#6 - Lam Research (NASDAQ:LRCX)
Semiconductors are referred to as the picks and shovels of the AI revolution. With that in mind, Lam Research Corp. (NASDAQ: LRCX) is the pick and shovel for the chipmakers. The company isn’t a foundry or a design shop; rather, it makes wafer-fabrication equipment and related services that the chipmakers need.
Specifically, the company makes etch and deposition machines that allow chips to be stacked vertically. As the world needs more chips, chipmakers will need the services that Lam Research offers.
After several quarters of lower revenue and earnings year over year, the trend reversed in the fourth quarter. This correlates with many chipmakers upgrading their forecasts over the next several quarters.
Analysts have a consensus Moderate Buy rating on LRCX stock with a price target of $141.28. That’s an impressive 94% upside from its current price. This comes after the company completed a 10-for-1 stock split in early October 2024.
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
- $74.35
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $97.03 (30.5% Upside)
