We came across a bullish thesis on Ichor Holdings, Ltd. on Value & Momentum by Denis D.’s Substack. In this article, we will summarize the bulls’ thesis on ICHR. Ichor Holdings, Ltd.’s share was trading at $47.59 as of February 11th. ICHR’s forward P/E was 38.31 according to Yahoo Finance.
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Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States and internationally. ICHR is positioned for a significant recovery in 2026, driven by a strategic shift under its new CEO, who is prioritizing operational discipline, margin expansion, and a focus on the semiconductor business.
By sourcing products internally and limiting non-core activities, ICHR aims to restore profitability while leveraging its proprietary offerings. The company also maintains an active M&A strategy, carefully executed with prudent leverage, which could further enhance long-term growth.
Key customer relationships with Lam Research and Applied Materials are expected to accelerate production and improve gross margins toward historical levels, reinforcing the operational turnaround. From a valuation perspective, ICHR presents an attractive opportunity, with a +54% margin of safety and blended peer multiples and discounted cash flow analysis supporting a potential +37% upside from current stock levels.
With fundamentals poised to strengthen and the share price having bottomed, ICHR offers a compelling entry point for investors seeking both operational improvement and capital appreciation. The combination of disciplined cost management, targeted growth initiatives, and a supportive industry backdrop positions ICHR as a fundamentally undervalued company with clear upside potential in 2026. Overall, the company’s focus on high-margin semiconductor operations, strategic execution, and favorable market dynamics creates a scenario where investors could benefit from both near-term recovery and long-term value creation.
Previously, we covered a bullish thesis on Lam Research Corporation (LRCX) by The Antifragile Investor in May 2025, highlighting its critical role in semiconductor manufacturing, high-margin service flywheel, and strong moats. LRCX’s stock price has appreciated by approximately 10.22% since our coverage. Denis D. shares a similar perspective but emphasizes Ichor Holdings’ (ICHR) 2026 operational turnaround and margin expansion.
Ichor Holdings, Ltd. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held ICHR at the end of the third quarter which was 13 in the previous quarter. While we acknowledge the risk and potential of ICHR 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 ICHR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
