The COVID-19 pandemic triggered supply chain disruptions in most manufacturing-based industries. The effects have persisted in 2021, but few have been as consequential to global commerce as the shortage in semiconductors. The lack of supply has driven rising prices and falling inventories in small devices like smartphones and big-ticket items like cars -- which are now more reliant on advanced computer chips than ever before.
The backlogged demand has led to major upside in the share prices of most semiconductor producers, but there may still be opportunities to join the action. Cohu (NASDAQ: COHU) is a California-based service company that supplies a portfolio of necessary testing equipment and services to semiconductor manufacturers. At just three times trailing-12-month revenue, this stock could be of great value as companies race to expand their production capacity.
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Why It's Time to Buy This Semiconductor Service Company