Core Insights - Lam Research's stock has nearly doubled this year, primarily due to strong growth in semiconductor equipment demand linked to AI chip production and advanced semiconductor technologies [1][5] - The company's quarterly results have shown significant improvement, with margins increasing and a positive outlook despite challenges from China's export restrictions [3][5] Financial Performance - The stock price surged by 97%, driven by a 26% increase in revenue, a 14% improvement in net margin, and a 34% increase in the P/E multiple [5] - Lam Research exceeded EPS and revenue predictions for Q4 2024, indicating strength heading into early 2025 [10] Market Outlook - The demand for AI and high-performance computing chips has led to substantial orders for Lam Research's equipment [10] - The company raised its 2025 Wafer Fab Equipment spending forecast to $105 billion [10] Challenges - New U.S. export restrictions on certain Chinese clients are expected to impact the revenue forecast for Q4 2025 [10]

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Growth & Income Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index continued its rally in the third quarter, ending the year-to-date returns at 13.7%. During this period, growth and momentum were key contributors to the market's performance. A significant portion of the market is currently tied to the single catalyst of AI deployment, which means that any weaknesses i ...

Core Viewpoint - Lam Research Corporation (NASDAQ:LRCX) is highlighted as a strong investment opportunity in the semiconductor sector, particularly in storage-related technologies, as emphasized by Jim Cramer during a discussion with Harvard Business School students [1]. Group 1: Company Overview - Lam Research designs and manufactures semiconductor processing equipment used in chip fabrication [2]. - The company is considered a leader in semiconductor capital equipment, with significant intellectual property in the field [2]. Group 2: Market Sentiment - Jim Cramer expressed a bullish outlook on Lam Research, stating it remains a buy despite a recent 65% increase in stock price [2]. - A recent downgrade of Lam Research was met with skepticism, indicating strong confidence in the company's market position [2]. Group 3: Investment Considerations - While Lam Research is viewed positively, there are suggestions that certain AI stocks may present greater upside potential with less downside risk [2].

Core Insights - Heartland Mid Cap Value Fund's portfolio increased by 1.63% in Q3 2025, underperforming the Russell Midcap® Value Index, which gained 6.18% [1] - Stock selection was identified as the main factor contributing to the fund's underperformance, as the market favored large- and mid-cap growth stocks driven by optimism around AI and rising electricity demand [1] - The focus on valuations during this period was noted to be potentially detrimental to performance [1] Company Highlights - Lam Research Corporation (NASDAQ:LRCX) was highlighted as a significant holding in the Heartland Mid Cap Value Fund, with a one-month return of 10.20% and a 52-week gain of 53.29% [2] - As of October 10, 2025, Lam Research's stock closed at $131.37 per share, with a market capitalization of $165.662 billion [2] - Lam Research is recognized as a leading supplier of semiconductor capital equipment, crucial for producing advanced integrated circuits in the chip industry [3]

Group 1 - KLA (KLAC) shows stronger revenue growth and profitability compared to Lam Research (LRCX), suggesting it may be a better investment option [1] - KLAC's revenue growth over the last 12 months was 23.9%, while LRCX's was 23.7% [7] - KLAC's average revenue growth over the last 3 years was 10.4%, surpassing LRCX's 3.5% [7] Group 2 - KLAC outperforms LRCX in profitability, with a last twelve months margin of 41.2% and a three-year average of 38.8% [7] - KLAC provides process control, defect inspection, metrology, and data analysis solutions for semiconductor production, while LRCX focuses on semiconductor processing equipment [3]

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].

Core Insights - Consistent earnings growth is important for company profitability, but earnings acceleration is more effective in driving stock prices higher [1] - Companies like The Kroger Co. (KR), Lam Research Corporation (LRCX), and Limbach Holdings, Inc. (LMB) are currently showing strong earnings acceleration [1] Earnings Acceleration Definition - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), specifically when quarter-over-quarter growth rates increase over time [2] Importance of Earnings Acceleration - Unlike earnings growth, which may already be priced into stocks, 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 indicates a fundamentally sound company, while stagnant or decelerating growth can signal consolidation or potential price declines [4] Screening Parameters for Earnings Acceleration - The screening process involves identifying stocks where the last two quarter-over-quarter EPS growth rates exceed previous periods' growth rates, with projected growth rates for the upcoming quarter also expected to exceed prior periods [5][6][7] Top Stocks Identified - The screening narrowed down to five stocks, with the top three being: - **Kroger**: A food and drug retailer in the U.S. with an expected earnings growth rate of 6% for the current year [8] - **Lam Research**: A company that designs and manufactures semiconductor processing equipment, with an expected earnings growth rate of 32.8% for the current year [10] - **Limbach Holdings**: A building systems solution company with an expected earnings growth rate of 12% over the next five years [11]