1 Under-the-Radar AI Semiconductor Stock to Buy Hand Over Fist, According to Wall Street - The Globe and Mail

This article analyzes Wall Street's investment recommendation for Cohu, a lesser-known semiconductor company playing a key role in the AI revolution. Cohu supplies testing and handling equipment criti... Read original →

Cohu’s surge stems from the unavoidable complexity of testing AI chips at 3nm and HBM-stacked architectures—where its Eclipse and Neon platforms now sit at a critical validation chokepoint before GPU/CPU volume ramp. While Teradyne dominates scale, Cohu’s vertical integration in memory wafer test creates defensible differentiation. Geopolitically, tightening U.S. export controls on semiconductor equipment paradoxically boost Cohu’s indispensability outside mainland China, especially in Korea and Taiwan, China. With HBM4 standardization looming, a new capex wave for test equipment is imminent. Over the next 12–18 months, as Nvidia and AMD deploy next-gen AI accelerators, Cohu’s $750M pipeline should convert rapidly—but its earnings remain dangerously tethered to a few mega-customers. A $1.46 EPS by 2027 justifies its 31.6x forward P/E only if execution stays flawless; any tech pivot or delivery slippage risks sharp multiple compression.