#3 - Lam Research (NASDAQ:LRCX)
One more pick in the chip sector is Lam Research Corp. (NASDAQ: LRCX). The company designs, manufactures, and services semiconductor fabrication equipment. LRCX stock is down about 3% in 2024, but the stock is down over 33% from its all-time high in July 2024.
Investors are concerned about a possible crackdown on the company, which generates approximately 37% of its revenue from China. However, Lam Research is likely to offset at least some of its lost revenue from a recovery in the NAND flash memory market. Growth in this core market will also allow the company to expand its operating and gross margins, both of which have been declining with a slowdown in the NAND market.
Analysts give LRCX stock a consensus price target of $97.24, which would be a 28% gain from its price on December 12, 2024. That would correspond to the expected earnings growth of 14.5%.
About Lam Research
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.
Read More - Current Price
- $74.65
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $96.65 (29.5% Upside)
