Our Stock of the Week is ACM Research (ACMR). ACM Research, Inc. is a semiconductor equipment manufacturer founded in 1998 in Silicon Valley. It is a high-growth semiconductor wafer fabrication equipment company. While ACMR is domiciled in the US, its main operations are in Shanghai. This is a play on China’s effort to expand its domestic semiconductor manufacturing industry to shelter itself from US restrictions.
The company specializes in developing and manufacturing wet processing technology and products for the semiconductor industry. Their main focus areas include wet cleaning equipment, electroplating technology, and stress-free polishing
Kerrisdale Capital released a very bullish report on ACM Research (NASDAQ: ACMR) on January 30, 2025. The report highlights several key points:
Market Position: ACM Research is positioned as a leading supplier of wafer cleaning tools in China, playing a crucial role in the country’s push to expand its domestic semiconductor manufacturing
Industry Growth Trajectory: The company’s revenue has grown tenfold over the past six years, driven by China’s response to US export restrictions on semiconductor technology.
Strategic Importance: Kerrisdale argues that ACM Research’s strategic value increases with each new US law that further restricts China’s access to imported WFE equipment1.
The report points out a significant undervaluation of ACM Research on NASDAQ compared to its Shanghai-listed subsidiary. The market cap of ACMR on the US exchange is $1.7 billion, but the subsidiary on the Shanghai exchange has a market cap of around $6 billion.
Future Potential: Kerrisdale predicts that ACM Research will continue to grow rapidly within the Chinese market and eventually become a formidable competitor to global wafer fabrication equipment players
Kerrisdale predicts that ACM Research’s market capitalization could potentially reach $10+ billion,
Technically, the stock has held up well recently despite the weak action in the market, particularly in semiconductors. ACMR is a way to play increased US restrictions on Chinese semiconductors. The more the US restricts China, the more business it drives to ASMR.
As always, we will not chase the stock on Monday morning but will be looking for opportunities to aggressively trade it.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in ACMR. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
