Lam Research (LRCX) is generating significant interest, driven by rising demand for semiconductor equipment related to artificial intelligence (AI) and high-performance computing. Research firms like Citi and Aletheia Capital emphasize Lam’s strong position in advanced 3D chip architectures, particularly its etch and deposition tools vital for AI manufacturing. Despite the enthusiasm, concerns linger regarding cyclical wafer fab equipment spending and concentrated customer capex, especially in China. Analysts project Lam’s revenue could reach $23.6 billion and earnings $6.7 billion by 2028, necessitating an 8.5% growth rate each year. Aletheia recently initiated coverage with a $260 price target, linking the stock’s upside to its leadership in AI processes. Current fair value estimates for Lam range from $66 to $160, reflecting diverging opinions on its future amid potential challenges in memory and foundry capex. Investors are advised to weigh these insights alongside the overall AI-driven demand narrative for informed decision-making.
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