5 Stocks That May Be Splitting Soon

3. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 56

Lam Research Corporation (NASDAQ:LRCX) is a leading manufacturer of semiconductor processing equipment. The company’s products are used in the fabrication of integrated circuits. The company has split its stock two times in history and its most recent stock split was a 3-for-1 split in March 2000. The company’s share price has skyrocketed from $45 at the time of the split to $433, as of November 9. Lam Research Corporation (NASDAQ:LRCX) is due for a stock split and ranks among the stocks that may split soon.

On October 19, Lam Research Corporation (NASDAQ:LRCX) posted earnings for the fiscal first quarter of 2023. The company reported an EPS of $10.42 and outperformed estimates by $0.88. The company generated a revenue of $5.07 billion, up 17.88% year over year, and beat expectations by $165.20 million. Shortly after the company’s earnings release, Jefferies analyst Mark Lipacis updated his price target on Lam Research Corporation (NASDAQ:LRCX) to $525 from $535 and maintained a Buy rating on the shares.

At the close of Q2 2022, 56 hedge funds were long Lam Research Corporation (NASDAQ:LRCX) and disclosed stakes of $2.66 billion in the company. As of September 30, Fisher Asset Management is the largest shareholder in the company and has a position worth $830.3 million.

Here is what Artisan Partners had to say about Lam Research Corporation (NYSE:LRCX) in its second-quarter 2022 investor letter:

“Lam is one of the world’s largest suppliers of semiconductor wafer fabrication equipment (WFE). Manufacturing semiconductors is incredibly complex with tolerances measured in nanometers. Consistent improvements in technology are necessary for manufacturers to improve the cost, functionality and volume of semiconductors. WFE manufacturers such as Lam provide the necessary machines and technology. The WFE industry is highly consolidated with only five global players holding more than two thirds of the market. Because of the value-added nature of the equipment and services, the industry is highly profitable with margins and returns on capital that most CEOs can only dream of.”