13 Best Semiconductor Equipment Stocks to Buy According to Hedge Funds 

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1. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders In Q2 2025: 85

Lam Research Corporation (NASDAQ:LRCX) primarily makes and sells etching and deposition machines. Its deposition equipment also enables atomic-level deposition, which is one of the most advanced technologies of its kind. Lam Research Corporation (NASDAQ:LRCX) is one of the largest semiconductor manufacturing equipment firms of its kind that is traded on US markets.

Lam Research Corporation (NASDAQ:LRCX) is one of the top-performing semiconductor equipment stocks right now as its shares have gained 119% year-to-date. The firm is also a dividend-paying stock, and it declared a quarterly dividend of $0.26 per share last week on Thursday. In October, Lam Research Corporation (NASDAQ:LRCX) also forecast fiscal second-quarter revenue of $5.2 billion, which overshot LSEG estimates of $4.81 billion by a wide margin.

CNBC’s Jim Cramer discussed Lam Research Corporation (NASDAQ:LRCX) with Harvard Business School recently. Here is what he said:

“Right now, I know this is going to be really, I, it’s going to be boring, but I would still go with storage. That’s the problem… we just don’t have enough storage, so anybody who has it, because that, I’m talking about storage type derivative, like Lam Research, like KLA, like Applied Materials.”

While we acknowledge the potential of LRCX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LRCX and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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