No One's Talking About This AI Chip Stock That Can Easily 5X

"ACM Research is the best of both worlds... sort of It is a U.S.-based company that sells semiconductor production equipment with a focus on single-wafer wet cleaning tools used to improve wafer yield during chip manufacturing. While it is U.S.-based, the main business is actually in China. It holds a dominant position in the country, as the U.S. government has restricted other American competitors like and Screen Holdings from selling advanced cleaning tools to China due to export controls."

"Last year, Kerrisdale Capital pointed out the large discrepancy between the valuation of ACM Research (Shanghai) and the main U.S. arm. The Chinese arm has a market capitalization of CNY 102.01 billion, or $14.65 billion. Remember, this is actually a company that is by ACMR. In U.S. markets, ACM Research has a $3.32 billion market cap. Hence, this Chinese portion alone is worth 3.3 times more!"

ACM Research is a U.S.-based vendor of semiconductor production equipment specializing in single-wafer wet-cleaning tools that improve wafer yields. The company's primary business operates in China where it holds a dominant position after U.S. export controls limited American competitors from selling advanced cleaning tools. ACM Research owns a Chinese entity, ACM Research (Shanghai), which operates without those restrictions inside China. A valuation mismatch exists between the Shanghai entity and the U.S.-listed parent. ACM Research (Shanghai) has a market capitalization of CNY 102.01 billion ($14.65 billion), while the U.S. listing has a $3.32 billion market cap, making the Chinese portion worth roughly 3.3 times more.

Read at 24/7 Wall St.