ACM Analysis ACMR expects 2025 revenues between $850 million and $950 million, which signifies roughly 18% development on the mid-point in contrast with 2024’s revised estimated vary of $755-$770 million.
Robust demand for the corporate’s wafer processing options is the most important driver. ACM expects continued investments from Mainland China prospects on rising capability, which is able to preserve demand for its merchandise strong. ACMR additionally expects the influence of the U.S. element export restrictions on its provide chain to be manageable.
ACMR shares have appreciated roughly 15% since Jan. 2 and 17% previously month.
ACMR Inventory’s Efficiency
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Will the sturdy top-line development estimate assist ACMR acquire momentum in 2025? Let’s dig deep to search out out.
ACM Analysis’s Prospects Journey on Robust Portfolio
ACMR’s cleansing enterprise, which includes single wafer cleansing, Tahoe and semi-critical medical tools, is utilized in 90% of all cleansing course of steps. ACM Analysis’s top-to-bottom cleansing portfolio helps tackle a big a part of the market, which is value roughly $6 billion.
Enhancing demand for sulfuric acid peroxide mixing (SPM) providing, which represents roughly 25% of complete front-end cleansing market, helps ACMR acquire market share in cleansing. The corporate stays on monitor to develop into the second solely provider of economic excessive temperature SPM cleansing globally.
ACMR’s Extremely C Tahoe resolution is predicted to learn from the rising demand for environment-friendly AI chip manufacturing for AI. The Extremely C Tahoe’s enhanced capabilities are noteworthy, because it has achieved a mean particle rely of lower than 6 particles at 26 nano measurement, assembly the stringent requirement for superior node manufacturing.
Extremely C Tahoe instrument can be now able to eradicating YX nanoparticles for essentially the most superior logic reminiscence purposes, with an extra smaller particle filtering system. It combines a batch wafer course of and a single wafer cleansing chamber into the identical SPM instrument, delivering enhanced cleansing efficiency, excessive throughput and course of flexibility with as much as 75% discount in chemical consumption.
ACMR is predicted to learn from rising shipments of its ACP furnace to different reminiscence and analog prospects. ACM Analysis anticipated having 17 furnace prospects by the tip of 2024, up from 9 on the finish of 2023. The corporate expects contribution to revenues from furnace to speed up in 2025.
Increasing Worldwide Footprint Aids ACMR’s High Line
ACM Analysis advantages from an increasing worldwide footprint, with a concentrate on profitable new prospects in america, Korea, Taiwan, Europe and different Asia markets. ACMR’s long-term goal is to generate half of its revenues from outdoors of China. ACMR is increasing gross sales and providers groups in america, Korea, Europe and South East Asia.
Over the long run, China Service Addressable Market (SAM) is value $5 billion, with cleansing, ECP, furnace, PECVD, monitor and superior packaging SAM being $1.6 billion, $0.4 billion, $0.7 billion, $1.3 billion, $0.8 billion and $0.3 billion, respectively.
Non-China SAM is estimated to be $11 billion, with cleansing, ECP, furnace, PECVD, monitor and superior packaging SAM being $3.6 billion, $0.8 billion, $1.5 billion, $3 billion, $1.8 billion and $0.9 billion, respectively.
The corporate expects to generate $3 billion in revenues over the long run.
ACMR expanded manufacturing capability with the acquisition of a 39,500-square-foot facility, together with a 5,200-square-foot clear room in Oregon.
ACMR’s Earnings Estimate Tendencies Are Regular
The Zacks Consensus Estimate for 2025 earnings is pegged at $1.80 per share, unchanged over the previous 30 days.
ACMR’s earnings beat the Zacks Consensus Estimate in all of the trailing 4 quarters, the common shock being 151.52%.
ACM Analysis, Inc. Value and Consensus
ACM Research, Inc. price-consensus-chart | ACM Analysis, Inc. Quote
Discover the most recent EPS estimates and surprises on Zacks Earnings Calendar.
ACMR Inventory – Purchase or Maintain?
ACM Analysis shares are buying and selling above the 50-day and 200-day shifting averages, indicating a bullish pattern.
ACMR Trades Above 50-Day and 200-Day SMA
Picture Supply: Zacks Funding Analysis
ACM Analysis inventory is buying and selling at a reduction, as urged by the Value Score of A.
By way of the ahead 12-month Value/Gross sales, ACMR is buying and selling at 1.13X, decrease than its median of 1.41X and the sector’s 6.88X.
Value/Gross sales (F12M)
Picture Supply: Zacks Funding Analysis
Nonetheless, the slowdown in China’s superior packaging market is a priority. U.S. export restrictions are a headwind for ACMR.
ACM Analysis at the moment has a Zacks Rank #3 (Maintain), which suggests that buyers ought to watch for a good time to build up the inventory. You may see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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With sturdy earnings development and an increasing buyer base, it is positioned to feed the rampant demand for Synthetic Intelligence, Machine Studying, and Web of Issues. World semiconductor manufacturing is projected to blow up from $452 billion in 2021 to $803 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
