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It's Time To Pay Attention To Lam Research Corporation


  • The company's growth outpaces the wafer fabrication equipment segment.
  • Miniaturization is a booming business.
  • Lam Research benefits from the growing field of artificial intelligence within data centers (aka the cloud).
  • Data centers are becoming insatiable consumers of DRAM and Nand memory chips.
  • Wearables, smartphones, the automotive application segment, defense and medical industries are now in play.

We continue to find opportunities in the burgeoning fields of technology within the semi-conductor, component and manufacturing realm and Lam Research Corporation (NASDAQ:NASDAQ:LRCX) is now officially on Top Pick watch. Before we get into the company, as always, we get into the themes.

Lam Research Corporation is a leading supplier of wafer fabrication equipment and services to the global semiconductor industry. The company develops innovative solutions that help its customers build smaller, faster, more powerful, and more power-efficient electronic devices - the kind that is driving the proliferation of technology into our everyday lives.

It’s the "smaller, faster, more powerful, and more power-efficient electronic devices" themes that we are focusing on.

Producing the tiny, complex chips used in these devices (often times referred to in whole as "advanced microchips") involves the repetition of a set of core processes and includes hundreds of individual steps. To do this successfully, semiconductor manufacturers require sophisticated processes and fabrication equipment.

Lam’s products play a key role in this, allowing chipmakers to build device features that are more than 1,000 times smaller than a grain of sand. In fact, nearly every leading-edge integrated circuit made today has been processed with Lam Research equipment (Source: Lam Research).

Wafer Fab Equipment

Wafer fab equipment (WFE) are the broad space where Lam Research sits and spending in this segment is expected to reach over $36 billion by 2018. The recent increase in the sale of consumer electronic devices, such as smartphones, hybrid PCs, wearables and video game consoles, is likely to augment growth in the semiconductor market, which in turn will compel growth in the wafer fab equipment market.

Lam Research Corporation has been significantly expanding its market share in the wafer fabrication equipment market. We note that the number one market share position here is another of

This article was written by

Ophir Gottlieb (CEO & Co-founder) — Ophir Gottlieb is the CEO & Co-founder of Capital Market Laboratories (CML).CML is a member of the famed Thomson First Call roster, but our purpose is to provide institutional research to all investors and break the information monopoly held by the top .1%You can follow his stock research, called CML Pro, here: http://bit.ly/CMLProYou can use the option-backtester here: http://bit.ly/Option_TradingOphir Gottlieb is the CEO & Co-founder of Capital Market Laboratories. He is a former contributer to Yahoo! Finance, CNNMoney, MarketWatch, Business Insider, and Reuters. He was rated the 14th best finance follow on all of Twitter. ​ He has turned away from institutional finance and re-dedicated his life to helping all people find the capacity and facility to invest with the same confidence and information available to only the top 0.1%. In many ways, Ophir was unintentionally a part of this asymmetry, but now, he is here to tear it down. ​ Ophir Gottlieb is inventor of the Forensic Alpha Model (FAM) and a co-inventor of Accounting and Governance Risk Model (AGR), both now owned commercially by MSCI. SSRN lists his research, and as far as we can tell, he was one of the earliest scientists to identify deep learning, and in particular, neural networks, as a novel approach to examining financial markets while also whole hardheartedly incorporating corporate governance. ​ Mr. Gottlieb’s methodological approach taken in creating FAM was endorsed by the head of artificial intelligence for the state of Germany as a novel and extraordinary application of advanced machine learning and quantitative finance. ​ FAM and AGR are used by asset managers worldwide with over $1 trillion of assets under management. The FAM model has made Mr. Gottlieb one of the most recognized names in all of quantitative finance. ​ The Huffington Post dedicated an article to Ophir’s views in the dossier Financial Services Third Wave of Innovation: AI & Machine Learning. A rare view into his vision of the world of finance, including a 20 minute video session. Mr Gottlieb’s mathematics, measure theory and machine learning background stems from his graduate work in mathematics and measure theory at Stanford University and his time as an option market maker on the NYSE and CBOE exchange floors. He has been cited by various financial media including Reuters, Bloomberg, Wall St. Journal, Dow Jones Newswire and through re-publications in Barron’s, Forbes, SF Chronicle, Chicago Tribune and Miami Herald and is often seen on financial television. Mr. Gottlieb was an option maker on the NYSE ARCA exchange floor and simultaneously on the Chicago Board Option Exchange (CBOE) remotely. He first gained notoriety as the managing director of client services and algorithmic trading for Livevol Inc, recently acquired by CBOE. He created and authored what was believed to be the most heavily followed option trading blog in the world for three-years. ​

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