What It Does: Lam Research manufactures the etch and deposition equipment used in semiconductor fabrication. If ASML prints the pattern, Lam carves and layers the materials. Its tools are critical for creating the 3D structures in advanced logic and memory chips — including the high-bandwidth memory (HBM) stacks that power AI GPUs. As chips become more complex, the number of etch and deposition steps per wafer increases, directly expanding Lam’s content per wafer.
How the Stock Looks: LRCX trades near $82 in mid-April 2026 (post-split adjusted). The stock has pulled back from 2024 highs as semiconductor equipment sentiment cooled, but fundamentals remain strong. Revenue grew 17% in fiscal 2025, driven by NAND recovery and HBM demand. Gross margins are stable at 47–48%. The company returns significant capital to shareholders via buybacks and a growing dividend.
What Analysts Are Saying: 22 analysts rate LRCX a Buy with an average price target of $105. Bernstein, Goldman, and KeyBanc are bullish, noting that HBM stacking and advanced packaging are structural growth drivers for Lam’s etch tools. Bears worry about cyclical memory capex and China revenue exposure. But AI-driven chip complexity is a secular trend that favors Lam’s portfolio.