The business carries material quality concerns — no identifiable competitive moat and metrics below the minimum threshold — alongside severe customer concentration and an unfavorable risk/reward, making the current setup unsuitable for new positions despite recent positive price and earnings momentum.
Thesis pillars
- Severe Customer Concentration↓Deteriorating
- Quality Below Minimum Threshold→Stable
- Earnings Recovering From Prior Misses↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 20, 2026· older than 90 days
Ichor Holdings (ICHR) Stock Analysis
Inst Constrain edge
Technology · Semiconductor Equipment & Materials
Sell if holding. Engine safety override at $33.71: Quality below floor (2.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 6.0/10 and A.R:R 7.7:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 283.36; Below-average business quality; Negative price momentum.
Ichor Holdings designs, engineers, and manufactures fluid delivery subsystems and components for semiconductor capital equipment OEMs, generating $947.7 million in revenue in 2025. The company is highly concentrated — Lam Research and Applied Materials together accounted for 76%... Read more
Sell if holding. Engine safety override at $33.71: Quality below floor (2.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 6.0/10 and A.R:R 7.7:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 283.36; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 6.0/10, moderate confidence.
Passes 5/7 gates (favorable risk/reward ratio, no SEC red flags, earnings proximity 95d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: speculative.
About Ichor Holdings
About Ichor Holdings
Lam Research and Applied Materials together accounted for 76% of Ichor Holdings' $947.7 million in total sales in 2025, reflecting the extreme customer concentration of a fluid delivery subsystem supplier serving a semiconductor capital equipment market where five companies control over 70% of global wafer fabrication equipment revenue. ASML was also among the company's three largest customers in 2025. The company employed approximately 1,891 full-time employees and 557 contingent workers as of December 26, 2025.
Ichor earns revenue through direct sales of gas delivery subsystems, chemical delivery subsystems, weldments, valves, advanced flow controllers, and precision-machined components to OEMs that outsource these functions rather than manufacture them internally. Pricing is negotiated on a customer-by-customer basis under purchase orders with no long-term volume commitments, meaning revenues fluctuate directly with OEM capital equipment spending cycles. The company competes most directly with Ultra Clean Technology for gas and chemical delivery subsystem contracts, with additional competition from the internal manufacturing groups of OEMs. Gross margins face recurring downward pressure — the 10-K notes that customers 'often require price reductions and quality or delivery commitments' as conditions to purchasing, resulting in 'reduced gross margins' historically. Capital expenditures represented 3.8% of sales in 2025, rising from 2.1% in 2024, reflecting a $36.2 million investment in manufacturing capacity.
Show full overview
Ichor's dependence on two customers for 76% of 2025 revenue means that a production pause, outsourcing reversal, or design award lost at either Lam Research or Applied Materials could have a material impact on total revenue with no realistic near-term replacement. The 10-K discloses that Ichor does 'not have any long-term contracts that require customers to place orders' in fixed volumes, and onboarding a new customer requires a time-consuming qualification process. During the third quarter of 2025, Ichor initiated a Consolidation Restructuring Plan to better align its manufacturing footprint with a softer demand environment — evidence that the semiconductor cycle risk described in the filing is not merely theoretical.
See also: Technology · Semiconductor Equipment & Materials
From Ichor Holdings's most recent 10-K filing, extracted June 10, 2026.
Recent developments
updated Nov 4, 2026Recent Developments — Ichor Holdings
Latest news
- NEWS Stifel Maintains Buy Rating on Ichor Holdings, Lowers Price Target — fiscal.ai Nov 4, 2026 neutral
- NEWS Needham Maintains Buy Rating on Ichor Holdings, Lowers Price Target — fiscal.ai Nov 3, 2026 neutral
- NEWS B. Riley Securities Maintains Buy on Ichor Holdings, Lowers Price Target to $70 — benzinga Nov 3, 2026 neutral
- NEWS TD Cowen Maintains Buy on Ichor Holdings, Lowers Price Target to $55 — benzinga Nov 3, 2026 negative
- NEWS Ichor Analysts Slash Their Forecasts After Q3 Results — benzinga Nov 3, 2026 negative
Latest item Nov 4, 2026 · Generated 2026-11-05T11:39:30Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerLam Research and Applied Materials76%10-K Item 1A: 'two customers with individual sales over 10%, Lam Research and Applied Materials, accounted for a combined 76% of total sales'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $33.71: Quality below floor (2.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 6.0/10 and A.R:R 7.7:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 283.36; Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $32.38. Score 6.0/10, moderate confidence.
Analyst target: $72.43 (+114.9% upside). Prior stop was $32.38. Stop-loss: $32.38.
Concentration risk — Customer: Lam Research and Applied Materials (76.0%); Quality below floor (2.9 < 4.0).
Ichor Holdings trades at a P/E of 481.6 (forward 10.0). TrendMatrix value score: 8.1/10. Verdict: Sell.
13 analysts rate ICHR, with a consensus score of 4.1/5. 8 analysts publish price targets averaging $83.
What does Ichor Holdings do?Ichor Holdings designs, engineers, and manufactures fluid delivery subsystems and components for semiconductor capital...
Ichor Holdings designs, engineers, and manufactures fluid delivery subsystems and components for semiconductor capital equipment OEMs, generating $947.7 million in revenue in 2025. The company is highly concentrated — Lam Research and Applied Materials together accounted for 76% of total 2025 sales — with aerospace and defense representing less than 10% of revenue.