We recently published Jim Cramer Discussed These 12 Stocks & Wondered Whether He Should Melt Silver. Lam Research Corporation (NASDAQ:LRCX) is one of the stocks that Jim Cramer discussed.
Lam Research Corporation (NASDAQ:LRCX) is an American semiconductor manufacturing equipment provider. Its shares have gained 156% over the past year and by 13% year-to-date. Stifel bumped the firm’s share price target to $250 from $160 in mid-January and kept a Buy rating on the shares. The financial firm discussed Lam Research Corporation (NASDAQ:LRCX)’s wafer fabrication equipment (WFE) sales and remarked that the firm is likely to exceed its growth in 2026. RBC Capital also discussed the firm, as it set a $260 share price target and an Outperform rating. RBC, like Stifel, remained confident about Lam Research Corporation (NASDAQ:LRCX)’s 2026 wafer equipment sales and added that the firm had benefited from tailwinds in the memory market and Cramer also discussed the memory equipment sales as he pointed out that Lam Research Corporation (NASDAQ:LRCX) can continue to do well in the future:
“There are a whole class of companies, that, we never had a lot of 300 billion dollar companies. 300 billion dollar company, it’s the intellectual property behind a lot of what you hear. They make the machines, capital equipment, you go into the foundry and their machines are there. They make em for NAND, which is flash, they make them for memory, we’re gonna have Western Digital, Sandisk. These guys are the ones you give the order to. It’s really a beautiful company, it’s a combination of Novellus and Lam, if people remember from the 2020, from the 2012 buyout. And David, they also have something called packaging, packaging’s got a higher multiple. It’s the way that you put all the stuff together. I want people to understand, that the key to what is happening is the restraint. The companies like Western Digital, Sandisk, Seagate, they didn’t order a lot. Intel, they didn’t order a lot. And when you hear they didn’t order a lot, what are you thinking? They didn’t order a lot from this company, so now, the orders are going to be huge. . .this is the best, Tim Archer runs this conpany, it’s one of the best companies in the world. And that’s why it’s 300 billion dollars because it has the capacity to make more wafer equipment. . . they used to come see me and they say, look, we are important, and we are good, and you’d listen and they’d trace it out. And their CFO said. . .it’s like, holy cow, one day this 50 billion dollar company is going to be a 100 billion. No, it blew right through, 200, 250, 300. People need to know these companies, because this is the future.”
Artisan Value Fund also discussed Lam Research Corporation (NASDAQ:LRCX) in its third quarter 2025 investor letter:
“On the positive side, the three new purchases we made in Q2 during the post-Liberation Day market meltdown—Lam Research Corporation (NASDAQ:LRCX), ASML and ThermoFisher Scientific—were each among our top contributors to returns in Q3. Lam and ASML are semiconductor equipment companies, and Thermo Fisher is a life science tools and clinical research company. As value investors, conditions of fear and uncertainty are fertile ground for creating attractive long-term buying opportunities. Few areas of the market were under greater pressure to start the year than semiconductors & semiconductor equipment stocks. We had been researching Lam since 2023, so we knew the company well and were able to act quickly when the stock plunged. At our initial purchase, Lam was selling for ~$60, almost 50% below its July 2024 highs. Lam is one of the key global suppliers of chip equipment serving the memory (NAND and DRAM) and foundry/logic markets. The financial condition is rock solid as it has a net cash balance sheet, and the company returns 100% of earnings to shareholders via share repurchases and dividends. Shares were selling for a 17X P/E on cyclically depressed earnings at the time of initial purchase, which we believed was an attractive valuation given the compounding nature of the business.”
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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Disclosure: None. This article is originally published at Insider Monkey.
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