Erste Group Resumes Coverage of Lam Research (LRCX) Stock with a Buy

Lam Research Corporation (NASDAQ:LRCX) is one of the 10 Best Semiconductor Stocks to Buy Right Now. On August 14, Erste Group resumed coverage of the company’s stock with a “Buy” rating. Lam Research Corporation (NASDAQ:LRCX) continues to benefit from the market growth for special machines for manufacturing semiconductor wafers. Furthermore, the analyst highlighted that it has a higher ROE and operating margin compared to its peer group.

For the quarter ended June 29, 2025, the company saw strong gross margins and record EPS. Lam Research Corporation (NASDAQ:LRCX) posted a US GAAP gross margin of 50.1%, a US GAAP operating income as a percentage of revenue of 33.7%, and a US GAAP diluted EPS of $1.35. Lam Research Corporation (NASDAQ:LRCX)’s gross margins surpassed 50% for the first time since the merger of Lam and Novellus. The company saw record foundry revenues thanks to the strong performance in both gate-all-around and mature node markets. The 3D scaling of device and advanced packaging architectures has been supporting growth in etch and deposition intensity.

Columbia Threadneedle Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“The portfolio’s holding in semiconductor equipment manufacturer Lam Research Corporation (NASDAQ:LRCX) contributed positively to performance as the stock moved higher during the first quarter. We are excited about the prospects for Lam Research, as the firm recently announced its ATLUS Halo, a tool that harnesses the capabilities of the metal molybdenum in the production of leading-edge semiconductors. Tungsten-based atomic layer deposition, pioneered by Lam, has been the predominant metallization technique for semiconductor chip deposition for over two decades, but the switch to molybdenum will help create memory and logic semiconductors for the future. Chip makers will need to shift beyond what is currently possible with tungsten, and this change will require many to update with Lam equipment, leading to increased sales. The fund also held a position in Japanese semiconductor company Renesas Electronics, which contributed to performance relative to the benchmark. The first quarter saw a large rotation to international stocks outperforming domestic securities, due primarily to concerns about U.S. tariffs, and the fund’s exposure to international firms like Renesas proved beneficial.”

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Disclosure: None. This article is originally published at Insider Monkey.