B. Riley Designates Ichor Holdings as Top Tech Pick on Semiconductor Outlook

B. Riley Securities has identified Ichor Holdings (ICHR) as its leading stock selection in the technology sector, maintaining a Buy rating and issuing a $105 price target. The firm's analysis, released ahead of the SEMICON West conference, suggests the valuation represents approximately 83% upside potential from current levels.

Analyst's Thesis

B. Riley's positive outlook is anchored in the expectation of accelerating demand for semiconductor equipment, positioning Ichor as a key beneficiary. The company supplies critical components to major equipment manufacturers, including Applied Materials and Lam Research, which are projected to see system growth of over 35% and 15%, respectively, in calendar years 2027 and 2028.

The firm believes Ichor is a leveraged play on these industry bellwethers as they expand capacity across foundry, DRAM, and NAND segments. B. Riley noted Ichor is executing well on a plan to expand its gross margins into the mid-teens to 20% range and projects the company's annualized revenue capacity could grow from $2.0 billion in the near term toward $3.0 billion over the long term.

Financial Outlook and Valuation

B. Riley provided specific multi-year financial estimates for Ichor, which it believes are not fully reflected in the market's current valuation.

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• Revenue Estimates: $1.25 billion (2026), $1.67 billion (2027), and $1.91 billion (2028)
• Earnings Per Share (EPS) Estimates: $1.57 (2026), $3.44 (2027), and $4.68 (2028)

The analyst noted that consensus revenue growth estimates of 29% for 2027 and 10% for 2028 appear conservative. The firm's $105 price target is based on a 22x price-to-earnings (P/E) multiple applied to its calendar year 2028 EPS projection, a multiple that falls in the lower half of the stock's ten-year historical range.

Market Context

The endorsement comes after Ichor's shares have declined approximately 52% in the third quarter of 2026 to date, bringing its forward two-year P/E ratio to 17x, a one-year low. In its most recent report, Ichor announced second-quarter revenue of $294.8 million and a non-GAAP gross margin of 14.1%, which exceeded its guidance and prompted price target increases from other firms, including DA Davidson and Needham.