When it comes to media and investor attention, semiconductor stocks are among some of the hottest right now. This is because of artificial intelligence, and the expected shift to accelerated computing for businesses and consumers. With the PHLX Semiconductor (SOX) index up by over 50% in the past year, some semiconductor companies have seen even better performance. In this article, we’ll take a closer look at ACM Research, Inc. (NASDAQ:ACMR), which is one the high growth semiconductor stocks that are profitable in 2024.
ACM Research, Inc. (NASDAQ:ACMR)
ACM Research, Inc. (NASDAQ:ACMR) is a mid-sized semiconductor manufacturing equipment designer and seller. It is a specialized company since it focuses on just one aspect of the broader chip manufacturing process. This aspect sees ACM Research, Inc. (NASDAQ:ACMR) sell machines that allow chip makers to use chemicals to clean silicon wafers during semiconductor fabrication.
Analyzing ACM Research, Inc. (NASDAQ:ACMR)’s Recent Performance
ACM Research, Inc. (NASDAQ:ACMR)’s latest financial results were quite impressive in terms of annual growth. For its first quarter of 2024 earnings, the firm reported $152 million in revenue and $17.4 million in net income. The net income translated into basic earnings per share of $0.28. Additionally, ACM Research, Inc. (NASDAQ:ACMR)’s first-quarter non-GAAP net income per diluted share stood at $0.52, which not only beat analyst estimates, but also added to a string of beats from the previous quarters.
ACM Research, Inc. (NASDAQ:ACMR) Has Demonstrated Revenue Growth & Profitability
ACM Research, Inc. (NASDAQ:ACMR)’s latest quarterly revenue growth stood at ~105%, which nearly doubled over the previous quarter’s growth of 43.44%. Additionally, on a revenue growth basis only, ACM Research, Inc. (NASDAQ:ACMR)’s figures for the past three and five year average annualized revenue growth rates as of December 2023 are 52.71% and 49.52%, respectively. In dollar terms, annual revenue between 2020 and 2023 sat at $156 million, $259 million, $388 million, and $557 million, respectively. This means that on an absolute basis, revenue more than doubled in 2023 in comparison to 2020, as is also the case with several other high growth semiconductor stocks. Taking a deeper look at its income statement, ACM Research, Inc. (NASDAQ:ACMR) has also demonstrated impressive operating and net income growth.
What Are Analysts Saying About ACM Research, Inc. (NASDAQ:ACMR)?
Since ACM Research, Inc. (NASDAQ:ACMR) is a small-cap stock and has a market capitalization under $2 billion, not many analysts are covering it. One notable analyst note in 2024 came from Goldman Sachs. It upgraded ACM Research, Inc. (NASDAQ:ACMR) to Buy from Neutral and raised the price target to $39 from $22. The average of seven one-year share price targets for ACM Research, Inc. (NASDAQ:ACMR) is $37.79, which represents a hefty upside of 63%.
Does ACM Research, Inc. (NASDAQ:ACMR) Sit At The Top When It Comes To Profitable Revenue Growth Stocks?
The potential stock price upside and multiple line-item growth rates would make ACM Research, Inc. (NASDAQ:ACMR) appear quite a lucrative investment. However, the firm’s limited business operations could mean that it leaves space open for rivals. Semiconductor fabrication is seeing significant interest in the US, particularly due to the CHIPS And Science Act earmarking billions in US government funding to firms seeking to secure America’s semiconductor supply chain.
ACM Research, Inc. (NASDAQ:ACMR) isn’t present on our list of the top analyst A.I. stock picks, even though it is a part of the semiconductor industry. Similarly, it isn’t a hot Cathie Wood stock either.
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So, you can read 12 Best Artificial Intelligence Stocks to Buy Now According to Wall Street Analysts here and Cathie Wood’s Latest Stock Portfolio: Top 10 Stock Picks here.
Disclosure: None. Is ACM Research, Inc. (NASDAQ:ACMR) A High Growth Semiconductor Stock That’s Profitable? was originally published on Insidermonkey.com.