Top 5 Undervalued Tech Stocks

4. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 62

PE Ratio: 15.87

Lam Research Corporation (NASDAQ:LRCX) provides semiconductor processing equipment used in the fabrication of integrated circuits. The firm is well-positioned to enjoy an upward trajectory as companies around the world pour billions into enhancing semiconductor manufacturing output. Its clients include Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), the world’s largest semiconductor foundry, among others.

On March 18, analyst Atif Malik of research firm Citi added Lam Research Corporation (NASDAQ:LRCX) to the firm’s US Focus List and kept a ‘Buy’ rating on the company’s shares with a $750 price target. He sees the firm boasting outsized memory sales exposure in comparison to its US peers and sees a good entry point given shares are down 28% year-to-date. Berenberg analyst Tammy Qiu in January reiterated a ‘Buy’ rating on Lam Research Corporation (NASDAQ:LRCX) and noted the chip shortage will gradually resolve by end of 2022, and spending in the sector will remain high in the coming years.

Reporting its fourth quarter earnings on January 26, Lam Research Corporation (NASDAQ:LRCX) posted an EPS of $8.53, which exceeded analysts’ expectations by $0.02. $4.23 billion in quarterly revenue was up 22.29% year-on-year, but fell below analysts’ forecasts by $188 million.

62 hedge funds were bullish on Lam Research Corporation (NASDAQ:LRCX) in the fourth quarter, as compared to 47 in the preceding quarter. Billionaire Ken Fisher’s Fisher Asset Management was the top shareholder of Lam Research Corporation (NASDAQ:LRCX) in the fourth quarter, with 1.8 million shares valued at $1.29 billion.