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Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lam Research. The Motley Fool has a disclosure policy. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

FREMONT, Calif., Jan. 6, 2025 /PRNewswire/ -- Lam Research Corp. (NASDAQ: LRCX) today announced that the company will host its quarterly financial conference call and webcast on Wednesday, January 29, 2025, beginning at 2:00 p.m. Pacific Standard Time (5:00 p.m. Eastern Standard Time). Webcast: To access the webcast, visit the Investors section of Lam's website athttp://www.lamresearch.com and click on the Investors/InvestorsOverview/Events & Presentations section to view the details. Replay Info ...

AI Infrastructure Spending - Spending on AI infrastructure is expected to reach $227 billion in 2025, with a projected increase to $749 billion by 2028 [1][2] - The growth in AI spending is driven by the increasing adoption of AI services across various sectors, including cloud computing and memory markets [2][11] Microsoft - Microsoft's AI business is on track to surpass an annual revenue run rate of $10 billion, making it the fastest-growing business in the company's history [4] - The Intelligent Cloud segment saw a 20% year-over-year revenue increase to $24.1 billion in Q1 FY2025, with Azure cloud service revenue growing 23% [4] - AI contributed 12 percentage points to Azure's growth, indicating significant influence on Microsoft's cloud business [5] - Microsoft Azure's market share in cloud infrastructure increased to 20%, slightly outpacing the overall cloud infrastructure spending growth of 23% [6] - Analysts expect Microsoft's earnings to grow 10% in FY2025 to $13.04 per share, with long-term growth potential driven by a projected $2 trillion global cloud spending by 2030 [7][8] - Microsoft's stock is trading at 35 times earnings, which is relatively attractive compared to the Nasdaq-100 index's earnings multiple of 33 [9] Lam Research - Lam Research's stock underperformed in the past year, losing 2%, but is expected to rebound in 2025 due to a recovery in the memory market [10] - Capital spending on DRAM is forecasted to increase by 25% in 2025, with NAND flash storage spending expected to rise by 10% [11] - The company derives 35% of its revenue from selling semiconductor manufacturing equipment to memory makers, positioning it to benefit from the memory market recovery [13] - Lam's Q1 FY2025 revenue increased 20% year-over-year to $4.17 billion, with earnings per share rising 25% to $0.86 [14] - Analysts expect Lam's earnings to grow 17% in both the current and next fiscal years, following a 14% decline in revenue in FY2024 [14] - Lam's stock is trading at 24 times earnings, a discount to the Nasdaq-100 index's earnings multiple of 33, with a 12-month median price target of $95, indicating a potential 32% upside [15][16]

Company Performance - Lam Research's stock closed at $73.99, reflecting a +0.22% change from the previous trading day, outperforming the S&P 500's daily loss of 0.04% [1] - The stock has increased by 3.16% over the past month, which is below the Computer and Technology sector's gain of 5.93% but above the S&P 500's gain of 1.05% [1] Upcoming Earnings - Lam Research is expected to report an EPS of $0.87, indicating a 16% increase from the same quarter last year [2] - The consensus estimate for revenue is projected at $4.31 billion, reflecting a 14.59% rise from the equivalent quarter last year [2] Full-Year Estimates - The full-year Zacks Consensus Estimates predict earnings of $3.50 per share and revenue of $17.19 billion, representing year-over-year changes of +17.06% and +15.35%, respectively [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for Lam Research are important as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [4] Zacks Rank and Valuation - Lam Research currently holds a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate having decreased by 0.68% over the last 30 days [6] - The company is trading at a Forward P/E ratio of 21.12, which is a discount compared to the industry's average Forward P/E of 39.57 [7] PEG Ratio - Lam Research has a PEG ratio of 1.36, compared to the Electronics - Semiconductors industry's average PEG ratio of 2.16 [8] Industry Ranking - The Electronics - Semiconductors industry ranks in the bottom 43% of all industries, with a current Zacks Industry Rank of 145 [9]

Group 1 - Lam Research's shares declined by 4.7% amid a broader market rebound, indicating a potential disconnect with overall market trends [1] - The decline was triggered by a disappointing outlook from Micron Technology, a key customer, which may present a buying opportunity for investors in Lam Research [2][3] - Micron's fiscal second-quarter guidance was below expectations, particularly due to weakness in consumer-oriented PC and smartphone segments, impacting Lam Research negatively [3][4] Group 2 - Micron highlighted a significant weakness in NAND flash memory while noting strength in the DRAM market, which is relevant to Lam Research's business focus [4] - Micron's decision to reduce capital expenditures for NAND manufacturing and the need for a slowdown in NAND investments across the industry could further affect Lam Research, as it is a leader in NAND equipment [5] - Despite the current challenges, Lam Research has diversified its revenue sources, with only 11% coming from NAND flash memory, while DRAM and logic markets contribute significantly [6] Group 3 - Lam Research's near-term outlook may appear unimpressive, but its results are not expected to decline significantly, and the stock is trading at a reasonable valuation of 22 times earnings [6][7]

Core Viewpoint - Lam Research Corporation (LRCX) has recently surpassed its 50-day moving average, indicating a potential positive shift in market sentiment and optimism regarding its positioning in the semiconductor recovery cycle [1][3]. Financial Performance - In the first quarter of fiscal 2025, Lam Research reported a revenue increase of 19.7% year-over-year, reaching $4.17 billion, with non-GAAP earnings per share (EPS) rising by 28.4% to 86 cents, exceeding analyst expectations [9]. - The Zacks Consensus Estimate anticipates continued revenue growth of 15.6% in fiscal 2025 and an additional 8.5% in fiscal 2026, with non-GAAP EPS expected to grow by double digits [10]. Market Positioning - Lam Research is well-positioned to benefit from the anticipated rebound in the memory and logic markets, particularly in DRAM and NAND technologies, which are crucial for AI, high-performance computing (HPC), and data center applications [12]. - The company's leadership in gate-all-around (GAA) transistors and high-bandwidth memory (HBM) solutions aligns with the evolving needs of the semiconductor industry, ensuring a steady stream of opportunities [13][14]. Innovation and Competitive Advantage - Lam Research's Semiverse platform enhances production efficiency through virtual simulations, providing a competitive edge in the semiconductor manufacturing landscape [15][16]. - The company's advancements in HBM and etch technologies position it as a critical partner for chipmakers focused on next-generation solutions, particularly as AI adoption accelerates [16]. Valuation - Lam Research currently trades at a forward 12-month price-to-earnings (P/E) ratio of 20.81, significantly lower than the industry average of 34.32, suggesting potential undervaluation given its growth prospects [17][19]. Near-Term Challenges - Approximately 37% of Lam Research's revenues were generated in China, exposing the company to risks from potential U.S.-China trade tensions and restrictions on technology exports [21]. - The cyclical nature of the semiconductor market, along with NAND pricing pressures and cautious capital spending, poses risks to revenue consistency in the near term [22]. Conclusion - Despite near-term challenges, Lam Research's breakout above its 50-day moving average, strong financial performance, and positioning in high-growth markets provide a compelling reason to hold the stock [24][25].

It’s been a strong year for many stocks. But now that we’re in December, many investors are looking to diversify and rebalance their portfolios. This is a simple strategy in which you take some profits from your winners and move them to stocks that haven’t done as well in 2024. Selling stocks at overbought levels doesn’t have to mean your opinion of the company has changed. But as the old saw goes, nobody got broke taking a profit. And if a stock is overvalued, trimming your position can protect you from d ...

Artificial intelligence (AI)-inspired stock splits were a big theme in 2024 -- and it may stay that way in the new year, based on the forecast of two analysts.For the better part of two years, the bulls have been running wild on Wall Street. While these gains can prominently be traced to the rise of artificial intelligence (AI), AI isn't the only catalyst responsible for sending the broad-market indexes to fresh highs.The outsized gains in the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite in 2 ...

Lam Research Corporation (NASDAQ:LRCX) Barclays 22nd Annual Global Technology Conference December 11, 2024 11:40 AM ET Company Participants Tom O'Malley - CFO Conference Call Participants Doug Bettinger - Barclays Doug Bettinger Safe harbor to keep my attorneys happy. I don't plan to say anything that I haven't said on public record before, so don't be disappointed with that. But today's discussion may include forward-looking statements that are subject to risks and uncertainties. Actual results, results ma ...