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The time to reopen your portfolio to the recently suppressed Chinese stocks has come, with Biden's administration making clear efforts to resume its alliance with Beijing (after years of political turmoil). At the same time, China's overdue economic recovery commences as its central bank goes against the global inflation grain, lowering its benchmark rates to further promote this economic expansion.
China's growth-focused economy is putting everything they have into building out its semiconductor capabilities with an unbelievable 33.3% spike in chip production in 2021 despite some self-inflicted economic headwinds.
The ripping rally in US public equities has been decelerating over the past couple of months, following an over 100% bull run in the S&P 500 from the pandemic lows in March 2020 (40% above pre-pandemic high), and investors are beginning to look abroad for higher return opportunities.
The opportunity in China's chip segment is undeniable, with analysts projecting the nation will generate a sizable 15% CAGR over the next 5 years in its nascent semiconductor market. I've got an undiscovered Chinese chip player for you with near-term return potential that you don't want to miss out on.
ACM Research (ACMR - Free Report) is a niche under-the-radar small-cap semiconductor player with an ideal concentrated exposure to Asia, enabling it to take advantage of this project shift in international equity returns while riding the endless wave of chip-focused demands. ACMR provides substantial upside potential at the stock's currently overlooked small-cap valuation, with its rapidly accelerating chipmaking capacity and strategic Chinese exposure being the primary buy catalyst.
ACM Research is a global leader in semiconductor equipment. As chip manufacturers in Asia begin ramping up production, ACM's best-in-class chipmaking equipment is poised to take flight following a year and a half of sideways trading action.
Chip demands far surpassing current production capacities entering the digital renaissance of the 4th Industrial Revolution, positioning this business to explode as the Roaring 20s recommence.
China Risk's May Be US
Chinese stocks have been hammered for nearly a year now, as President Xi and his increasingly autocratic communist administration crackdown on the swelling wealth in its booming tech sector. Xi's fear of losing control of "his" nation to a wealthy group of elites is reminiscent of Mao Zedong's totalitarian regime.
This paranoid egotistical positioning has led to a tidal wave of new tech-focused regulations under the guise of elevating "equality" and improved "productivity." These have capitulated the value of this nation's most prominent innovators by a meaningful amount.
Those stocks that had been at the center of these regulatory headwinds have seen their share values significantly deteriorate, presenting some superior long-term prospects as the global economy reemerges from the pandemic with a digitally fueled ambition.
The China Catalyst
ACM Research is a US-based capital equipment firm. Yet, its 3 most prominent customers, representing 76% of 2020 revenue, are based in mainland China, with another nearly 10% of its sales going to a South Korean chip innovator. Over the past 5 years, China and Korea have seen their semiconductor spaces drive compounded annual revenue growth of 20.7% & 19.5% and have become the epicenter of future development for ACMR.
As ACM Research takes advantage of the booming demand, this chip equipment powerhouse is rapidly ramping up its own equipment production capacity and capabilities (more offerings) in the region. The company has several new expansion projects for organic growth that will continue to fuel this stock's growth in 2022.
ACMR remains small-cap equity with a market value of around $1.6 billion. However, with proven profitable growth between 35% - 45% in the past 3 years and a place in Morgan Stanley's shortlist of 2022 chip picks, it's only a matter of time before the market gets wind of this unique investment thesis and lifts ACM Research out of its small-cap shadow and into the large-cap spotlight.
The Technicals
Image Source: TradingView
ACMR is trading over 40% off the highs it touched last February but managed to find a bottom around ACMR is trading over 40% off the highs it touched last February but managed to find a bottom around $69 a share in December and has been range-bound between $70 and $90 a share, a rather extensive roughly 25% breadth since mid-November
ACMR shares have seen robust bullish price action since the end of January, finally breaking back above its 50-day moving average as this under-the-radar international chip stock heads towards its analyst-supported large-cap ambitions.
6 out of 6 analysts are calling ACM Research a buy today now, with price targets between $110 and $150, and the increasingly bullish outlook on ACMR has thrusted it into a Zacks Rank #1 (Strong Buy).
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Bull Of The Day: ACM Research (ACMR)
The time to reopen your portfolio to the recently suppressed Chinese stocks has come, with Biden's administration making clear efforts to resume its alliance with Beijing (after years of political turmoil). At the same time, China's overdue economic recovery commences as its central bank goes against the global inflation grain, lowering its benchmark rates to further promote this economic expansion.
China's growth-focused economy is putting everything they have into building out its semiconductor capabilities with an unbelievable 33.3% spike in chip production in 2021 despite some self-inflicted economic headwinds.
The ripping rally in US public equities has been decelerating over the past couple of months, following an over 100% bull run in the S&P 500 from the pandemic lows in March 2020 (40% above pre-pandemic high), and investors are beginning to look abroad for higher return opportunities.
The opportunity in China's chip segment is undeniable, with analysts projecting the nation will generate a sizable 15% CAGR over the next 5 years in its nascent semiconductor market. I've got an undiscovered Chinese chip player for you with near-term return potential that you don't want to miss out on.
ACM Research (ACMR - Free Report) is a niche under-the-radar small-cap semiconductor player with an ideal concentrated exposure to Asia, enabling it to take advantage of this project shift in international equity returns while riding the endless wave of chip-focused demands. ACMR provides substantial upside potential at the stock's currently overlooked small-cap valuation, with its rapidly accelerating chipmaking capacity and strategic Chinese exposure being the primary buy catalyst.
ACM Research is a global leader in semiconductor equipment. As chip manufacturers in Asia begin ramping up production, ACM's best-in-class chipmaking equipment is poised to take flight following a year and a half of sideways trading action.
Chip demands far surpassing current production capacities entering the digital renaissance of the 4th Industrial Revolution, positioning this business to explode as the Roaring 20s recommence.
China Risk's May Be US
Chinese stocks have been hammered for nearly a year now, as President Xi and his increasingly autocratic communist administration crackdown on the swelling wealth in its booming tech sector. Xi's fear of losing control of "his" nation to a wealthy group of elites is reminiscent of Mao Zedong's totalitarian regime.
This paranoid egotistical positioning has led to a tidal wave of new tech-focused regulations under the guise of elevating "equality" and improved "productivity." These have capitulated the value of this nation's most prominent innovators by a meaningful amount.
Those stocks that had been at the center of these regulatory headwinds have seen their share values significantly deteriorate, presenting some superior long-term prospects as the global economy reemerges from the pandemic with a digitally fueled ambition.
The China Catalyst
ACM Research is a US-based capital equipment firm. Yet, its 3 most prominent customers, representing 76% of 2020 revenue, are based in mainland China, with another nearly 10% of its sales going to a South Korean chip innovator. Over the past 5 years, China and Korea have seen their semiconductor spaces drive compounded annual revenue growth of 20.7% & 19.5% and have become the epicenter of future development for ACMR.
As ACM Research takes advantage of the booming demand, this chip equipment powerhouse is rapidly ramping up its own equipment production capacity and capabilities (more offerings) in the region. The company has several new expansion projects for organic growth that will continue to fuel this stock's growth in 2022.
ACMR remains small-cap equity with a market value of around $1.6 billion. However, with proven profitable growth between 35% - 45% in the past 3 years and a place in Morgan Stanley's shortlist of 2022 chip picks, it's only a matter of time before the market gets wind of this unique investment thesis and lifts ACM Research out of its small-cap shadow and into the large-cap spotlight.
The Technicals
ACMR is trading over 40% off the highs it touched last February but managed to find a bottom around ACMR is trading over 40% off the highs it touched last February but managed to find a bottom around $69 a share in December and has been range-bound between $70 and $90 a share, a rather extensive roughly 25% breadth since mid-November
ACMR shares have seen robust bullish price action since the end of January, finally breaking back above its 50-day moving average as this under-the-radar international chip stock heads towards its analyst-supported large-cap ambitions.
6 out of 6 analysts are calling ACM Research a buy today now, with price targets between $110 and $150, and the increasingly bullish outlook on ACMR has thrusted it into a Zacks Rank #1 (Strong Buy).