Even Nvidia Has Been Losing to This Unknown Chip Stock With 300% Upside

People who want to outperform Nvidia (NASDAQ:NVDA | NVDA Price Prediction) usually buy stocks like Broadcom (NASDAQ:AVGO) or AMD (NASDAQ:AMD), but this stock may be a smarter choice for you, and you’ve probably never heard of it. It’s called ACM Research (NASDAQ:ACMR). ACMR stock has already outperformed NVDA stock by a wide margin in the past year (up 161% vs 75%), and I believe it is set to keep up the rally.

There’s a cross-border valuation disconnect at play here, which is very interesting and worth looking into. The disconnect is why I believe the stock still has 300%-plus upside.

But first, let’s take a look at what this business does before valuing it.

ACMR is a solid AI hardware play

ACM Research sells specialized equipment for semiconductor manufacturers to process silicon wafers during chip production. The company is based in the U.S, but it derives most of its revenue from China, both directly and indirectly. Its wafer tools are needed to clean chips with extreme precision.

ACM says a substantial majority of its product development, manufacturing, support, and services are in mainland China, and to date, substantially all of its semiconductor equipment sales have been to customers located there. You’re getting direct exposure to China’s enormous AI buildout. It is also benefiting from the U.S. buildout as the company is investing in Oregon to double its U.S. employee base.

This will…