Lam Research is a leading provider of equipment and services used in the semiconductor manufacturing process. The company specializes in designing and developing advanced technologies that enable the fabrication of integrated circuits, which are essential components in a wide range of electronic devices. Lam Research’s innovative solutions focus on achieving high productivity, improved performance, and efficiency for semiconductor manufacturers. By offering advanced etch, deposition, and cleaning systems, Lam Research plays a crucial role in enabling the production of smaller, faster, and more energy-efficient chips that power modern technology. Read More
ON Semiconductor has recently seen a significant surge, gaining over 47% in the last three months and outperforming the index's 34% rise, and it currently trades above its 50-day moving average of $47.56.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments.
Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
LAM RESEARCH CORP (NASDAQ:LRCX) offers strong growth, solid profitability, and reasonable valuation, making it an attractive candidate for investors seeking growth at a reasonable price.
Since July 2020, the S&P 500 has delivered a total return of 97.8%. But one standout stock has doubled the market - over the past five years, Lam Research has surged 200% to $97.19 per share. Its momentum hasn’t stopped as it’s also gained 34.2% in the last six months thanks to its solid quarterly results, beating the S&P by 28.5%.
Semiconductors are the picks and shovels of modern technology. Compute-intensive AI workloads are also priming them for the next wave of secular growth,
a trend that has supported the industry over the past six months as its 3.4% return has closely followed the S&P 500.
Lam Research (LRCX) flashed a bullish Golden Cross on its chart, with short-term moving average breaking above long-term average, amid strong demand for its gear from chip giants like TSMC and Samsung.
While the Nasdaq 100 (^NDX) is filled with cutting-edge technology and consumer companies, not all are on solid footing.
Some are dealing with declining demand, high costs, or regulatory pressures that could limit future upside.
