What happened
Shares of ACM Research (ACMR -1.81%) were moving higher this week after the maker of semiconductor cleaning equipment reaffirmed its 2022 guidance and posted a strong preliminary forecast for 2023.
According to data from S&P Global Market Intelligence, the stock was up 25.2% for the week as of Thursday afternoon at 2:32 p.m. ET.
Image source: Getty Images.
So what
Shares of ACM Research jumped on Tuesday when the update came out. The company reaffirmed its revenue forecast of $365 million-$385 million in 2022, which implies a growth rate of 44% at the midpoint.
Investors seemed more excited about its 2023 forecast, which called for revenue of $515 million-$585 million, or 47% growth at the midpoint, which comes even as much of the semiconductor industry is struggling.
The company said that forecast is based on its current assessment of any potential impact from the new U.S.-China trade policy as well as the lowering of COVID-19 restrictions in China.
CEO David Wang said: "We expect continued growth in 2023 as we execute on our mission to become a major equipment supplier to the global semiconductor industry. Following a temporary pause by some customers as the industry adjusts to the recent U.S. trade restrictions, we continue to anticipate a recovery in mature node spending as some of our China customers add capacity to better align China's domestic semiconductor production with its market consumption."
Now what
ACM's corporate headquarters are in the U.S., but the company operates in China, serving mostly Chinese semiconductor foundries. Given that position, it's sensitive to U.S.-China trade policy as well as the recent law that restricts U.S. companies from supplying Chinese semiconductor companies with certain equipment, and the challenges among China stocks explain why ACM shares have fallen sharply over the past year.
Wang's comments should help assuage fears that the company will be significantly impacted by the new law, however.
ACM's 2023 forecast, along with increasing demand for semiconductors should help build confidence after the recent crash. As a pick-and-shovel play on semiconductors, ACM looks well positioned for growth if geopolitics don't interfere.
The company will report full fourth-quarter earnings at the end of February.
