Latest news with #LRCX
Yahoo
4 days ago
- Business
- Yahoo
This Magnificent Semiconductor Stock Has Shot Up 60% in 3 Months. It Can Still Soar Higher.
Semiconductor equipment supplier Lam Research has shot up impressively in the past three months, and it is still trading at an attractive valuation. The construction of semiconductor plants worldwide should be a tailwind for the company, leading to solid growth in its bottom line. Lam's growth potential and valuation suggest that this chip stock is on track to deliver more gains. 10 stocks we like better than Lam Research › Lam Research (NASDAQ: LRCX) stock has made a parabolic move in the past three months, jumping an impressive 60% in this short period and outperforming the tech-laden Nasdaq Composite index's 31% returns by a huge margin. The good part is that Lam Research is trading at attractive levels despite this impressive surge. What's more, the impressive growth that Lam has been clocking in recent quarters seems sustainable thanks to the aggressive spending on semiconductor fabrication plants around the globe. Does this mean Lam Research stock will be able to continue its momentum and deliver more gains? Let's find out. Lam Research sells semiconductor manufacturing tools and equipment, which are used for making chips that are deployed in multiple applications. The company's equipment is sold in key chip manufacturing hotspots worldwide, such as Taiwan, South Korea, Japan, the U.S., and China. China is the company's largest market, accounting for almost a third of its top line in the first nine months of fiscal 2025 (for the period ended March 30). Lam's latest fiscal year has just concluded, and the company's guidance suggests that it ended fiscal 2025 with $18.3 billion in revenue. That would be a 23% increase from the year-ago period. The bottom-line growth is expected to be stronger at 33% from last year, increasing to $4.01 per share in fiscal 2025. The good part is that Lam has achieved such healthy growth despite reduced reliance on the Chinese market. The company has been hamstrung by the U.S. government's restrictions on exports of semiconductor technology to China. As a result, its Chinese revenue in the first nine months of the year dropped by 9% from the same period last year, when the country produced more than 43% of Lam's top line. A look at the following chart indicates that Lam's growth rate has picked up impressively in the past year and a half, even after the decline in its Chinese business. This can be attributed to the aggressive investments in semiconductor manufacturing capacity by foundries and chipmakers around the world. Taiwan Semiconductor Manufacturing, for instance, is set to increase its capital expenditure to $40 billion in 2025 at the midpoint of its guidance range, a jump of $10 billion from last year. TSMC plans to direct 70% of its capex this year toward shoring up its production capacity of advanced chip nodes, which are in great demand thanks to artificial intelligence (AI). Importantly, the robust need for advanced chips, such as those manufactured on 2-nanometer (nm) process nodes, is expected to boost the semiconductor industry's capex by $194 billion in 2030 and $705 billion in 2035. McKinsey, on the other hand, estimates that semiconductor companies worldwide are likely to invest about $1 trillion in new plants through 2030. Lam Research is on track to capitalize on a massive secular growth opportunity in the semiconductor equipment market. This explains why analysts are expecting a nice jump in its earnings going forward. What's more, Lam is trading at an attractive 27 times earnings even after its impressive rally. Its forward earnings multiple of 23 further indicates that the stock is undervalued after taking its growth potential into account. After all, these multiples are lower than the tech-laden Nasdaq-100 index's average earnings multiple of 32. Assuming Lam manages to hit $4.75 per share in earnings in the next fiscal year (as per the chart above) and trades in line with the Nasdaq-100's earnings multiple, its stock price could jump to $152. That would be a 52% increase from current levels. Investors, therefore, can still consider buying this semiconductor stock, as it has the potential to deliver more upside in the future. Before you buy stock in Lam Research, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lam Research wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lam Research and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. This Magnificent Semiconductor Stock Has Shot Up 60% in 3 Months. It Can Still Soar Higher. was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Lam Research Corporation Announces June Quarter Financial Conference Call
FREMONT, Calif., July 9, 2025 /PRNewswire/ -- Lam Research Corp. (NASDAQ: LRCX) today announced that the company will host its quarterly financial conference call and webcast on Wednesday, July 30, 2025, beginning at 2:00 p.m. Pacific Daylight Time (5:00 p.m. Eastern Daylight Time). Webcast: To access the webcast, visit the Investors section of Lam's website at and click on the Investors/Investors Overview/Events & Presentations section to view the details. Replay Information: A webcast replay will be available on the Lam Research website approximately three hours after the conference call concludes. About Lam Research Lam Research Corporation (NASDAQ: LRCX) is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam's equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research is a FORTUNE 500® company headquartered in Fremont, California, with operations around the globe. Learn more at (LRCX). IR Contact: Ram GaneshInvestor Relations(510) Source: Lam Research Corporation, (Nasdaq: LRCX) View original content to download multimedia: SOURCE Lam Research Corporation
Yahoo
7 days ago
- Business
- Yahoo
AMAT Rides on AI Demand: Will Logic and DRAM Strength Last?
Applied Materials AMAT is benefiting from rising demand for AI infrastructure, with its Logic and DRAM businesses gaining traction. Since AI operations need both logic chips to process AI workloads and memory chips to store the data, global semiconductor companies are competing to be the first-to-market to deliver major architecture innovations in logic, compute memory and packaging for AI workloads. These factors are increasing the demand for fabrication, patterning and advanced packaging systems, creating opportunities for AMAT. Other technologies like next-generation gate-all-around transistors, backside power delivery, 4F2 and 3D DRAM, which are going to be critical for AI workload, will further drive AMAT's growth. AMAT's Sym3 Magnum etch system is also gaining traction because of its capability to develop high-aspect-ratio structures in 3D NAND, DRAM and logic, which are powering AI and HPC workloads. Its Sym3 Magnum etch system has generated more than $1.2 billion in revenues since its launch in February 2024. The Cold Field Emission eBeam technology, which enables manufacturers to detect defects at the nanometer scale, is also expected to gain traction as chips miniaturize to support AI. Coming to DRAM, the management has projected that revenues from its advanced DRAM customers to grow more than 40% in fiscal 2025. The growth is likely to be driven by an increase in demand for AMAT's DDR5 and high-bandwidth memory used in AI workloads. Lam Research's LRCX memory segment, accounting for both Dynamic Random Access Memory and Non-Volatile Memory divisions, is gaining traction on the back of AI. In the third quarter of fiscal 2025, LRCX's memory segment revenues jumped nearly 24% year over year to $1.31 billion, while the NVM division's sales grew approximately 21% year over year in the third quarter. Both DRAM and NAND revenues were driven by growth in chip demand to support the massive storage and input-output speeds required for AI workloads. The rising demand for AI chips is also ramping up the demand for advanced process control and process-enabling solutions provided by KLA Corporation KLAC. KLAC's advanced packaging solutions are also experiencing robust traction on the back of AI and high-performance computing. The company, in its third-quarter fiscal 2025 earnings, projected that its advanced packaging business will touch $850 million in 2025 from $500 million in 2024. Shares of Applied Materials have gained 19.9% year to date compared with the Electronics - Semiconductors industry's growth of 13.3%. Image Source: Zacks Investment Research From a valuation standpoint, Applied Materials trades at a forward price-to-sales ratio of 5.23X, lower than the industry's average of 8.6X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Applied Materials' fiscal 2025 and 2026 earnings implies year-over-year growth of 9.48% and 5.60%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward in the past 60 days. Image Source: Zacks Investment Research Applied Materials currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
08-07-2025
- Business
- Yahoo
2 Profitable Stocks Worth Investigating and 1 to Be Wary Of
While profitability is essential, it doesn't guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity". Not all profitable companies are created equal, and that's why we built StockStory - to help you find the ones that truly shine bright. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may face some trouble. Trailing 12-Month GAAP Operating Margin: 4.1% Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services. Why Do We Steer Clear of CHRW? Annual sales declines of 12.1% for the past two years show its products and services struggled to connect with the market during this cycle Issuance of new shares over the last two years caused its earnings per share to fall by 13.7% annually, even worse than its revenue declines Eroding returns on capital suggest its historical profit centers are aging C.H. Robinson Worldwide is trading at $96.50 per share, or 20x forward P/E. Check out our free in-depth research report to learn more about why CHRW doesn't pass our bar. Trailing 12-Month GAAP Operating Margin: 30.9% Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors. Why Could LRCX Be a Winner? Excellent operating margin of 29.6% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled Strong free cash flow margin of 26.6% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety Industry-leading 63.1% return on capital demonstrates management's skill in finding high-return investments At $98.01 per share, Lam Research trades at 26x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it's free. Trailing 12-Month GAAP Operating Margin: 21.8% One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare. Why Are We Bullish on GE? Annual revenue growth of 14.5% over the last two years was superb and indicates its market share increased during this cycle Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy Improving returns on capital reflect management's ability to monetize investments GE Aerospace's stock price of $248.60 implies a valuation ratio of 44.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
Yahoo
07-07-2025
- Business
- Yahoo
Citi adds Applied Materials to focus list on valuation gap with peers
-- Citi added Applied Materials (NASDAQ:AMAT) to its U.S. focus list, citing an improving sales outlook and an unwarranted valuation gap with semiconductor capital equipment peers Lam Research (NASDAQ:LRCX) and KLA Corp. The brokerage said AMAT shares, up 17% this year, have trailed LRCX and KLAC by 25 percentage points due to tougher first-half comparisons tied to weaker DRAM and advanced packaging demand. But it expects the second half of 2025 to mark a turning point, helped by stronger memory pricing and a more favorable mix of end markets. We model AMAT 2H25 sales up 2% H/H versus LRCX and KLAC down 3%,' Citi analysts wrote, pointing to AMAT's strong position in DRAM equipment and improved industry pricing for graphic memory chips. Citi also said investor concerns about weakening demand from China were already reflected in Applied's forecasts. The company expects China sales, excluding its display business, to settle in the mid-20% range of total revenue. That aligns with expectations for a sharp drop in foreign equipment purchases in China next year, the firm noted. Valuation was another key driver for the call. Applied trades at a 25%–33% price-to-earnings discount to Lam Research and KLA, wider than its historical average of 11%–15%, despite improvements in its core silicon business and gross margins approaching 48%. Citi maintained its 'buy' rating on the stock but warned that macroeconomic uncertainty, U.S. policy risks related to China and Taiwan, and reliance on AI-related demand remain potential headwinds. Related articles Citi adds Applied Materials to focus list on valuation gap with peers UBS starts GE Vernova at Buy as AI-driven power demand to fuel earnings surge Why Citi is turning more bullish on semi equipment stocks Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
