We came across a bullish thesis on Entegris, Inc. on FelixQE’s Substack. In this article, we will summarize the bulls’ thesis on ENTG. Entegris, Inc.’s share was trading at $137.34 as of February 25th. ENTG’s trailing and forward P/E were 49.65 and 27.17 respectively according to Yahoo Finance.
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Entegris (ENTG) is a pure-play semiconductor materials company strategically positioned to benefit from the industry’s recovery. The company provides critical materials—including precursors, slurries, filtration solutions, and packaging components—that are essential for advanced semiconductor fabrication, giving it a foundational role in every major chip fab. Recent guidance revisions reflect management’s confidence in a sustained recovery, highlighting both near-term resilience and long-term growth potential.
While the stock trades at a seemingly high multiple of 45x earnings, this premium is justified when viewed on a normalized basis, assuming semiconductor volumes return to cyclical norms, effectively making the current valuation an attractive option on growth. ENTG is also proactively mitigating geopolitical risk by expanding local-for-local manufacturing in Taiwan and Colorado, reducing exposure to China and ensuring supply chain stability.
As volumes normalize, gross margins are expected to expand toward 47%, further enhancing profitability and free cash flow generation. With its essential product portfolio, strategic operational moves, and a market poised for recovery, Entegris presents a compelling growth opportunity.
Investors are effectively positioned to capture both cyclical upside and structural value creation, making the current stock an attractive entry point despite short-term headline multiples. The combination of industry recovery, margin expansion, and strategic de-risking supports a positive risk/reward profile for both equity and credit holders, offering potential upside as the semiconductor cycle strengthens and normalized earnings fully materialize.
Previously, we covered a bullish thesis on ACM Research, Inc. (ACMR) by thexcapitalist in April 2025, highlighting its 40% revenue growth, 13% return on equity, and China-focused semiconductor positioning. ACMR’s stock price has appreciated by approximately 272.11% since our coverage. FelixQE shares a different view but emphasizes Entegris, Inc. (ENTG), a U.S.-focused semiconductor materials company benefiting from industry recovery and margin expansion.
Entegris, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held ENTG at the end of the third quarter which was 54 in the previous quarter. While we acknowledge the risk and potential of ENTG 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 ENTG and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
