10 Small Publicly Traded Semiconductor Companies To Buy

4. Cohu, Inc. (NASDAQ:COHU)

Number of Hedge Fund Investors In Q1 2024: 20

Cohu, Inc. (NASDAQ:COHU) is a semiconductor equipment firm that allows chip manufacturers to test their final products for quality control. Since it is an undiversified firm that focuses primarily on testing equipment, the firm’s fortunes rest on the broader performance of the semiconductor industry which incorporates the automotive, smartphone, and other sectors. Cohu, Inc. (NASDAQ:COHU) might find it insufficient to benefit from an uptick of AI products alone, and as the global economy continues to take the strain from high interest rates, the firm has struggled on the financial front. Its latest earnings report saw Cohu, Inc. (NASDAQ:COHU) announce a mid point revenue guidance of $105 million, which fell below consensus analyst estimates of $108 million. The guidance miss means that the weakness in the equipment and materials sector that we’ve identified in other stocks part of our list of the top small semiconductor stocks also extends to Cohu, Inc. (NASDAQ:COHU).

As to when Cohu, Inc. (NASDAQ:COHU)’s management expects its fortunes to reverse, here’s what it had to say during the latest earnings call:

But what we’ve seen in particularly IoT devices, so talking about RF in the mobile space, we’ve seen a little bit of an improvement in orders in the fourth quarter revenue in the first quarter. As I mentioned before on the prior call, the prior question, sorry. The mobile segment is the only segment of our market that we saw an increased revenue quarter-over-quarter. Now that’s more particularly focus on the Android segment and some – as we understand customer. Our customers opportunity for sales in China and Korea not yet a broad-based recovery, so I think mobile will be incrementally better going forward. But realistically, I think a full-blown recovery is more of a late this year to 2025 story.