Lam Research Set to Benefit from Micron's Increased Capex
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 29 2024
0mins
Should l Buy LRCX?
Source: SeekingAlpha
Lam Research Corp's stock rose by 5.00% as it crossed above the 20-day SMA, reflecting positive market conditions.
The catalyst for this movement is Micron Technology's strong Q2 results, where it reported a revenue surge to $23.9 billion, nearly tripling year-over-year, driven by AI demand. Micron's increased capital expenditures guidance, now exceeding $25 billion, is expected to positively impact Lam Research, which derives a significant portion of its revenue from memory chipmaking equipment. Analysts anticipate a 28% increase in Lam Research's earnings per share this fiscal year, further solidifying its growth outlook.
This strong performance from Micron not only highlights the demand for memory products but also positions Lam Research favorably in the semiconductor equipment market, suggesting that the company is well-poised for future growth.
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Analyst Views on LRCX
Wall Street analysts forecast LRCX stock price to fall
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 224.350
Low
142.00
Averages
192.50
High
265.00
Current: 224.350
Low
142.00
Averages
192.50
High
265.00
About LRCX
Lam Research Corporation is a global supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Its products and services are designed to help its customers build devices that are used in a variety of electronic products, including mobile phones, personal computers, cloud and enterprise servers, wearables, automotive vehicles and data storage devices. Its product families include ALTUS, SABRE, SPEED, Striker, VECTOR, Flex, Vantex, Kiyo, Versys Metal, Syndion, Coronus, and DV-Prime, Da Vinci, EOS, and SP Series. Its customer base includes semiconductor memory, foundries, and integrated device manufacturers that make products such as non-volatile memory, dynamic random-access memory, and logic devices. It offers services in areas like nanoscale manufacturing enablement, chemistry, plasma and fluidics, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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