Ichor: Leveraging the Semiconductor Equipment Upcycle and Cost Transformation for Margin Expansion and Upside Potential

Krish Sankar, an analyst from TD Cowen, maintained the Buy rating on Ichor Holdings. The associated price target is $55.00.

Krish Sankar has given his Buy rating due to a combination of factors tied to Ichor’s positioning entering a new semiconductor equipment upcycle and its improving financial profile. He highlights that the company has moved past its cyclical trough, with demand recovery driven by customer inventory rebuilding rather than short‑term pull‑ins, and forecasts sequential growth through 2026, especially as Ichor’s exposure to deposition and etch tools benefits from technology transitions such as GAA and HBM.

At the same time, he underscores a compelling margin expansion story as Ichor executes on manufacturing consolidation, insourcing, and greater vertical integration, which should allow gross profit to rise faster than revenue and push gross margins above 15% at roughly a $300M per quarter run rate. While acknowledging headwinds like slower growth with a key lithography customer and a higher tax rate, he views these as manageable relative to the upside from the cost transformation plan and the long‑term potential to diversify beyond its largest semiconductor customers, supporting a meaningfully higher price target.

According to TipRanks, Sankar is a top 100 analyst with an average return of 41.4% and a 65.80% success rate. Sankar covers the Technology sector, focusing on stocks such as Micron, KLA, and Applied Materials.