Core Insights - The article highlights the author's extensive experience in both equity and real estate markets, focusing on identifying long-only investment opportunities that provide safe and growing dividends [1] - The author has successfully sourced over $100 million in commercial real estate investments while serving as an Analyst and Acquisitions Director at a private equity real estate investment firm [1] - The emphasis on correlation across asset classes and sectors, along with a background in economics, enables the author to provide timely analyses and strategies for investors [1] Company and Industry Summary - The author has a beneficial long position in the shares of LRCX, indicating a positive outlook on the company's performance [1] - The author's educational background includes a degree in Economics and a minor in Applied Mathematics, which supports their analytical capabilities in the investment field [1] - The decision to contribute to Seeking Alpha reflects a commitment to sharing insights and strategies for wealth creation in evolving market conditions [1]

Core Insights - Lam Research Corp. has been recognized as one of the 2025 World's Most Ethical Companies by Ethisphere, marking the third consecutive year for this honor [1][3] - The recognition highlights Lam's commitment to ethical business practices, emphasizing core values such as honesty, integrity, respect, and transparency [3][4] - Ethisphere evaluated over 240 criteria related to ethics and compliance, governance, and social impact to determine the honorees, with 136 companies recognized across 19 countries and 44 industries this year [3] Company Overview - Lam Research is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry, playing a crucial role in the production of advanced chips [5] - The company is headquartered in Fremont, California, and is a FORTUNE 500® company with operations worldwide [5] Ethisphere Overview - Ethisphere is recognized as a global leader in defining and advancing ethical business practices, providing assessments and recognition programs to strengthen corporate integrity [6]

Core Viewpoint - Semiconductor equipment stocks, including ASML Holdings, KLA, and Lam Research, experienced significant declines due to fears of a tariff-induced recession and increasing trade tensions with China [1][4][6] Group 1: Market Reactions - ASML Holdings, KLA, and Lam Research saw their shares drop by 6.71%, 4.63%, and 6.58% respectively, reflecting a broader sell-off in semiconductor stocks [1] - The market is reacting negatively to comments from President Trump regarding potential recessions linked to tariffs, which has impacted economically sensitive stocks, particularly in the tech sector [4][6] Group 2: Trade Tensions and China - Tariffs on China complicate the semiconductor market as China is a major buyer of chips and is investing heavily in domestic semiconductor production [2][7] - China's development of alternatives to extreme ultraviolet (EUV) technology poses a threat to ASML, which currently holds a monopoly in this area [3][11] Group 3: Technological Developments - China has reportedly increased its use of domestic chipmaking tools to 13.6% last year, indicating progress in its semiconductor capabilities [10] - The introduction of laser-induced discharge plasma (LDP) technology in China could signal advancements in producing leading-edge semiconductors, although it remains uncertain if it can match EUV technology [11][14] Group 4: Historical Context and Future Outlook - Historical trends show that semiconductor stocks have previously rebounded after similar sell-offs during trade wars, suggesting potential long-term buying opportunities [13][16] - Despite current market conditions, megatrends such as cloud computing, remote work, and AI are expected to support growth in chip and semiconductor equipment stocks moving forward [15][16]

Today I want to explain why I rate Lam Research ( LRCX ) as a BUY, based on my belief that they will be one of the main players in the coming technological boom, thanks to their leading position asI am a value dividend investor with an eye for heavy long term compounding. Whenever I see a company that is heavily undervalued with large upside, I always jump in to take my share of the riches. I have been investing since I can remember, specialising in long term growth dividend companies, so that one day I wou ...

Company Performance - Lam Research (LRCX) ended the latest trading session at $76.77, reflecting a +0.79% adjustment from the previous day's close, which lagged behind the S&P 500's gain of 1.59% [1] - Over the past month, shares of Lam Research have decreased by 5.65%, underperforming the Computer and Technology sector's loss of 3.43% and the S&P 500's loss of 2.42% [1] Earnings Projections - The upcoming earnings release for Lam Research is projected to show earnings per share (EPS) of $1, representing a 28.21% increase from the same quarter last year [2] - Revenue is expected to reach $4.65 billion, indicating a 22.62% increase compared to the same quarter of the previous year [2] Full-Year Estimates - The full-year Zacks Consensus Estimates for Lam Research forecast earnings of $3.73 per share and revenue of $17.72 billion, which would signify year-over-year changes of +24.75% and +18.91%, respectively [3] - Recent changes to analyst estimates for Lam Research reflect shifting business dynamics, with positive alterations indicating analyst optimism regarding the company's profitability [3] Valuation Metrics - Lam Research currently has a Forward P/E ratio of 20.43, which is lower than the industry average of 25.22, suggesting that Lam Research is trading at a discount compared to its peers [6] - The company has a PEG ratio of 1.25, compared to the average PEG ratio of 1.63 for the Electronics - Semiconductors industry, indicating a favorable valuation relative to expected earnings growth [7] Industry Ranking - The Electronics - Semiconductors industry, which includes Lam Research, has a Zacks Industry Rank of 134, placing it in the bottom 47% of over 250 industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Lam Research reported strong second-quarter fiscal 2025 results, with both earnings and revenues exceeding estimates, driven by robust demand in DRAM and Foundry Logic, alongside disciplined cost management [2][3]. Financial Performance - Non-GAAP earnings for Q2 fiscal 2025 were 91 cents per share, beating the Zacks Consensus Estimate by 4.6% and reflecting a 7% year-over-year increase [2]. - Revenues for the quarter reached $4.38 billion, surpassing the consensus mark by 1.6% and increasing 5% from $4.17 billion in the same quarter last year [3]. Segment Analysis - System revenues accounted for $2.63 billion (60% of total revenues), up 9.7% from the previous quarter and 14.2% year-over-year, although it missed the consensus estimate of $2.69 billion [4]. - Customer Support Business Group revenues were $1.75 billion (40% of total revenues), down 1.4% from the previous quarter but up 20% year-over-year, beating the consensus estimate of $1.61 billion [4]. Geographic Revenue Breakdown - In Q2 fiscal 2025, China, Korea, and Taiwan contributed 31%, 25%, and 17% of total revenues, respectively, while Japan, Southeast Asia, the United States, and Europe accounted for 8%, 7%, 9%, and 3% [5]. Operating Metrics - The non-GAAP gross margin was 47.5%, a contraction of 70 basis points from the previous quarter, while non-GAAP operating expenses rose to $735 million, up 1.8% [6]. - The non-GAAP operating margin was 30.7%, down 20 basis points from the previous quarter [6]. Balance Sheet and Cash Flow - As of December 29, 2024, cash and cash equivalents were $5.67 billion, down from $6.08 billion as of September 29, 2024 [7]. - Cash flow from operating activities was $742 million for the quarter, a decrease from $1.57 billion in the previous quarter [7]. - The company paid dividends of $297.6 million and repurchased shares worth $650 million during the reported quarter [7]. Future Guidance - For Q3 fiscal 2025, Lam Research expects revenues to be approximately $4.65 billion (+/- $300 million), with a projected non-GAAP gross margin of 48% (+/-1%) and an operating margin of 32% [8][9]. Estimate Trends - There has been an upward trend in estimates, with the consensus estimate shifting by 14.58% recently [10]. VGM Scores - Lam Research currently holds an average Growth Score of C, a Momentum Score of B, and a Value Score of C, resulting in an aggregate VGM Score of C [11]. Overall Outlook - Estimates for Lam Research have been trending upward, indicating a promising outlook, with a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [12].

A great way to find promising growth stocks is checking what the smartest investors are buying. Billionaires are interested in preserving and growing their wealth, and they have the resources to conduct exhaustive research in companies that might be out of reach for the average investor.Here are two recent billionaire picks that could be smart buys for 2025 and beyond.1. Lam ResearchArtificial intelligence (AI) is transforming business operations and driving significant growth for the semiconductor industry ...

Core Viewpoint - Lam Research Corporation (LRCX) has shown a significant recovery in 2025, with a year-to-date stock increase of 15.5%, outperforming key semiconductor peers despite a broader industry decline of 6% [1][3]. Financial Performance - For the December 2024 quarter, Lam Research reported revenues of $4.38 billion, a 16.4% increase year-over-year, and earnings per share (EPS) of 91 cents, exceeding estimates by 4 cents [4]. - The company's gross margin for the quarter was 47.5%, reflecting a 70-basis point sequential decline but remaining above management's guidance midpoint of 47% [5]. - Lam Research expects revenues of $4.65 billion (+/- $300 million) for the March quarter, indicating continued stability in its core business [5]. Market Positioning and Growth Drivers - The company is benefiting from the rapid expansion of AI-driven semiconductor demand, particularly in high-bandwidth memory (HBM) and advanced packaging technologies [6]. - Shipments for gate-all-around nodes and advanced packaging exceeded $1 billion in 2024, with expectations to surpass $3 billion in 2025 [7]. - Lam Research's strategic investments in research and development, including the Cryo 3.0 technology and Aether dry-resist solution, are yielding positive results [9]. Strategic Initiatives - The expansion of Lam Research's manufacturing footprint in Asia has improved cost efficiencies and responsiveness to customer demand, contributing to a 160-basis point operating margin expansion in 2024 [10]. - The company is well-positioned to benefit from a rebound in NAND spending, with patented solutions expected to drive several hundred million dollars in NAND-related revenues in 2025 [11]. Valuation and Technical Indicators - Lam Research trades at a forward price-to-earnings (P/E) ratio of 22.22, lower than the industry's 27.53, indicating a reasonable valuation relative to its long-term growth potential [13]. - The stock is currently trading above the 50-day and 100-day moving averages, signaling a bullish trend in the near term [16]. Risks and Challenges - China revenues accounted for 31% of total revenues in Q2 fiscal 2025, down from 37% in the prior quarter, with $700 million in expected revenues from restricted Chinese customers not materializing in 2025 [19]. - Declining demand for mature-node semiconductor equipment is a concern, with foundry revenues decreasing from 41% to 35% of system sales [20]. - A slowdown in analog and microcontroller semiconductor investments, particularly outside China, may limit growth in Lam Research's foundry and logic business [21].

Company Overview - Lam Research Corporation held its Investor Day 2025 Conference on February 19, 2025, at 9:00 AM ET, featuring key executives including the President and CEO Timothy Archer and CFO Douglas Bettinger [1]. Event Highlights - The event had a strong turnout despite concerns about attendance due to competing events like the Super Bowl and ski weekend in New York, indicating significant interest in Lam Research's updates [2]. Financial Disclosures - The company will present forward-looking statements that are subject to risks and uncertainties, as outlined in their SEC public filings, emphasizing the importance of understanding these disclosures [3]. - Financial disclosures will include non-GAAP statements, with reconciliations provided between GAAP and non-GAAP figures [4].

wm TWO CRITICAL ENABLERS. ONE PROVEN LEADER. INVESTOR DAY 2025 NEW YORK CITY Cautionary statement regarding forward-looking statements This presentation and the accompanying discussion contain "forward-looking statements" under U.S. securities laws. Forward- looking statements include any statements that are not statements of historical fact. Examples of forward-looking statements include, but are not limited to: (1) anticipated business, balance sheet, cash flow and financial measures and results and relat ...