacturing customers.

The stock isn't cheap, but analysts predict it could offer significant upside over the long term. With a forward P/E ratio of 70.5 in 2026 and 36.2 in 2027, investors who take a five-year view might still earn blistering returns.