ACM Research ACMR shares are cheap, as suggested by a Value Score of B.

In terms of the forward 12-month Price/Sales ratio, ACM Research is trading at 1.4, lower than the sector’s 5.49. 

ACMR is cheap compared to its peers, including Applied Materials AMAT, Lam Research LRCX and Tokyo Electron TOELY, which are currently trading at forward 12-month Price/Sales of 4X, 5.19X and 3.96X, respectively.

Price/Sales (F12M)

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ACMR Outperforms Industry, Peers

ACMR shares have rallied 54.6% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s decline of 11.7% and the Zacks Semiconductor Equipment - Material Services industry’s return of 32.5%

ACMR shares have outperformed its peers, including Applied Materials, Lam Research and Tokyo Electron. These companies remain key competitors in the semiconductor equipment industry, particularly in wafer cleaning, deposition, and other critical fabrication processes.

While LRCX shares have risen 0.7%, AMAT and TOELY shares have plunged 10.7% and 9.3%, respectively, in the year-to-date period.

The outperformance can be attributed to ACMR’s expanding market presence, particularly in China and globally, driven by a robust portfolio and increased customer base.

YTD Performance

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Hence, investors should ask this question: Can ACMR maintain its growth momentum with its expanding product portfolio and customer base?

ACMR Expands Product Portfolio With New Semiconductor Tools

ACMR has diversified its product offerings across cleaning, plating, and advanced packaging, with new products, such as Tahoe, Sulfuric Peroxide Mixture (SPM) and track and furnace tools contributing to its growth. These products target a substantial global semiconductor market, with ACMR estimating its Serviceable Available Market to be approximately $18 billion.

Building on this momentum, the company announced in March 2025 that a major logic device manufacturer in mainland China has qualified its Single-Wafer High-Temperature SPM tool. 

The tool, designed for advanced semiconductor and packaging applications, features ACM’s proprietary nozzle design for superior particle control and reduced maintenance, supporting wet etching and wafer cleaning for technology nodes at 28nm and below.

Further expanding its portfolio in December 2024, ACMR announced the qualification of its Ultra Fn A Plasma-Enhanced Atomic Layer Deposition Furnace tool for mass production at a mainland China semiconductor customer, alongside the successful process qualification of its Ultra Fn A Thermal Atomic Layer Deposition (Thermal ALD) Furnace tool with another leading mainland China customer.

Major Customer Base Drives ACM Research’s Growth

ACMR’s robust relationships with major customers, including Huahong Group, Semiconductor Manufacturing International Corporation (“SMIC”), YMTC, and PXW, have been noteworthy. These customers represent significant revenue contributions, with top customers accounting for more than 10% of ACMR’s sales in 2024.

The Huahong Group emerged as ACM Research’s largest customer in 2024, accounting for 15% of the company’s total sales, thereby solidifying its role as a key revenue driver. Close behind, SMIC contributed 14%, highlighting ACM’s strong foothold in China’s semiconductor sector.

Yangtze Memory Technologies Co. and PXW each contributed 12% to ACM Research’s revenues in 2024, underscoring the company’s dependence on major industry players. This revenue distribution highlights ACM’s deep integration into China’s semiconductor supply chain driven by continued demand for its wet-processing and advanced packaging equipment.

ACMR is also increasing its international presence by interacting with customers beyond China, including the United States, Europe, Korea, Taiwan, and Singapore. This is made possible by its robust technology portfolio, featuring sophisticated solutions for wafer cleaning, electroplating, and advanced packaging.

ACMR Provides Optimistic 2025 Outlook

ACM Research remains optimistic about its 2025 outlook, with a focus on growth opportunities and market expansion.

For 2025, the company expects total revenues of $850-$950 million. ACMR increased its gross margin to 42-48% from the previously expected range of 40-45%, reflecting improved operational efficiency.

ACMR’s Earnings Estimates Show Upward Movement

The Zacks Consensus Estimate for 2025 revenues is pegged at $928.32 million, indicating a year-over-year increase of 18.69%.

The consensus mark for 2025 earnings is pegged at $2.15 per share, indicating an increase of 19.4% year over year. The figure remained unchanged over the past 30 days.

ACMR’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 97.86%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

ACMR is a Must Buy Right Now

ACMR’s diversified product portfolio, expanding customer base and positive 2025 outlook are expected to drive financial performance.

ACMR currently has a Zacks Rank #1 (Strong Buy) and a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Lam Research Corporation (LRCX) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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