ACM Research: The Ultimate 10-Bagger in the Making

ACM Research (NASDAQ: ACMR) shares surged on Thursday after short-selling investment firm Kerrisdale Capital announced a long position in the stock, calling it the "ultimate 10-bagger." In a rare bullish call, Kerrisdale 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. ACM Research is one of those national champions, and Kerrisdale predicts that the company will continue to rapidly grow within the Chinese market, supplying an expanding array of tools to China's fast-growing base of fabs.



ACM Research had a market cap of approximately $1.1 billion as of Wednesday's close, 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." The short seller believes that 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.



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, implying a valuation of approximately $4.9 billion for ACM Research. Kerrisdale pointed out that ACM Research 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.

ACMR Price Action: ACM Research shares were up 14.9% at $20.08 at the time of publication Thursday, according to Benzinga Pro. Photo: Shutterstock.ACMRACM Research Inc$19.9614.2%Overview Rating:Speculative50%Technicals Analysis660100Financials Analysis400100WatchlistOverview© 2025 Benzinga.com. Benzinga does not provide investment advice.

In conclusion, ACM Research's strategic positioning as a national champion in China's semiconductor industry, combined with its strong performance and growth potential, makes it an attractive investment opportunity. As the company continues to grow within the Chinese market and expand its market share outside of China, investors should keep a close eye on ACMR stock. With a potential 10x upside, ACM Research could indeed become the ultimate 10-bagger.