Lam Research: Phenomenal Long Term Outlook For This Semi Equipment Giant

Michael Duke
243 Followers

Summary

  • Lam Research is a key enabler in the AI Industrial Revolution, providing essential semiconductor fabrication equipment to manufacturers like TSM.
  • The investment thesis hinges on continued steady applications for ever-increasing complexity in semiconductor manufacturing, and Lam's competitive edge in etching technology.
  • Despite cyclical revenue and geopolitical risks, Lam's strong financials, market share, and robust balance sheet make it a compelling buy.
  • Valued at 20x forward earnings with a solid dividend yield, Lam Research offers a reasonable entry point for long-term investors comfortable with volatility.

Lam Research Corporation Headquarters

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Introduction

Lam Research (NASDAQ:LRCX) is a global semiconductor equipment manufacturer that operates behind the scenes of the world’s most powerful tech companies. Unlike high-profile semiconductor firms like Nvidia and AMD, Lam doesn’t design chips—it builds the critical fabrication equipment

This article was written by

243 Followers
I am an investment professional with a background in both equity and real estate markets. I specialize in identifying long-only opportunities that offer safe and growing dividends, aiming to outperform the broader market on a risk-adjusted return basis. In addition to managing my family's investment portfolio, I have extensive experience in real estate investment. I served as an Analyst and Acquisitions Director at a private equity real estate investment firm, where I helped successfully source over $100 million in commercial real estate investments. Prior to that, I was an Analyst on the Structured Credit Products desk of an investment accounting software firm. My emphasis on correlation across asset classes and sectors, background in economics, and passion for markets enable me to provide timely analyses and strategies for investors seeking to enhance their portfolios. I graduated from Boise State University with a degree in Economics, and minored in Applied Mathematics, but researching and investing in equity markets has been my true passion for as long as I can remember. I decided to become a contributor to Seeking Alpha to share my ideas and thoughts on markets as they evolve and provide opportunities for wealth creation. Thank you for reading and following, and I hope you find my work helpful and interesting!

Analyst’s Disclosure:I/we have a beneficial long position in the shares of LRCX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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