Lam Research (NASDAQ: LRCX), a prominent supplier of equipment for chip fabrication, is poised to gain from the increasing capital expenditures driven by the burgeoning generative artificial intelligence industry. While AI leader Nvidia (NASDAQ: NVDA) grabs attention with its stock price soaring more than 3 times over the last two years and its valuation approaching $4 trillion, less known companies like Lam play an essential role in the manufacturing of the AI chips that Nvidia markets.
Lam Research (LRCX) concluded the recent trading session at $98.83, signifying a +2.09% move from its prior day's close.
Lam Research (LRCX) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
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Lam Research's AI-powered Dextro cobot targets fab inefficiencies, aiming to drive CSBG growth and expand margins through automation.
Here is how Lam Research (LRCX) and Couchbase, Inc. (BASE) have performed compared to their sector so far this year.
Lam Research exceeded expectations in Q3 FY25, driven by strong demand for its ALTUS Halo and Akara systems and operational excellence from its 'Close to the Customer' strategy. Financial results were robust: revenue up 24% YoY, record gross margins, expanding operating margins, and strong cash flow, supporting continued buybacks and dividends. Valuation remains attractive with a low PEG ratio, secular AI-driven tailwinds, and solid shareholder returns, despite some near-term risks from China exposure and DRAM market uncertainty.
LRCX climbs 25.3% YTD as AI and data center demand boost growth, while its valuation stays appealing.
Lam Research delivered strong March quarter results, with revenue growth near three-year highs, beating expectations and demonstrating robust business activity. Guidance for the June quarter is impressive, projecting accelerated revenue and EPS growth, alongside further margin expansion, signaling continued operational momentum. Despite China exposure and export restriction risks, ongoing trade talks suggest no immediate threat to growth, supporting a positive outlook for the company.
Lam Research (LRCX) reached $90.49 at the closing of the latest trading day, reflecting a -1.9% change compared to its last close.
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Lam Research bets on CSBG's steady revenues and Semiverse's innovation to offset cyclicality and outpace rivals in chipmaking.