ACM Research, Inc. (ACMR): A Bull Case Theory

We came across a bullish thesis on ACM Research, Inc. on Hazelnuts Research’s Substack. In this article, we will summarize the bulls’ thesis on ACMR. ACM Research, Inc.'s share was trading at $55.79 as of January 28th. ACMR’s trailing and forward P/E were 32.44 and 28.57 respectively according to Yahoo Finance.

ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells capital equipment worldwide. ACMR is emerging as a rare high-growth semiconductor equipment company, often overlooked because it operates in the niche of wafer cleaning rather than AI hype.

Its proprietary technologies, SAPS (Space Alternated Phase Shift) and TEBO (Timely Energized Bubble Oscillation), allow it to clean the intricate 3D structures of advanced memory chips without damage, solving problems that traditional tools cannot. This technological edge has made ACMR indispensable to leading memory makers like SK Hynix and YMTC, especially as demand for AI memory and 3D NAND surges globally.

Beyond its technology, ACMR benefits from a unique geopolitical moat: U.S. sanctions on competitors like Lam Research and Screen Holdings effectively limit foreign competition in China, giving ACMR a quasi-monopoly in its largest market. While some view exposure to China as risky, ACMR’s domestic substitution strategy ensures revenue is growing at 30–40% CAGR, and expansion into deposition and advanced packaging positions it as a platform company rather than a niche supplier.

Financially, the company is robust, with gross margins of 40–50%, a net cash position, and a clear path to $1 billion in revenue, ultimately targeting $3 billion long-term. Its U.S. listing trades at a discount relative to its 75% stake in the Shanghai-listed subsidiary, presenting a valuation arbitrage opportunity; if multiples converge with peers, the stock could see upside of 2–4x.

Risks include potential U.S. restrictions on personnel and cyclical Chinese capex. Even accounting for these, ACMR represents a compelling asymmetric bet: a profitable, cash-rich company with monopoly-like positioning, high operating leverage, and a credible path to multi-billion-dollar scale, offering significant upside for patient investors.

Previously, we covered a bullish thesis on ACM Research, Inc. (ACMR) by thexcapitalist in April 2025, highlighting China-focused growth, 40% revenue expansion, and discounted valuation. ACMR’s stock price has appreciated by approximately 203.20% since our coverage, as the thesis played out . Hazelnuts Research shares a similar view but emphasizes proprietary SAPS and TEBO technologies, the quasi-monopoly in China, and valuation upside from its Shanghai-listed subsidiary.

ACM Research, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held ACMR at the end of the third quarter which was 33 in the previous quarter. While we acknowledge the risk and potential of ACMR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ACMR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.