Lam Research Upgraded to Buy, WFE Spend Rebound Expected in 2024
November 21, 2023
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Lam Research ($NASDAQ:LRCX) Corporation has recently been upgraded from a “Hold” to a “Buy” rating, with the expectation of a rebound in Wafer Fabrication Equipment (WFE) spending occurring by 2024. Lam Research is a leading supplier of innovative wafer fabrication solutions used in chip manufacturing. The upgrade to a “Buy” rating was based on the expectation that WFE spending will rebound in 2024. This would be due to a combination of a recovery in global demand for semiconductors and the increased need for advanced process technologies for next-generation devices. Lam Research’s leading position in the industry provides it with a competitive edge in terms of delivering solutions that meet customer needs.
The company’s strong financials and cash flow make it well-positioned to capitalize on the expected rebound in WFE spending. Investors should take advantage of the “Buy” rating and Lam Research’s ability to capitalize on the expected WFE spending rebound in 2024. The company’s strong financials, diverse portfolio of products and services, and competitive position make it a sound investment for those looking to gain exposure to the semiconductor industry.
Share Price
On Monday, LAM RESEARCH stock opened at $697.3 and closed at $719.2, up by 2.7% from prior closing price of 700.3. This jump in stock prices was due to the recent upgrade to “Buy” from “Hold” by analysts from Susquehanna. This upgrade was largely based on the expected rebound in WFE (wafer fab equipment) spending in 2024. This optimistic outlook has led to a surge in investor confidence in LAM RESEARCH, as the company is a key player in the WFE market and stands to benefit from increased demand. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lam Research. More…
| Total Revenues | Net Income | Net Margin |
| 15.84k | 3.97k | 25.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lam Research. More…
| Operations | Investing | Financing |
| 4.94k | -481.44 | -3.85k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lam Research. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 18.54k | 10.49k | 60.93 |
Key Ratios Snapshot
Some of the financial key ratios for Lam Research are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.7% | 13.6% | 29.5% |
| FCF Margin | ROE | ROA |
| 28.4% | 35.9% | 15.7% |
Analysis
Our analysis of LAM RESEARCH‘s financials has resulted in them being classified as a ‘rhino’ company. This type of company is characterized by moderate revenue or earnings growth. We believe that this type of company may be attractive to certain types of investors. LAM RESEARCH has an impressive asset portfolio, a steady dividend yield, moderate growth and above-average profitability. On top of these strengths, they also have a high health score of 10/10 with regard to their cash flows and debt, indicating that the company is well-equipped to sustain future operations in times of crisis. More…
Peers
Lam Research Corp is a leading company in the semiconductor industry. Its main competitors are Applied Materials Inc, ASML Holding NV, and Teradyne Inc. While all three companies are leaders in the industry, each has its own strengths and weaknesses. Lam Research Corp has a strong history of innovation and is currently the market leader in semiconductor equipment. Applied Materials Inc is the largest company in the industry and has a diversified product portfolio. ASML Holding NV is the leading supplier of lithography systems and is considered to be the most technologically advanced company in the industry. Teradyne Inc is the largest provider of semiconductor testing equipment and has a strong focus on cost-effective solutions.
– Applied Materials Inc ($NASDAQ:AMAT)
Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the fabrication of semiconductor chips, flat panel displays, solar photovoltaic cells, flexible electronics and packaging. The company also provides equipment to manufacturing companies in the solar industry. The company is headquartered in Santa Clara, California.
As of 2022, the company has a market capitalization of 66.47 billion dollars and a return on equity of 41.67%. The company has a long history of profitability and has been a leader in the semiconductor equipment industry for many years. The company’s products are used in the manufacture of a wide variety of electronic devices and products, from personal computers and cell phones to solar panels and LED lights.
– ASML Holding NV ($LTS:0M42)
ASML Holding NV is a holding company that engages in the manufacture of chip-making equipment. The company has a market cap of 157.8 billion as of 2022 and a return on equity of 39.44%. ASML is a leading provider of lithography systems for the semiconductor industry, manufacturing complex machines that are used to print circuits on silicon wafers.
– Teradyne Inc ($NASDAQ:TER)
Teradyne Inc is a leading provider of automated test equipment and semiconductor packaging solutions. The company has a market cap of 11.41B as of 2022 and a return on equity of 35.51%. Teradyne’s products are used in a variety of industries, including telecommunications, networking, computing, and consumer electronics. The company’s products are used in the testing of digital, analog, and mixed-signal devices. Teradyne also provides semiconductor packaging solutions for a variety of applications.
Summary
Lam Research is a semiconductor company that provides wafer fabrication equipment and services. Analysts have recently upgraded their rating on the stock to a Buy, citing a projected rebound in worldwide wafer fabrication spending in 2024. This is expected to drive the company’s revenue growth, making it an attractive investment opportunity. Investors looking to benefit from the projected rebound should consider adding Lam Research to their portfolio.
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