Is LRCX a good stock to buy? We came across a bullish thesis on Lam Research Corporation on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on LRCX. Lam Research Corporation’s share was trading at $199.33 as of March 6th. LRCX’s trailing and forward P/E were 40.93 and 29.41, respectively according to Yahoo Finance.
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits in the United States and internationally. LRCX is emerging as a key beneficiary of the AI-driven semiconductor infrastructure buildout, presenting a compelling bullish case.
The company reported $5.34 billion in revenue, 49.7% gross margins, and $1.27 EPS for Q4 2025, all above expectations, and guided Q3 to $5.7 billion with margins holding at 49%, signaling durable growth. LRCX benefits from ten consecutive quarters of revenue growth, a record installed base exceeding 100,000 chambers, and strong process intensity per wafer that compounds with each node, independent of wafer demand.
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This positions Lam as a “toll booth” on the multi-year AI infrastructure expansion, capturing structural growth rather than cyclical fluctuations. Key customers like SK Hynix confirm supply constraints, with memory production unable to meet demand, accelerating upgrades and expansion projects that require Lam’s etch and deposition tools, particularly for advanced DRAM and NAND nodes. The company is strategically shifting away from mature China revenue toward high-value advanced-node business, which, although slightly lower margin, strengthens long-term positioning in cutting-edge AI infrastructure.
NAND demand is also accelerating as storage evolves into AI compute memory, creating a multi-billion-dollar opportunity beyond traditional logic and DRAM segments. At $252, LRCX trades at a P/E that reflects only partial recognition of these structural tailwinds.
With earnings growth driven by both wafer intensity and AI infrastructure expansion, Lam is poised for a structural repricing, offering upside to $300–350 if NAND greenfield expansion materializes and the AI cycle continues to accelerate. The combination of durable demand, process-driven moat, and accelerating AI adoption makes Lam Research a compelling growth-oriented investment with significant risk/reward skew.
Previously, we covered a bullish thesis on Lam Research Corporation (LRCX) by The Antifragile Investor in May 2025, highlighting its dominance in semiconductor equipment, high-margin service flywheel, and embedded tools across major fabs. LRCX’s stock has appreciated by approximately 140.76% since then. Nikhs shares a similar view but emphasizes AI-driven structural growth, wafer process intensity, and multi-year expansion opportunities that could reprice the stock.
Lam Research Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held LRCX at the end of the fourth quarter which was 93 in the previous quarter. While we acknowledge the risk and potential of LRCX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LRCX and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
