Lam Research Stock News

This semiconductor equipment company recently delivered solid results and an impressive outlook.

2024 has witnessed notable stock splits, with one of the standout names being semiconductor giant Nvidia (NASDAQ: NVDA). Now, an artificial intelligence (AI) tool has offered insights into which equities that underwent a split might present an immediate investment opportunity.

Applied Materials, Lam Research, and Tokyo Electron are the three generalists in the Wafer Fab Equipment sector. With wide moats, fueled by scale, switching costs, and customer relationships, they wield high dominance over their markets and are indispensable to their customer base. Due to a very low valuation relative to its peers or the market, as well as on an absolute basis, I rate Tokyo Ele...

In the week heading into the first quarter earnings report for its 2025 fiscal year (FY), Lam Research Corp. NASDAQ: LRCX stock was down nearly 15%. Furthermore, analysts were lowering their price targets for LRCX stock over concerns of slowing growth that would make it difficult to see the stock outperforming the market.

A competitive edge, growth potential, and valuation make these companies a compelling investment.

An industry expert forecasts that the NAND memory market will grow in 2025, driven by Solid-State Devices and smartphones. Industry experts expect NAND memory manufacturers to increase CapEx in 2025, which should benefit Lam significantly. The company's one-year forward PEG ratio of 0.77 indicates potential undervaluation.

Lam Research Corporation has underperformed the S&P 500 by 35% since early July, and its valuations have reset. We reiterate our buy rating after 1Q FY25 results and outlook. We think the high shipments to China concern is done, with China shipments expected to drop to 30% of total sales next quarter. Now, WFE spend from outside of China should fill the gap and support outperformance in FY25.