Acm Research Inc. (ACMR) saw its shares plummet 5.25% during intraday trading on Thursday, following reports of U.S. lawmakers raising national security concerns.

A bipartisan group of U.S. lawmakers led by Senator Elizabeth Warren and Tom Cotton expressed concerns over Intel's testing of chipmaking tools made by ACM Research. The lawmakers highlighted ACM Research's deep roots in China and its customers that include sanctioned Chinese companies, sparking questions about whether sensitive information from Intel could be passed to Chinese entities.

The lawmakers noted that ACM Research's involvement with Intel could expose the company to cutting-edge chipmaking processes, potentially improving the competitiveness of Chinese military companies. This regulatory scrutiny and potential national security implications have negatively impacted investor sentiment toward ACM Research.