ACMR Stock Is Surging After This Bullish Report

ACM Research (NASDAQ:ACMR) has surged almost 20% today due to very bullish analyst sentiment and revenue revisions. The semiconductor stock is now up almost 40% in the past month, despite earlier bearishness surrounding it. Here’s what you need to know:

Kerrisdale Capital’s Bullish Endorsement

The short-selling firm Kerrisdale Capital called ACM Research the “ultimate 10-bagger” and released a rare long position in ACMR stock. It sees 10x upside.

The report said that ACMR is well-positioned in China and its efforts to build a domestic semiconductor supply chain that can deal with U.S. export restrictions. Moreover, ACMR trades at just 1x estimated 2025 revenue vs. a $10+ billion base case forecast. This may look too much, but considering other semiconductor stocks trade at much higher valuations, this isn’t that ambitious.

Especially when you consider that ACM Research (Shanghai) is 82%-owned by ACMR and has a $5.9 billion market cap in China. This already implies a $4.9 billion valuation for ACMR. The current market cap is $1.31 billion.

ACM Research’s Guidance Revisions Have Also Been Bullish

ACM Research raised its 2024 revenue outlook. It is now $755 million to $770 million. This is up from a previous guidance of $725 million to $745 million. it sees 2025 revenue at $850 million to $950 million. The momentum seems very strong.

EPS growth has also been stellar. ACMR’s EPS grew 39% annually over the past three years, and Q3 2024 revenue is up 21% year-over-year to $204 million. Company insiders hold 12% of shares, so they seem quite confident.

The recent DeepSeek news has also added more fuel to the fire here. Chinese AI models becoming hot could mean more investments in AI from Chinese firms. In turn, this means more business for ACMR.

What Wall Street Thinks About ACM Research Now

Naturally, Wall Street seems very bullish now. The stock could climb a lot more as it is still down from its peak. The consensus analyst price target is at $26.2, and that points to 25.6% upside from here. However, these price targets are likely to be raised more in the coming days and weeks.

There’s a good chance ACMR stock will continue to climb higher with all this optimism. Keep your eyes peeled for its Q4 2024 report.

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