We recently published 12 Stocks Jim Cramer Recently Talked About In His “Idea-Driven” Market. Lam Research Corp (NASDAQ:LRCX) is one of the stocks Jim Cramer recently discussed.
Lam Research Corp (NASDAQ:LRCX) is an American semiconductor manufacturing equipment provider and one of the most important companies in the industry. Its machines cover several key chip manufacturing processes such as etching and deposition. Lam Research Corp (NASDAQ:LRCX)’s shares have gained 36% year-to-date, primarily due to Wall Street’s bullishness about AI demand that has also pushed NVIDIA’s shares to a record high. Cramer discussed the firm’s intellectual property and shared that he believes the stock can go much higher.
“I’m using this as a metaphor. People are reaching for things they feel have not kept pace with the big tech rally. This morning Morgan Stanley goes Applied Materials, they’re like KLA, but I want to focus on Lam Research because it’s only 25 times earnings. You’ll see the chart it’s not like it missed anything, it’s like boom. But it can still take out that August high of last year. This is an amazing company and what people don’t realize is that the intellectual property for our semis, has to do with the capital equipment companies. And the one that I think is the most sophisticated is Lam. So I actually don’t want people paying 25 times earnings.”
A technician operating an automated semiconductor processing machine with laser accuracy.
Cramer discussed Lam Research Corp (NASDAQ:LRCX) in detail after its latest earnings report in April. Here’s what he said:
“. . I thought Lam was great. I mean Lam was just chock-full of really good numbers.”
“You know Carl, a lot of people feel like we don’t make anything in this country. . .but Lam Research is probably the greatest semiconductor capital equipment company other than Taiwan Semi. And they reported a monster quarter. And Tim Archer, the CEO, came on Mad Money, he’s fantastic, Doug Bettinger . .the CFO. . .just fantastic. This was an amazing quarter, I know it’s up three, it’s gonna go up more. They are just a remarkable company. You can see ADI up today, you can see obviously Texas Instruments up today. On Semi up today. That’s where the rally is coming from. These are industrial, a lot of industrial semis. But Lam is trying to get into the most high-end stuff too. We should be proud. This is where all the intellectual property really lies. With these companies. That’s how they can make these chips. And I think if we were, if Jensen Huang were here or something I think he would say something like you know what we are great because of the companies that make the capital equipment machines. And Lam’s an amazing company.”
“What the administration needs to do among many things is to start celebrating the guys who really have stayed and done great things. Make people feel better. Stop making people feel bad. Lam is a gem. Just a gem.”
While we acknowledge the potential of LRCX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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