ACM Research (ACMR)’s Management Discusses AI Chip Packaging

ACM Research, Inc. (NASDAQ:ACMR) is simply a mid-sized California-based firm. It makes and sells packaging equipment, which is utilized by spot manufacturers aft they person completed the fabrication process and chopped the wafer into chips. ACM Research, Inc. (NASDAQ:ACMR)’s shares person gained 98.6% year-to-date but person mislaid 20.5% since Tuesday’s close.

The dip occurred aft the steadfast reported its third-quarter earnings. The results saw ACM Research, Inc. (NASDAQ:ACMR) study $269.6 cardinal successful gross and $0.36 successful net per share. The steadfast besides reduced the precocious extremity but accrued the debased extremity of its full-year gross guidance from an earlier $850 cardinal to $950 cardinal to $875 cardinal to $925 million. Heading into the results, analysts had expected ACM Research, Inc. (NASDAQ:ACMR) to gain $252 cardinal successful revenue, $0.55 successful net per share, and station a midpoint guidance of $916 million.

ACM Research, Inc. (NASDAQ:ACMR)’s packaging tools people a conception of the spot manufacturing process that has proven to beryllium a bottleneck erstwhile it comes to AI chips. When asked astir the “ramp” into AI opportunities, present is what absorption said during the third-quarter net call:

“Okay. Well, and the sheet has been existent hard, right, successful this year, particularly a large lawsuit successful Taiwan existent promoting the sheet business. We judge sheet is simply a mode to solving the ample country AI chip, right, packaging with HBM together. So each the wafer level is simply a batch of, I telephone the area. So with the ratio of the utilizing the area. So sheet packaging, 1 cardinal is plating technology, right? I should accidental a batch of radical successful the copper plating for sheet is simply a vertical style. And we are astir apt the archetypal 1 to suggest the horizontal and screen plating for the panel, which besides we got the 3D Insight award, Innovation Technology grant from USA. We judge we truly person a bully solution and they tin play their sheet uniformly and determination volition beryllium a capable request of each this either 310×310 oregon 515×510.

While we admit the imaginable of ACMR arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns and person constricted downside risk. If you are looking for an highly inexpensive AI banal that is besides a large beneficiary of Trump tariffs and onshoring, spot our escaped study connected the best short-term AI stock.