"ACM Research sells specialized equipment for semiconductor manufacturers to process silicon wafers during chip production. The company is based in the U.S, but it derives most of its revenue from China, both directly and indirectly."
"While ACM Research sells to China, it does so mostly indirectly. ACM Research owns 73.7% of ACH Research (Shanghai), which also trades on the Chinese public market."
"ACM Research (Shanghai) trades at CNY 72.66 billion, or $10.64 billion USD. So, ACMR's stake here is worth some $7.9 billion."
ACM Research specializes in semiconductor manufacturing equipment, primarily serving the Chinese market. The company has seen significant stock performance, with ACMR up 161% compared to NVDA's 75%. ACMR's unique structure, owning a majority stake in ACH Research (Shanghai), provides a commercial advantage and contributes to its valuation disconnect. This disconnect suggests a potential upside of over 300%. Despite concerns regarding exposure to China, ACMR's risk is lower than that of many competitors, making it an attractive investment opportunity.
Read at 24/7 Wall St.
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