B. Riley Raises Cohu (COHU) PT to $35 Amid Surging AI-Driven Demand

Cohu Inc. (NASDAQ:COHU) is one of the best small cap tech stocks to invest in now. On January 26, B. Riley analyst Craig Ellis raised the price target for Cohu to $35 from $30 with a Buy rating, citing robust AI-driven demand for HBM, CoWoS, and GPUs that currently exceeds supply.

Despite near-term cyclical pressures, the firm anticipates a modest upside for Q4 2025 and steady guidance for early 2026, supported by recovering demand in Taiwan and the automotive and industrial sectors. These long-term AI growth drivers are expected to fuel significant expansion in both sales and earnings per share.

Furthermore, earlier on January 14, Stifel also increased its price target for Cohu Inc. (NASDAQ:COHU) to $32 from $30 while maintaining a Buy rating. This decision was made as part of its 2026 semiconductor equipment outlook. The firm’s decision follows bullish field checks that led analysts to raise their calendar 2026 industry wafer fabrication equipment spending forecast to 10% to 15% growth, up from the previous estimate of 7% to 8%.

B. Riley Raises Cohu (COHU) PT to $35 Amid Surging AI-Driven Demand

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Cohu Inc. (NASDAQ:COHU), through its subsidiaries, provides semiconductor test equipment and services internationally. It supplies test & inspection metrology automation systems, micro-electromechanical system test modules, test contactors, thermal subsystems, and data analytics software for semiconductor manufacturers and test subcontractors.

While we acknowledge the potential of COHU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COHU and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.