5 Best AI Chip Stocks to Buy According to Hedge Funds

4. Lam Research Corp. (NASDAQ:LRCX)

Lam Research Corp. (NASDAQ:LRCX) is one of the 10 best AI chip stocks to buy according to hedge funds.

As of the April 3 closing, consensus sentiment for Lam Research Corp. (NASDAQ:LRCX) was strongly bullish. The stock received coverage from 28 analysts, 24 of whom assigned Buy ratings and 4 gave Hold calls. With no Sell rating, it has a projected median 1-year price target of $283.81, which results in an upside potential of almost 30%.

On April 2, Stephan Lingnau from Erste Group downgraded Lam Research Corp. (NASDAQ:LRCX) to Hold from Buy. The company’s reliance on helium for tool production is one of the supply chain risks for Lam. According to Lingnau, there is a greater chance that gross and operational margins would decline.

On March 10, Tom O’Malley from Barclays increased the price target on Lam Research Corp. (NASDAQ:LRCX) from $250 to $255. The analyst maintained an Equal Weight rating for the stock, which leads to a revised upside potential of almost 17% at the prevailing level. O’ Malley increased estimates for the wafer fab equipment companies, quoting a strong investment environment.

Lam Research Corp. (NASDAQ:LRCX) is a manufacturer and global supplier of semiconductor processing equipment that is useful for the fabrication of integrated circuits. The company specializes in thin film deposition, wafer cleaning, plasma etch, and photoresist strip. It also offers products like Da Vinci, DV-Prime, and EOS for wafer cleaning applications.