ACM Research (ACMR)
ACM Research (NASDAQ:ACMR) is a leading supplier of wet processing equipment and technologies for the semiconductor industry. Semiconductor manufacturers use ACM’s wet-cleaning and front-end processing tools to produce higher yields in their manufacturing processes. The company focuses on China, where it conducts most of its product development, manufacturing and support services. Though China is still enduring a slower-than-expected economic recovery, innovations within its semiconductor industry have been one of the bright spots, and ACM certainly stands to benefit.
Wall Street analysts have looked upon ACMR fondly. According to Koyfin, the stock currently has a “strong buy” rating. The stock only trades at 17.0x forward earnings, which is not cheap but also far from semiconductor equipment peers, including Cohu (NASDAQ:COHU) and Veeco Instruments (NASDAQ:VECO).
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) is a global leader in high-performance server solutions for enterprise, cloud, data center and edge computing. The company offers a wide range of products, such as servers, storage systems, networking devices and software solutions that are customized to meet the specific needs of its customers. In recent years, Super Micro Computer has benefited from the increasing demand for cloud infrastructure and data processing capabilities, generating strong, double-digit revenue growth in their fiscal years 2022 and 2023.
In their first quarter of fiscal 2024 earnings print, which ended in September 2023, the company beat both revenue and net income estimates. Furthermore, Super Micro Computer’s end-markets, which include AI and 5G applications, will be in high demand for years to come, resulting in analysts giving the company a “strong buy” rating.
Camtek (CAMT)
Camtek (NASDAQ:CAMT) is a leading inspection and metrology equipment manufacturer for the semiconductor industry. The company’s products enable chipmakers to detect defects and measure the critical dimensions of wafers and circuits during manufacturing. Robust demand for semiconductors, especially from the memory and advanced packaging segments, has benefitted Camtek’s top-line growth for many years.
However, in 2023, the company has definitely hit a speed bump as the chip slump has negatively affected many semiconductor companies (albeit some more than others) this year. During the third quarter, for example, the company reported only a 2% decline in revenue from a year-over-year perspective. However, analysts seem optimistic about Camtek’s long-term potential, as the stock maintains a “strong buy” rating.
Moreover, as the chip slump appears to be approaching an end, Camtek could see more growth next year.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.