Market Capitalization Changes - Tesla's market capitalization increased by 6.75% to $1,025.4 billion [3] - TSMC's market capitalization rose by 5.93% to $969.7 billion [3] - Tencent's market capitalization grew by 4.66% to $609.8 billion [3] - Netflix's market capitalization decreased by 2.65% to $472.3 billion [3] - Oracle's market capitalization increased by 4.58% to $440.8 billion [3] Notable Performers - Shopify saw a significant increase of 13.7% in market capitalization, reaching $136.2 billion [4] - AppLovin experienced a remarkable rise of 89% to $1.177 billion [4] - AMD's market capitalization increased by 5.13% to $175.3 billion [5] - Uber's market capitalization rose by 6.39% to $184.2 billion [5] Decliners - Pinduoduo's market capitalization fell by 6.14% to $165.2 billion [4] - Xiaomi's market capitalization decreased by 2.11% to $163.4 billion [4] - Spotify's market capitalization declined by 4.23% to $127.3 billion [4] Other Companies of Interest - Adobe's market capitalization increased by 3.3% to $168.7 billion [4] - Qualcomm's market capitalization rose by 4.78% to $167.0 billion [4] - Intel's market capitalization increased by 3.55% to $96.7 billion [5] - Airbnb's market capitalization grew by 5.64% to $828 million [5]

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score simplifies the process of finding promising growth stocks by analyzing a company's real growth prospects beyond traditional metrics [2] - Lam Research (LRCX) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth indicating strong prospects [3] - Lam Research has a historical EPS growth rate of 11.2%, but projected EPS growth for this year is 32.6%, significantly higher than the industry average of 22.3% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important indicator of efficiency in growth investing [5] - Lam Research has an S/TA ratio of 0.88, outperforming the industry average of 0.49, indicating better asset efficiency [5] Group 4: Sales Growth - Sales growth is another key metric, with Lam Research expected to achieve a sales growth of 21.8% this year, compared to the industry average of 4.8% [6] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions are correlated with stock price movements, and Lam Research has seen a positive trend with current-year earnings estimates rising by 6.4% over the past month [7] Group 6: Overall Assessment - Lam Research has earned a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, indicating it is a solid choice for growth investors [9]

Core Viewpoint - The global semiconductor sales continue to grow in Q1 2025, but there is a significant performance divergence among major chip manufacturers, influenced by market and product differences, particularly in AI and storage sectors, while automotive chip manufacturers are struggling [1]. Chip Design (Including IDM) - Texas Instruments (TI) reported Q1 revenue of $4.07 billion, a year-over-year increase of 11% and a sequential increase of 2%. The company expects Q2 revenue between $4.17 billion and $4.53 billion [3]. - STMicroelectronics (ST) reported Q1 revenue of $2.52 billion, a year-over-year decline of 27.3%, with a net profit of $56 million, down 89.1% [5]. - NXP's Q1 revenue was $2.84 billion, down 9% year-over-year, with a significant decline in automotive market revenue [6]. - Qualcomm's Q1 revenue reached $10.98 billion, a year-over-year increase of 16.9%, driven by growth in mobile, automotive, and IoT sectors [8]. - MediaTek's Q1 revenue was NT$153.31 billion, up 14.9% year-over-year, exceeding operational targets due to increased market demand [9]. Semiconductor Manufacturing - TSMC's Q1 revenue was $25.53 billion, a year-over-year increase of 35.3%, with a gross margin of 58.8% [42]. - UMC reported Q1 revenue of NT$57.86 billion, a year-over-year increase of 5.9%, with a focus on 22/28nm process technology [46]. - World Advanced's Q1 revenue was NT$11.949 billion, a year-over-year increase of 24%, achieving a net profit of NT$2.414 billion [48]. Chip Distribution - WPG Holdings reported Q1 revenue of NT$248.83 billion, a year-over-year increase of 36.8%, driven by demand from AI and related sectors [58]. - Winstek Technology's Q1 revenue was NT$247.4 billion, a year-over-year increase of 28% [60]. - Arrow Electronics reported a 6% year-over-year decline in sales, totaling $5.3 billion [64]. Domestic Semiconductor Companies - Over 70% of semiconductor companies listed in A-shares reported year-over-year revenue growth in Q1 2025, with 60.63% of companies showing profit increases [35]. - Weir Shares reported a 14.68% year-over-year revenue increase in Q1, with a net profit increase of 55.25% [38]. - Zhaoyi Innovation's Q1 revenue was 1.909 billion yuan, a year-over-year increase of 17.32% [40].

Core Viewpoint - The semiconductor industry is experiencing growth driven by the AI boom, with Applied Materials (AMAT) and Lam Research (LRCX) being key players in this sector, each with distinct strengths and challenges in their investment profiles [2][17]. Group 1: Applied Materials (AMAT) - AMAT is a major manufacturer of semiconductor fabrication equipment, focusing on deposition, etching, and inspection, which are critical for chip manufacturing [3]. - The company is leveraging AI-driven semiconductor technology, which is expected to create long-term growth prospects [3]. - In fiscal 2024, AMAT's revenues from advanced semiconductor nodes surpassed $2.5 billion, with expectations to double this figure in fiscal 2025 due to increased customer adoption of GAA and backside power delivery solutions [5]. - In the first quarter of fiscal 2025, AMAT reported a 7% increase in revenues and a 12% increase in non-GAAP EPS [5]. - However, AMAT faces challenges, including U.S. government export restrictions on semiconductor equipment sales to China, which are projected to reduce fiscal 2025 revenues by $400 million [6]. - The company also noted a slowdown in the IoT, Communications, Automotive, Power, and Sensors (ICAPS) segment, which could impact overall performance [7]. - The Zacks Consensus Estimate for fiscal 2025 indicates single-digit growth in revenues and EPS, with year-over-year growth of 6% and 8.21%, respectively [8]. Group 2: Lam Research (LRCX) - LRCX is recognized for its etch and deposition technology, essential for HBM and advanced packaging technologies that support AI workloads [9]. - In 2024, LRCX's shipments for gate-all-around nodes and advanced packaging exceeded $1 billion, with expectations to triple to over $3 billion by 2025 [11]. - The company reported revenues of $4.72 billion in the third quarter of fiscal 2025, reflecting a 24.5% year-over-year increase, and EPS of $1.04, a 33.3% increase [12]. - The Zacks Consensus Estimate for fiscal 2025 suggests strong growth, with year-over-year increases in revenues and EPS of 21.8% and 32.8%, respectively [13]. Group 3: Stock Performance and Valuation - Year to date, AMAT and LRCX shares have declined by 25.5% and 19.2%, respectively [13]. - AMAT and LRCX are trading at forward 12-month price to sales multiples of 4.24X and 5.14X, both below the semiconductor industry's average of 6.92X [14]. - LRCX is viewed as having a stronger growth profile due to its advanced technology for AI chip manufacturing, while AMAT's growth outlook is more uncertain [17].

Group 1 - Lam Research (LRCX) is currently outperforming the Computer and Technology sector with a year-to-date return of approximately 2.3%, while the sector has an average return of -8% [4] - The Zacks Rank for Lam Research is 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 7.5% over the past 90 days [3] - Lam Research belongs to the Electronics - Semiconductors industry, which has seen a decline of about 13.1% year-to-date, further highlighting LRCX's strong performance relative to its peers [5] Group 2 - The Computer and Technology sector includes 608 individual stocks and currently holds a Zacks Sector Rank of 8, reflecting the average performance of stocks within this group [2] - Another stock in the sector, Daikin Industries (DKILY), has also outperformed with a year-to-date return of 3.2% and a Zacks Rank of 2 (Buy) [4][5] - The Electronics - Miscellaneous Products industry, to which Daikin Industries belongs, is ranked 143 and has experienced a decline of -6.2% year-to-date [6]

Core Insights - The article emphasizes the importance of earnings acceleration in driving stock prices higher, indicating that stocks often experience an increase in earnings before their prices rise [1][3]. Earnings Acceleration Definition - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), specifically when the quarter-over-quarter earnings growth rate increases over time [2]. Importance of Earnings Acceleration - Unlike earnings growth, which may already be reflected in stock prices, earnings acceleration can identify stocks that have not yet attracted investor attention, leading to potential price rallies [3]. Earnings Growth Trends - An increasing percentage of earnings growth suggests a fundamentally sound company, while a stable or decreasing percentage may indicate consolidation or a slowdown, potentially dragging prices down [4]. Screening Parameters - The article outlines specific screening parameters to identify stocks with earnings acceleration, including: - Last two quarter-over-quarter EPS growth rates exceeding previous periods [5]. - Projected EPS growth rates for the upcoming quarter expected to exceed prior periods [6][7]. Top Stocks Identified - The screening process narrowed down to four stocks, with three highlighted: - **Lam Research Corporation (LRCX)**: Expected earnings growth rate of 32.8% for the current year, Zacks Rank 2 (Buy) [8]. - **Unity Software Inc. (U)**: Anticipated earnings growth rate of 34.5% for the current year, Zacks Rank 1 (Strong Buy) [10]. - **Gulfport Energy Corporation (GPOR)**: Expected earnings growth rate of 85.3% for the current year, Zacks Rank 1 (Strong Buy) [11].

Technical Analysis - Lam Research (LRCX) has reached an important support level and surpassed resistance at the 50-day moving average, indicating a potential short-term bullish trend [1] - The 50-day simple moving average is a key technical indicator for determining support or resistance levels [1] Stock Performance - LRCX shares have increased by 26.1% over the past four weeks, suggesting strong upward momentum [2] - The company holds a Zacks Rank 2 (Buy), indicating potential for continued stock price appreciation [2] Earnings Estimates - There have been 10 positive earnings estimate revisions for LRCX for the current fiscal year, with no downward revisions, leading to an upward shift in the consensus estimate [2] - The positive earnings estimate revisions strengthen the bullish outlook for LRCX [2] Investment Consideration - Investors are encouraged to consider adding LRCX to their watchlist due to the favorable technical indicators and positive earnings revisions [3]

Shares of Lam Research (LRCX) have gained 10% over the past four weeks to close the last trading session at $71.73, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $90.93 indicates a potential upside of 26.8%.The mean estimate comprises 27 short-term price targets with a standard deviation of $12.03. While the lowest estimate of $70 indicates a 2.4% decline from the current pric ...

Core Insights - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities with high potential for market outperformance over the next 30 days [2][3][4][5][6] Zacks Style Scores Overview - Each stock is rated from A to F based on its value, growth, and momentum, with A being the highest score indicating a better chance of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Cash Flow [3] - The Growth Score assesses a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] - The Momentum Score identifies stocks with favorable price trends and earnings outlooks, utilizing recent price changes and earnings estimate revisions [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 that also possess Style Scores of A or B for optimal investment potential [9][10] Company Spotlight: Lam Research Corporation - Lam Research Corporation, based in Fremont, CA, provides wafer fabrication equipment and services to the semiconductor industry and related markets [11] - The company holds a Zacks Rank of 2 (Buy) and has a VGM Score of B, indicating strong investment potential [11] - Lam Research has a Momentum Style Score of A, with shares increasing by 10% over the past four weeks, and analysts have revised earnings estimates upwards for fiscal 2025 [12]

Share prices of Lam Research (LRCX 1.23%) shot up more than 6% following the April 23 release of its fiscal 2025 third-quarter earnings (for the three months ended March 30), driven by the company's stronger-than-expected results and guidance that point toward strong demand for its semiconductor manufacturing equipment.So far this year, the stock has been under pressure due to its reliance on China for a large chunk of sales and the turmoil caused by the ongoing tariff war. However, Lam's results and outloo ...