Here is how Lam Research (LRCX) and CTS (CTS) have performed compared to their sector so far this year.
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LRCX nearly triples in a year, yet AI chip demand, record revenues, margin gains and strong earnings forecasts point to further upside potential.
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The latest trading day saw Lam Research (LRCX) settling at $292.66, representing a +1.51% change from its previous close.
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Lam Research is upgraded to a buy as accelerating growth, margin expansion, and reduced China risk improve risk/reward after the recent pullback. The company delivered 30% YoY revenue growth in the June quarter, driven by robust AI and memory demand, with inventory turns and margin gains confirming strong fundamentals. Guidance for the September quarter signals further acceleration: 52% YoY revenue growth and 71% YoY EPS growth expected. Tailwinds are set to strengthen.
Lam Research (LRCX) reported earnings 30 days ago. What's next for the stock?
LRCX looks like the better chip-stock buy, supported by AI-driven growth, strong earnings momentum, recurring services and a robust balance sheet.
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.