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Cohu Inc (NASDAQ:COHU) is one of Renaissance Technologies’ top semiconductor stock picks. The stock has more than doubled since the year began and more than tripled over the past 12 months.

Cohu Inc (NASDAQ:COHU) reported its Q1 2026 results on April 30. The report showed a strong start to the year amid AI-driven demand. Revenue came in at $125.1 million, up from $96.8 million a year ago. Roughly 60% of the revenue came from recurring sources. GAAP net loss narrowed to $12.1 million, or $0.26 per share, compared with a net loss of $30.8 million, or $0.66 per share, in the same quarter last year.

On a non-GAAP basis, Cohu posted net income of $0.6 million, or $0.01 per share. That compares with a non-GAAP net loss of $0.8 million, or $0.02 per share, in the prior year.

The company said growth was driven by accelerating demand for AI and high-performance computing applications. Moreover, the company pointed to growing adoption of its analytics software solution.

CEO Luis Muller said they’re seeing significant growth ahead. Consequently, the management raised the fiscal 2026 outlook. Cohu is anticipating 2026 high-performance computing revenue in the range of $80 million to $100 million. For Q2, the company expects revenue of about $144 million, give or take $7 million.

Cohu also increased the estimate for its AI-driven compute addressable market to around $750 million.

Cohu Inc (NASDAQ:COHU) is a global provider of back-end semiconductor equipment and services. It provides automated semiconductor test equipment, inspection, and metrology solutions. It also offers software analytics to optimize semiconductor manufacturing yield.

While we acknowledge the potential of COHU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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