Cohu, Inc. (NASDAQ:COHU) is one of the Best Semiconductor Stocks to Invest In Now. On March 18, Stifel analyst Brian Chin lifted the firm’s price objective on Cohu, Inc. (NASDAQ:COHU)’s stock to $34 from $32, while keeping a “Buy” rating. The analyst noted the company’s announcement, wherein a leading US semiconductor IDM (integrated device manufacturer) and foundry gave orders for multiple Eclipse platforms.

This is to support testing of high-performance compute AI processors. As a result, this highlights that Cohu, Inc. (NASDAQ:COHU)’s AI test-driven revenue continues to accelerate.

In a different update, on March 16, Evercore ISI began coverage of the company’s stock with an “Outperform” rating and a price objective of $35. As per the firm, a cyclical recovery in the broader auto-industrial market in 2026 and 2027, Cohu, Inc. (NASDAQ:COHU)’s expansion into AI/compute applications, and a cushion because of recurring revenue are expected to act as key drivers.

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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