Lam Research Corporation (LRCX)

Lam Research's share price was $97.20 as of June 27, 2025, representing an 8.36% decline from July 1, 2024, but has shown recent positive momentum. In early 2025, Lam Research received several analyst upgrades from Keybanc, Cantor Fitzgerald, and Susquehanna. Lam Research reported strong second-quarter fiscal 2025 results, with both top and bottom lines surpassing estimates. The company exceeded Wall Street's revenue expectations for Q3 Fiscal 2025. Improved sentiment around U.S.-China trade relations contributed to a rally in LRCX shares. The rising demand for artificial intelligence and datacenter chips has positioned Lam Research favorably. Shares of Lam Research fell in October 2024 after ASML pre-announced weak earnings.

The semiconductor industry is cyclical, with rapid changes in customer demand and spending. Despite this, there is a long-term rise in demand for semiconductors, driven by the increasing importance of technology in various sectors. Lam Research is well-positioned to capitalize on this trend due to its expertise in 3D device scaling, multiple patterning, and advanced packaging chip integration. Recent performance shows a positive shift, with four consecutive quarters of growth, suggesting the company is in the middle of an upcycle. A significant portion of Lam Research's business comes from its memory segment, which is expected to account for closer to 50% going forward, driven by AI.

Lam Research Corporation is a global supplier of wafer fabrication equipment and related services to the semiconductor industry. The company's products are primarily used in front-end wafer processing and also provides equipment for back-end wafer-level packaging and related manufacturing markets. Lam Research's major products and services include thin film deposition systems, plasma etch equipment, photoresist strip systems, wafer cleaning equipment, and high-precision mass metrology systems. The company's equipment is essential for producing advanced chips like 3D NAND flash memory and DRAM, and its customer base includes leading semiconductor memory, foundry, and integrated device manufacturers.

Lam Research has a significant global presence with sales and service operations in key regions around the world, including the United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. In fiscal year 2024, the company's revenue distribution by geography was: China (42.2%), South Korea (19.3%), Taiwan (11.2%), Japan (9.8%), the US (7.4%), Southeast Asia (5.3%), and Europe (4.7%). The company also has global production facilities in the United States, South Korea, Austria, and a new advanced technology production facility in Penang, Malaysia.

Lam Research has a strong reputation for pioneering innovations in etch, deposition, and cleaning technologies. The company is recognized for its market leadership and technological expertise, holding a top market share in etch technology and a clear second share in deposition. Lam Research maintains strong, long-standing relationships with leading chip manufacturers and its strategic positioning enhances its standing.

Lam Research is primarily owned by institutional shareholders, who hold approximately 79.86% of the company's shares. Retail investors own about 19.78%, and Lam Research insiders hold 0.36%. The largest individual Lam Research shareholder is Vanguard Group Inc, owning 10.10% of the company. As of April 2025, individual insiders hold less than 1% of the company's shares, and insider trading activity has shown more selling than buying.