Needham Initiates CEVA (CEVA) With A Buy Rating

CEVA, Inc. (NASDAQ:CEVA) is one of the Best Small-Cap Semiconductor Stocks to Buy Right Now. Recently, on June 15, Needham initiated CEVA, Inc. (NASDAQ:CEVA) with a Buy rating and a $55 price target.

​The stock has gained roughly 4% over the past month, mainly due to the strong momentum from Q1 2026 earnings. The company witnessed licensing growth during the quarter and also raised the full-year guidance to the top end of its 8% to 12% growth range.

Needham sees CEVA as an attractive play on the emerging Physical AI sector. The firm believes that Physical AI requires a much broader set of semiconductors beyond just compute and memory. The company is well positioned in this sector and holds a 68% global market share in wireless connectivity, alongside strong positions in sensing and DSP/NPU technology.

​Needham acknowledges that widespread Physical AI adoption is likely still more than two years away, but remains bullish on the stock, expecting significant upside in the near-term.

CEVA, Inc. (NASDAQ:CEVA) delivers silicon and software IP that facilitates smart edge devices to connect, sense, and process data. Established in 1999, the company is based in Rockville, Maryland.

While we acknowledge the risk and potential of CEVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CEVA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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