The semiconductor sector is experiencing a swift expansion as semiconductors are becoming the fundamental components of contemporary technology. According to IDC’s latest Worldwide semiconductor technology supply chain intelligence report, the global demand for Artificial Intelligence (AI) and High-Performance Computing (HPC) will continue to rise by over 15% in 2025.

Moreover, the growing adoption of the Internet of Things (IoT) and cloud computing has significantly driven the demand for semiconductor chips. These advanced technologies depend heavily on the processing power and data storage capabilities that these chips offer. The semiconductor chip market is expected to grow at a CAGR of 8.4% by 2031.

Against this backdrop, let’s compare two chipmaker stocks, ACM Research, Inc. (ACMR) and Everspin Technologies, Inc. (MRAM), to determine which semiconductor chip stock to buy now.

The Case for ACM Research, Inc. Stock

With a $975.12 million market cap, ACM Research, Inc. (ACMR) develops, manufactures, and sells single-wafer wet cleaning equipment to enhance the manufacturing process and yield for integrated chips worldwide.

ACMR’s stock has plunged 18.5% over the past three months to close the last trading session at $15.57.

Its trailing-12-month gross profit margin and asset turnover ratio of 49.36% and 0.45x are 2.8% and 26.1% lower than the industry averages of 50.78% and 0.62x, respectively.

In the fiscal third quarter that ended September 30, 2024, ACMR’s non-GAAP revenue was reported at $203.98 million. Moreover, its net income came in at $42.37 million, and earnings per share stood at $0.63.

Analysts expect ACMR’s revenue for the fourth quarter (ended December 2024) to be $181.15 million. However, the company’s EPS for the same quarter is expected to decline 27.3% year-over-year to $0.31.

ACMR’s bleak fundamentals are reflected in its POWR Ratings. The stock has an overall D rating, equating to a Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

The stock has a D grade for Stability and Quality. Within the Semiconductor & Wireless Chip industry, ACMR is ranked #71 out of 90 stocks.

In addition to the POWR Ratings I’ve just highlighted, you can see ACMR’s ratings for Growth, Value, Sentiment, and Momentum here.

The Case for Everspin Technologies, Inc. Stock

Valued at $140.84 million by market cap, Everspin Technologies, Inc. (MRAM) engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magnetoresistance sensor products, as well as foundry services for MRAM products.

MRAM’s stock has gained 11.3% over the past three months to close the last trading session at $156.40.

Its trailing-12-month asset turnover ratio and trailing-12-month gross profit margin of 0.79x and 53.90% are 29% and 6.4% higher than the industry averages of 0.62x and 50.78%, respectively.

For the third quarter that ended September 29, 2024, MRAM’s total revenue stood at $12.10 million. Its net income came in at $2.28 million. Its net income per share stood at $0.10.

Street expects MRAM’s revenue for the fourth quarter ended December 2024 to be $12.50 million. Its EPS is expected to be $0.06. Moreover, the company has surpassed revenue and EPS estimates in three of the trailing four quarters.

MRAM’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

MRAM has an A grade for Sentiment and a B for Quality and Value. It is ranked #7 in the same industry.

Click here for the additional POWR Ratings for MRAM (Growth, Stability, and Momentum).

ACM Research (ACMR) vs. Everspin Technologies (MRAM): Which Semiconductor Stock Should You Buy Now?

The semiconductor market is characterized by its high level of innovation and rapid technological advancements, driving the demand for newer and more efficient semiconductor devices.

Popular semiconductor companies, such as ACMR and MRAM, stand to capitalize on bright industry growth prospects. However, MRAM’s higher profitability and promising near-term outlook favor it as the better chip stock pick.

Our research shows that the odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Semiconductor & Wireless Chip industry here.

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ACMR shares were trading at $15.67 per share on Friday afternoon, up $0.10 (+0.64%). Year-to-date, ACMR has gained 3.77%, versus a 1.03% rise in the benchmark S&P 500 index during the same period.

About the Author: Nidhi Agarwal

Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities. More...

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