By Anthony Di Pizio, The Motley Fool
Publication Date: 2026-09-30 15:29:00
Many investors who want to profit from the artificial intelligence (AI) data center spending boom are still piling into Nvidia and Micron Technology. I don’t blame them, considering Nvidia stock is up 900% over the past five years, while Micron stock has soared by a whopping 1,300%. However, the best returns going forward might come from downstream suppliers of semiconductor equipment and components.
Meet Cohu (NASDAQ: COHU). It supplies testing and handling machines that play a central role in the quality control process by ensuring chips are fit for purpose and defect-free before shipping to customers. The company had a market capitalization of just $3.2 billion as of the market close last Friday, Sept. 25, but here’s why I predict it will soar in value over the next few years.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Cohu is rapidly increasing its production capacity
Cohu supplies equipment to some of the world’s largest semiconductor fabrication companies, including Taiwan Semiconductor Manufacturing, Intel, and Samsung. AI could be one of the company’s most valuable opportunities ever, particularly for its Eclipse and Neon product platforms.
Eclipse handles…
