ACM Research Predicted To Achieve Double-Digit Growth in 2025 Due to Expanding Chip Demand: Analyst

Benchmark analyst Mark Miller maintained ACM Research Inc ACMR with a Buy and raised the price target from $35 to $38. The stock price climbed after the re-rating.

Miller noted several factors contributing to double-digit growth in 2025 for ACM Research.

The factors included strong DRAM demand driven by HBM opportunities, a recovery in NAND demand, $100 billion in combined funding by the U.S., Europe, and Japan for internal chip production, geographic expansion of demand, share gains, and new products.  

As per the analyst, R&D spending for 2024 will likely represent 16% of sales, while sales and marketing are estimated to represent 7%-8% of sales. 

The analyst said that general and administrative expenses will likely represent 5%-8% of sales.  

For 2025, Miller projects an adjusted EPS of $2.11 on sales of $860 million. This represents 54% top-line and 29% percent bottom-line growth from 2023. 

In February, ACM Research reported fourth-quarter fiscal 2023 revenues of $170.3 million, up by 56.9% Y/Y, beating the analyst consensus of $149.3 million. 

ACMR reported an adjusted EPS of $0.43, beating the street view of $0.17.

Investors can gain exposure to the stock via Matthews China Discovery Active ETF MCHS and ProShares Nanotechnology ETF TINY.

Price Action: ACMR shares are trading higher by 5.45% to $30.81 on the last check Wednesday.

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