InvestorPlace Analyst Eric Fry has identified JCU Corp (TYO:4975) and Cohu Inc. (COHU) as key players in the AI industry’s supply chain, focusing on their roles as “Golden Rivets”—essential components for chip manufacturing. JCU, a Japanese firm specializing in copper sulfate plating, holds a 70% market share and is expected to earn 40% operating margins in 2023, compared to a 27% margin in 2019. Cohu, based in San Diego, has seen a resurgence in demand, with a reported 47% increase in system orders quarter-on-quarter, driven by growth in AI data center needs.
Micron Technology Inc. (MU) has risen 262% in stock value over the past six months, while Fluence Energy Inc. (FLNC) is up 111%, highlighting the volatile market dynamics influenced by AI demand. Analysts project Cohu’s profits could double by 2027 amidst rising demand from major cloud service providers, while JCU’s revenue growth estimates seem conservative, particularly as semiconductor shortages continue to affect the industry.
