ACM Research (ACMR): Evaluating Valuation as Market Awaits Revenue Growth and Lower EPS in Upcoming Results

ACM Research (ACMR) is in the spotlight as the market anticipates its upcoming earnings release. Investors are weighing forecasts for a sharp rise in revenue, along with a marked drop in earnings per share from last year.

See our latest analysis for ACM Research.

After an impressive rally that saw ACM Research's share price surge more than 47% in the past month and 164% year-to-date, momentum has cooled slightly with a recent pullback. Despite this dip, the company’s one-year total shareholder return remains a remarkable 98%, which highlights sustained optimism from investors based on its resilient revenue growth and history of exceeding earnings targets.

If this kind of fast-moving growth story interests you, now is the perfect time to expand your search and discover fast growing stocks with high insider ownership

With shares rallying on robust revenue growth while earnings forecasts point downward, the question remains: is ACM Research undervalued at current levels, or is the market already accounting for its future potential?

Most Popular Narrative: 40% Overvalued

At a fair value of $35.36, the most widely followed narrative positions ACM Research’s last close price of $41.07 above analyst expectations. This sets up one central question: do growth catalysts justify such a bullish valuation premium?

Advanced digitalization and AI adoption are driving a surge in demand for next-generation semiconductor manufacturing, with ACM's differentiated cleaning and plating solutions (such as its proprietary N2 bubbling and SPM tools) positioned to capture increased orders as foundries invest in more complex 3D NAND, DRAM, and logic nodes, supporting long-term revenue growth.

Read the complete narrative.

What if ACM’s path to a higher valuation is hiding in these very growth drivers? The real story lurks beneath headline numbers. It is a growth formula founded on bold, industry-defining assumptions about future demand, competitive technology, and aggressive scaling. Is ACM’s projected performance deserving of this large valuation leap? Dive in to see what could propel or shake up expectations next.

Result: Fair Value of $35.36 (OVERVALUEED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing reliance on China's semiconductor market and exposure to shifting export controls could quickly disrupt ACM's growth story and earnings momentum.

Find out about the key risks to this ACM Research narrative.

Another View: Multiples Tell a Different Story

Looking through the lens of earnings-based valuation, ACM Research is trading at 23.5 times earnings, which is noticeably lower than both industry peers at 38x and the broader US Semiconductor sector at 38.3x. Notably, the fair ratio stands at 27.3x, suggesting some upside if market sentiment shifts closer to sector norms. But does this gap indicate genuine value, or is there an overlooked risk keeping the discount in place?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own ACM Research Narrative

If you see the data differently or want to test your own assumptions, it takes under three minutes to craft a personal take and see where your research leads. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding ACM Research.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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