Jim Cramer on Lam Research: “Lam Is My Personal Favorite, It’s Incredibly Well-Run”

Lam Research Corporation (NASDAQ:LRCX) is one of the stocks Jim Cramer talked about, along with the memory shortage. Cramer highlighted the reason for the stock’s tremendous rally in 2025 and to date in 2026, as he remarked:

Again, as with Taiwan Semi, this isn’t about memory chips. In this case, it’s CPUs that Intel can’t make enough of. That means more business for the capital equipment makers, especially Lam Research. CPUs are their bread and butter. Lam’s also one of the leading providers of the type of equipment used to make memory chips. So they’ll be one of the first companies to benefit as the memory and data storage companies look to boost their productions, which I know they want to. That’s why this stock rallied 137% last year before tackling on another 39% gain in January. Now, some of these semiconductor capital equipment companies will be reporting earnings in the next few days… While I expect all these companies to report great numbers, the bar is now incredibly high, given how much their stocks have run. So I can’t say for sure how their stocks will react as they are what I say coming in hot.

But that brings me to a very smart analyst note from Lynx Equity… that came into my inbox. It was published this morning. The Lynx analyst says that a beat-and-raise result is already baked into Lam Research’s stock. I agree with that. It’s hard to argue with. But the analyst is still very bullish on Lam, and that’s because they expect much better numbers in 2027 than the rest of Wall Street’s looking for. I agree with that. If management gives a qualitative view of wafer fab equipment into 2027, and we hope that not everybody is starting to build out at once, the Lynx analyst argues that the stock could soar. Otherwise, he expects it to sell off because it’s up 39% over the past few weeks. If Lam Research does sell off, though, that may be the real opportunity. I would be a buyer. I believe in this group long term, and Lam is my personal favorite. It’s incredibly well-run.

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Lam Research Corporation (NASDAQ:LRCX) develops equipment for depositing, etching, and cleaning semiconductor materials. It includes systems for tungsten and copper metallization, plasma and atomic-layer deposition, dielectric and conductor etch, and wafer cleaning.

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