Lam Research Corporation is an American corporation that engages in the design, manufacture, marketing, and service of semiconductor processing equipment used in the fabrication of integrated circuits. Its products are used primarily in front-end wafer processing, which involves the steps that create the active components of semiconductor devices (transistors, capacitors) and their wiring (interconnects). The company also builds equipment for back-end wafer-level packaging (WLP), and for related manufacturing markets such as for microelectromechanical systems (MEMS). The company is headquartered in Fremont, California, in the Silicon Valley.
| Revenue (TTM) | $23.23B |
| Gross Profit (TTM) | $11.73B |
| EBITDA | $8.64B |
| Operating Margin | 37.40% |
| Return on Equity | 65.10% |
| Return on Assets | 22.80% |
| Revenue/Share (TTM) | $18.51 |
| Book Value | $9.97 |
| Price-to-Book | 31.20 |
| Price-to-Sales (TTM) | 16.98 |
| EV/Revenue | 16.47 |
| EV/EBITDA | 43.19 |
| Quarterly Earnings Growth (YoY) | 34.80% |
| Quarterly Revenue Growth (YoY) | 30.00% |
| Shares Outstanding | $1.25B |
| Float | $1.25B |
| % Insiders | 0.28% |
| % Institutions | 88.83% |
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Lam Research is strategically positioned to benefit from accelerating AI CapEx spending, particularly in US data center buildouts. LRCX's expanding gross profit margins and strong demand for AI chips support potential revaluation to a ~30x P/E, implying at least 12% upside from current levels. Recent robust TSMC results for the month of August and projected AI infrastructure spending highlight a favorable supply-demand environment for LRCX and peers.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Applied Materials, Lam Research and KLA stand to benefit as BofA lifts chip equipment spending forecasts amid surging AI, memory and packaging demand.
REX Advisers will launch the REX AI Chipmaking ETF (CHIP) on Nasdaq Wednesday, according to the fund's prospectus. The fund invests in the equipment makers that build the physical machinery behind artificial intelligence (AI) chips, rather than the companies that design them.
LRCX targets mid-40% operating margins as rising revenues, AI-driven demand and higher-margin services support expansion over several years.
Chip equipment stocks are pulling ahead of the broader semiconductor group in Friday morning trading, with buying concentrated in the tools layer rather than across chip designers and foundries.
Applied Materials and Lam Research benefit from AI-driven semiconductor demand, but broader portfolio makes AMAT a safer choice.
Lam Research Corporation (NASDAQ: LRCX) stock has struggled recently, shedding 16.6% in the last week alone.
Lam Research and Applied Materials both posted blowout quarters riding the same AI capex wave, but only one of them moves in genuine lockstep with ASML as EUV adoption accelerates into the next node generation.
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