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Is ACM Research A High Growth Semiconductor Stock That’s Profitable?

When it comes to media and investor attention, semiconductor stocks are among some of the hottest right now. This is because of artificial intelligence, and the expected shift to accelerated computing for businesses and consumers. With the PHLX Semiconductor (SOX) index up by over 50% in the past year, some semiconductor companies have seen even better performance. In this article, we’ll take a closer look at ACM Research, Inc. (NASDAQ:ACMR), which is one the high growth semiconductor stocks that are profitable in 2024.

ACM Research, Inc. (NASDAQ:ACMR)

ACM Research, Inc. (NASDAQ:ACMR) is a mid-sized semiconductor manufacturing equipment designer and seller. It is a specialized company since it focuses on just one aspect of the broader chip manufacturing process. This aspect sees ACM Research, Inc. (NASDAQ:ACMR) sell machines that allow chip makers to use chemicals to clean silicon wafers during semiconductor fabrication.

Analyzing ACM Research, Inc. (NASDAQ:ACMR)’s Recent Performance

ACM Research, Inc. (NASDAQ:ACMR)’s latest financial results were quite impressive in terms of annual growth. For its first quarter of 2024 earnings, the firm reported $152 million in revenue and $17.4 million in net income. The net income translated into basic earnings per share of $0.28. Additionally, ACM Research, Inc. (NASDAQ:ACMR)’s first-quarter non-GAAP net income per diluted share stood at $0.52, which not only beat analyst estimates,  but also added to a string of beats from the previous quarters.

ACM Research, Inc. (NASDAQ:ACMR) Has Demonstrated Revenue Growth & Profitability

ACM Research, Inc. (NASDAQ:ACMR)’s latest quarterly revenue growth stood at ~105%, which nearly doubled over the previous quarter’s growth of 43.44%. Additionally, on a revenue growth basis only, ACM Research, Inc. (NASDAQ:ACMR)’s figures for the past three and five year average annualized revenue growth rates as of December 2023 are 52.71% and 49.52%, respectively. In dollar terms, annual revenue between 2020 and 2023 sat at $156 million, $259 million, $388 million, and $557 million, respectively. This means that on an absolute basis, revenue more than doubled in 2023 in comparison to 2020, as is also the case with several other high growth semiconductor stocks.  Taking a deeper look at its income statement, ACM Research, Inc. (NASDAQ:ACMR) has also demonstrated impressive operating and net income growth.

What Are Analysts Saying About ACM Research, Inc. (NASDAQ:ACMR)?

Since ACM Research, Inc. (NASDAQ:ACMR) is a small-cap stock and has a market capitalization under $2 billion, not many analysts are covering it. One notable analyst note in 2024 came from Goldman Sachs. It upgraded ACM Research, Inc. (NASDAQ:ACMR) to Buy from Neutral and raised the price target to $39 from $22. The average of seven one-year share price targets for ACM Research, Inc. (NASDAQ:ACMR) is $37.79, which represents a hefty upside of 63%.

Does ACM Research, Inc. (NASDAQ:ACMR) Sit At The Top When It Comes To Profitable Revenue Growth Stocks?

The potential stock price upside and multiple line-item growth rates would make ACM Research, Inc. (NASDAQ:ACMR) appear quite a lucrative investment. However, the firm’s limited business operations could mean that it leaves space open for rivals. Semiconductor fabrication is seeing significant interest in the US, particularly due to the CHIPS And Science Act earmarking billions in US government funding to firms seeking to secure America’s semiconductor supply chain.

ACM Research, Inc. (NASDAQ:ACMR) isn’t present on our list of the top analyst A.I. stock picks, even though it is a part of the semiconductor industry. Similarly, it isn’t a hot Cathie Wood stock either.

At Insider Monkey we are closely following the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

So, you can read 12 Best Artificial Intelligence Stocks to Buy Now According to Wall Street Analysts here and Cathie Wood’s Latest Stock Portfolio: Top 10 Stock Picks here.

Disclosure: None. Is ACM Research, Inc. (NASDAQ:ACMR) A High Growth Semiconductor Stock That’s Profitable? was originally published on Insidermonkey.com.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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