I've noticed a flurry of institutional activity around LRCX: Vident Advisory boosted its stake by a whopping 971%, Vanguard by 893%, and other big names like FMR, Ameriprise, and Geode also stepped in during the latest quarter. That kind of backing from smart money suggests they see long-term value—potentially around next-gen chip equipment demand.
Lam Research is one of just a few companies supplying critical wafer fabrication tools—etch, deposition, cleaning—to leading-edge fabs ($Taiwan Semiconductor Manufacturing(TSM)$, $Samsung Electronics Co., Ltd.(SSNLF)$, $Intel(INTC)$). Their tech enables the smallest transistor nodes (3 nm, 2 nm, and beyond), which are the backbone of AI, 5G, and high-performance computing. When these technologies are scaling, Lam sits collateral.
On May 21, LRCX declared a $0.23 quarterly dividend, payable July 9, underscoring management’s confidence in healthy profitability and cash flow. That consistency can be attractive in what’s often seen as a cyclical industry.
LRCX has rallied over 25% year-to-date—outperforming peers like NVIDIA, AMD, and Broadcom. Yet it still trades at around 20× forward EPS (~$3.63), a fair valuation given its essential role and growth prospects in semiconductor capital equipment.
The combination of U.S. export controls, incentives to build domestic fabs, and strategic chip investments globally continues to fuel demand for Lam’s advanced tools. Analysts expect ~34% EPS growth in fiscal 2025 thanks to ramping ALD and EUV tooling demand. Though IBD ratings aren't cited today, the institutional accumulation and market headlines point to emerging technical strength.
LRCX Weekly Chart
LRCX closed at $97.34—right in the sweet spot of recent consolidation. Prior support lies near $89.50-$95.50; a dip into that zone could be an ideal entry, with a stop beneath $86.
A breakout above recent highs around $100–$102, especially if volume follows, could target $115–$120 in the next 3–6 months—reflecting broader capex cycles.
The $0.23 quarterly payout (~0.9% yield) offers a cushion during market pullbacks; it's also a signal that Lam’s cash flows remain robust.
Bottom Line
Lam Research sits at the apex of semiconductor manufacturing, with powerful institutional backing, solid cash returns, and growth levers tied to AI and next-gen nodes. At $97.34, it presents a high-probability play in semis—especially for investors tracking the cycle into late 2025. If you're looking to position ahead of another potential fab equipment wave, LRCX demands a serious look.
@MillionaireTiger @Tiger_comments @Daily_Discussion @CaptainTiger @TigerSG
Disclaimer: This is a general analysis and not financial advice. Always conduct your own research before making any investment decisions.
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