Cohu Inc. (NASDAQ:COHU) is in the middle 7 small-cap semiconductor stocks to buy, according to analysts.
On February 13, Needham at Cohu, Inc. (NASDAQ:COHU) raised its price target to $33 from $30 and reiterated a buy rating. This price target increase comes even after reported Q4 2025 revenue that was in line with estimates, but GAAP non-gross margin was meaningfully below estimates. This occurred due to a one-time inventory charge, which represented a 350 basis point decrease of a total of 420 basis points.
For Q1 2026, Cohu, Inc. (NASDAQ: COHU ) projects revenue will be flat QoQ, with non-GAAP gross margin expected to return to approximately 45%. The company cited data center design success in the analog/mixed-signal client, expected to generate additional revenue in 2026, in addition to current high-bandwidth memory and AI computing applications. With that said, Needham advised a “deep buy” on the stock and raised his forecasts.
On the same day, TD Cowen said a quarterly miss could be ignored, but a near-flat QoQ outlook would likely be somewhat disappointing. Company analyst, Krish Sankar, at Cohu, Inc. (NASDAQ: COHU ) raised its price target to $35 from $30 and maintained a buy rating, citing healthy trends in underlying 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 recognize COHU’s potential as an investment, we believe some AI stocks offer more potential and lower risk. If you’re looking for the most undervalued AI stocks that stand to benefit significantly from Trump-era tariffs and the offshore trend, check out our free report Best short-term AI stocks.
Read next: The 40 most popular stocks among hedge funds heading into 2026 and 10 Unstoppable Stocks That Can Double Your Money.
Disclosure: None. Follow the inside port on Google News.
