5 Semiconductor Stocks to Watch as Shortage Turns to Glut

3. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 59

YTD Loss as of July 15: 41.12%

Lam Research Corporation (NASDAQ:LRCX) supplies wafer fabrication equipment and services to the semiconductor industry. Amid oversupply fears and uncertainty, Lam Research Corporation (NASDAQ:LRCX) is becoming a relatively risky investment and is closely being watched by analysts and investors alike.

On July 15, Wells Fargo analyst Joe Quatrochi trimmed his price target on Lam Research Corporation (NASDAQ:LRCX) to $460 from $525 and reiterated an Equal Weight rating on the shares.

Over the past 3 months, 19 Wall Street analysts have given their 12-month price targets and ratings for Lam Research Corporation (NASDAQ:LRCX), of which 11 were Buy and 8 were Hold. The stock has a high price target of $837 and a low price target of $448. The stock’s average price target of roughly $592 implies a 38.57% upside from its closing price on July 15 which sits at $427.13.

As of March 31, Fisher Asset Management owns more than 1.9 million shares of Lam Research Corporation (NASDAQ:LRCX) and is the most prominent shareholder in the company with stakes worth $1.02 billion.

At the end of Q1 2022, 59 hedge funds held stakes in Lam Research Corporation (NASDAQ:LRCX) worth $3.48 billion. This is compared to 62 hedge funds in Q4 2021 with stakes worth $5.02 billion. The hedge fund sentiment for the stock is negative.

Here is what Vulcan Value Partners, an investment management firm, had to say about Lam Research Corporation (NASDAQ:LRCX) in its first-quarter 2022 investor letter:

“Lam Research Corp. designs and manufactures equipment used in the fabrication of semiconductors. Recent supply chain issues have negatively impacted the industry and has resulted in chip shortages. The industry is performing well, exceeding our expectations, and Lam Research’s fundamentals remain strong. The long-term secular drivers of demand and growth in the industry continue to be very powerful. Lam Research is experiencing increasing returns on capital, higher margins, and more stable results.”