We recently published a list of 10 Undervalued Quantum Computing Stocks to Buy Now. In this article, we are going to take a look at where ACM Research, Inc. (NASDAQ:ACMR) stands against other undervalued quantum computing stocks to buy now.
Quantum computing is turning into an essential component of the upcoming technological revolution. It is resolving problems all around in sectors spanning security, finance, medicine, and AI. In comparison to regular computers, quantum systems use qubits that work in multiple states at once, which massively boosts processing power. This does show advancements in the field of science, and as such, it is encouraging new markets. PwC reports that quantum tech is making waves in research, operations, and infrastructure, with specific attention on optimization, system simulation, and modeling risks.
According to ResearchAndMarkets, while the quantum industry reached $1.9 billion in 2024, it is expected to hit $7.5 billion by 2030, with a CAGR of 28.7%. Forbes stated that this strong growth comes from institutional support, public-private teamwork, and hardware breakthroughs. Moreover, venture capital invested $1.5 billion into 50 quantum startups last year, almost twice the amount in 2023. The Forbes Technology Council adds that this demonstrates that investors are putting more trust in the quantum sector. Thus, it has the potential to reshape not just the IT sector but global markets too, from portfolio management to trading algorithms, by cutting computation time and risks.
In response to this technology, the stock market has been skeptical, as it is uncertain when quantum computing will go mainstream. However, recent advances in error reduction, logical qubit formation, and hybrid quantum-classical models have boosted optimism among investors. These hybrid approaches are already helping with logistics, artificial intelligence, and materials research. Forbes claims that this shift is a complete redefinition of tech investing, with quantum moving from an accessory to a necessity in the tech sector.
In contrast, in the financial sector, the industry is getting attention despite being relatively new and in development. IDTechEx predicts it can reach $10 billion worth of value in two decades, driven by the active advancements of quantum startups. With over 50 of these startups turning profitable in just four years, companies are now rapidly adopting the technology, with a rise in demand for quantum programs. Meanwhile, an IDC report in April showed PC shipments grew 4.9% in Q1 2025, unaffected by the rising tariffs. Furthermore, even governments all around the globe are investing in this sector, led by America, Germany, China, and Britain. The UN even declared 2025 the International Year of Quantum Science and Technology.
Looking ahead, the technological progress keeps investors hooked with new materials like niobium. When paired with surface encapsulation methods, it has stretched coherence times to 600 microseconds, making qubits perform better. In addition, better chip designs and error correction are helping quantum systems move from labs to real applications. These improvements should cut costs and boost reliability, bringing quantum’s theoretical potential into practical use.
Our Methodology
To curate our list of the 10 Undervalued Quantum Computing Stocks to Buy Now, we relied on the Finviz screener to find the biggest Quantum Computing companies. We narrowed down these companies by choosing ones that have their forward price-to-earnings multiple less than 15, as of the time of writing this article. Next, we ranked the shortlisted stocks based on the hedge fund sentiment surrounding each stock, as per Insider Monkey’s Q4 2024 database. The 10 Undervalued Quantum Computing Stocks to Buy Now are listed in ascending order based on the number of hedge fund holders having stakes in the respective stocks.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Close-up of a worker wearing protective gear inspecting a silicon wafer in a laboratory.
ACM Research, Inc. (NASDAQ:ACMR)
Number of Hedge Fund Holders: 23
Forward Price to Earnings (P/E) ratio: 9.33
ACM Research, Inc. (NASDAQ:ACMR) makes and sells equipment for semiconductor manufacturing and advanced packaging worldwide. The company focuses especially on wet cleaning tools, advanced packaging gear, dry processing systems, and semi-critical cleaning tech. Its products include names like SAPS, TEBO, and ULTRA C, which handle both front-end and back-end chip fabrication. ACM’s Research segment is growing its presence in the U.S. and China, while developing next-gen wafer-level packaging and dry processing platforms. To grow in the quantum computing sector, it has partnered with companies in quantum computing and keeps delivering tools for cutting-edge chip tech, also making it to our list of cheap stocks to buy now.
In Q4 ended December 31, 2024, ACM Research, Inc. (NASDAQ:ACMR) made $223.5 million in revenue, an increase of 31.2% from last year. While its full-year 2024 revenue jumped 40.2% to $782.1 million, its quarterly EPS hit $0.56, beating the expected $0.31. Shipments for the quarter shot up 88% year-over-year to $264 million, bringing its full-year shipments to $973 million. The company’s Q4 gross margin was 49.8%, with a full-year figure of 50.4%, and finished 2024 with $259.1 million in net cash, a rise of $198.5 million in Q3.
The growth of ACM Research, Inc. (NASDAQ:ACMR) came mostly from strong sales in single-wafer and semi-critical cleaning tools, bringing in $155.2 million in Q4 and $579 million for the whole year. On the other hand, sales from the company’s ECP, furnace, and other technologies grew nearly 61% in Q4.
Even with U.S. export restrictions, management thinks the impact won’t be too bad because of the company’s local supply chains. ACM Research, Inc.’s (NASDAQ:ACMR) new facilities in Lingang and Oregon will help it grow its capacity, and it expects 2025 revenue between $850-950 million, with gross margin guidance of 42-48%.
Overall, ACMR ranks 6th on our list of undervalued quantum computing stocks to buy now. While we acknowledge the potential of ACMR as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ACMR but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.