ACM Research Stock Surges On Bullish Call From Kerrisdale Capital: 'Ultimate 10-Bagger'

ACM Research Inc ACMR shares are trading higher Thursday after short-selling investment firm Kerrisdale Capital announced a long position in the stock.

What Happened: In a rare bullish call, Kerrisdale on Thursday issued a detailed report on the upside potential in shares of ACM Research, a high-growth semiconductor wafer fabrication equipment (WFE) company that Kerrisdale believes is poised to be a direct beneficiary of China’s semiconductor manufacturing push.

“As the United States increasingly attempts to restrict China's ability to manufacture advanced semiconductors, China is pulling every lever possible to funnel business to its small collection of WFE national champions. ACMR is one of those national champions,” Kerrisdale said.

“We predict that ACMR will continue to rapidly grow within the Chinese market, supplying an expanding array of tools to China's fast-growing base of fabs.”

A company spokesperson declined to comment.

Kerrisdale believes as ACM Research accelerates its growth trajectory in China, the company will become a “powerful competitor” to global WFE companies and begin taking share outside of China.

“Billions of dollars in revenue and a $10+ billion market capitalization is our base case forecast, and the company's depressed valuation today offers asymmetric upside,” the short seller said.

ACM Research had a market cap of approximately $1.1 billion as of Wednesday’s close. The stock is trading at 1x the firm’s estimated revenue for 2025. Kerrisdale indicated that the stock presents a 10x upside, calling it the “ultimate 10-bagger.”

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Kerrisdale expects U.S. President Donald Trump to double down on the former administration’s export restrictions aimed at cutting off chip technology to China. China’s response has been to accelerate its push to build its own WFE sector, which Kerrisdale expects to directly benefit ACM Research.

“Each new U.S. law that tightens the noose around China's access to imported WFE equipment only increases the strategic importance of ACMR and adds fuel to its explosive growth, as the company has become a critical pawn in China's efforts to win the high stakes battle for global semiconductor leadership,” Kerrisdale said.

Kerrisdale pointed out that ACM Research generates a majority of its revenue through its subsidiary ACM Research (Shanghai) Inc, which it owns 82% of. The subsidiary is publicly listed in China and trades with a $5.9 billion market cap. Such implies a valuation of approximately $4.9 billion for ACM Research, Kerrisdale said.

“ACMR helps customers make chips for logic and memory, but its NASDAQ valuation defies logic, and as investors better diligence this small-cap dislocation, its extreme valuation discount will become a distant memory,” Kerrisdale said.

ACMR Price Action: ACM Research shares were up 14.9% at $20.08 at the time of publication Thursday, according to Benzinga Pro.

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