Stock Tip Tuesday…

🇺🇸 ($ACMR), 🇨🇦 (ACMR-Q)

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The semiconductor BOOM !

If you haven’t heard the semiconductor industry is on a period of significant growth. According to the World Semiconductor Trade Statistics, the industry is expected to experience a remarkable 13.1% increase, pushing its value to an unprecedented $588.36 billion. Driving this resurgence are two key factors: the evolving role of AI technologies, the robust recovery in memory chip sales, and the mass production of electric vehicles.

This leads us to our stock pick of the week…. ACM Research (ACMR). I’ve been watching these boys closely for a minute (I think they might be getting worried…….).

ACMR engages in the development, manufacture, and sale of single-wafer wet cleaning equipment. It supplies process solutions that semiconductor manufacturers can use in numerous manufacturing steps.

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Let me put you on game

OK let me lay it down,

ACMR really excites me, almost as much as a pint after Friday close. Here’s why.

👉 Extremely fast-growing industry; Like I eluded to before. I only see the semiconductor space expanding further through the course of the year and beyond.

👉 Strong Focus on the Chinese Market: ACM Research has a strategic focus on the Chinese market, where it leverages local partnerships and a deep understanding of regional operators' needs. Since China is rapidly expanding its semiconductor capabilities as part of its national strategy, ACM Research’s strong local presence positions it well to take advantage of this growth.

👉 Management Expertise: I’m not going to bore you with all the higher-ups. You can check them out further here. However, David H. Wang Ph.D, is an extremely capable CEO and President. Dr. Wang brings extensive experience in semiconductor equipment, manufacturing processes and markets from his many years of leadership in the industry. As well as more than 100 patents in semiconductor equipment and process technology. My guy knows a thing or two…

👉 Undervalued: Listen, I’ve been monitoring this stock for a few months and I only wish I had known about it sooner. From when I began following (late Feb). ACMR has increased roughly 17% compared to the 7% of the S&P500. This isn’t even allowing for the fact it dropped from a high of $33.91 (around a 70% increase at the time!!). However, if you don’t take my word. Here’s some facts from the Wall Street vest guys.

Here we see here a lovely chart from the big swinging dick finance analysts. ACMR’s 1 year projected price lies from $34 to $42. At its current price, it would be a 50% to 83% return. Not too bad if you ask me.

Here we have Brokerage Recommendation Trends for ACMR. These trends are as bullish as they were 3 months ago, before its first balloon. It is worth noting several studies have shown limited to no success of brokerage because their results often have a strong positive bias of their analysts in rating it. Nevertheless, it’s still worth noting.

Finally, even if you take a far more cautious approach towards ACMR which another model I found does. Its upside is still 15 - 24% and that’s still decent profit.

Thank you
That’s All Folks

Thank you for reading. Like usual. Not financial advice.

I do not currently own ACMR, but I do intend on investing soon. Full disclaimer here

Cheers,