Lam Research Corporation (LRCX): Billionaire Ray Dalio Trims Stake in Chip Stock

Lam Research Corporation (NASDAQ:LRCX) is one of the 15 Best Stocks to Buy According to Billionaire Ray Dalio.

Lam Research Corporation (NASDAQ:LRCX) is a relatively recent addition to the 13F portfolio of Bridgewater Associates. At the end of 2024, the fund opened a new position in the company, disclosing it held around 2.5 million shares. In the coming quarters, this holding was reduced down to 1.6 million shares by the middle of 2025. However, Dalio then started buying up the stock again, increasing the stake by 111% in the third quarter of 2025. Filings for the fourth quarter of 2025 show that the fund owns just a little over 3 million shares in the firm, down 12% from the stake disclosed in the previous quarter.

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Lam Research Corporation (NASDAQ:LRCX) features in the 13F portfolio of elite hedge funds because of a number of reasons, the chief among them being the importance of the firm to the AI supercycle. Lam has a dominant position in etch and deposition technologies. The firm is also what some analysts have termed is the AI manufacturer oligopoly, alongside names like ASML and Applied Materials. Whoever wins the chip war is ultimately coming to Lam for equipment needed to produce them. This is viewed as a lower risk play for the AI boom. Lam is also a critical enabler in the HBM production process, supplying crucial tools used by leading memory makers for 3D stacking and advanced packaging.

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.

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