LRCX Lam Research Corporation
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Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Semiconductor Equipment & Materials · Fremont, CA · 23,300 employees · lamresearch.com
Lam Research designs, manufactures, and services specialized equipment utilized in the fabrication of integrated circuits across global semiconductor markets. The company generates revenue by providing deposition, etch, and wafer cleaning systems, alongside ongoing customer support, replacement parts, and system upgrades.
Bull case
The business converts a healthy share of its revenue into free cash flow after accounting for stock-based compensation, underpinned by returns on capital that comfortably exceed its financing costs. It also gains from providing foundational equipment that artificial intelligence workloads rely upon.
- Turns 19% of revenue into free cash after stock pay.
- Returns on capital run well above its cost of capital.
- Annual revenue growth rose from +24% to +26%.
- It holds more cash than debt and is profitable.
Bear case
The company would suffer setbacks if trade export controls continue to fragment the technology supply chain, while its momentum remains tied to the sustained continuation of infrastructure spending for artificial intelligence.
- Trades at the 90th percentile of its own valuation history.
- The price assumes about +27% a year cash-flow growth, more than the +1% a year it delivered.
- One of its sector cycles (AI Infrastructure CapEx) is in saturation.
Features
- V-OVERVALUED Overvalued The price is 131% above its own-history reference value.
- V-WIDE-MOAT Wide moat Returns on capital run well above its cost of capital.
- V-ACCELERATING Growth accelerating Annual revenue growth rose from +24% to +26%. Shared by most companies we track
- H-FORTRESS Fortress balance sheet It holds more cash than debt and is profitable.
AI impact
Supplies what AI runs on Tailwind
The company makes equipment used to manufacture advanced semiconductors. It benefits as demand for artificial intelligence workloads drives chipmakers to invest heavily in new fabrication machinery, but its business is vulnerable to any reduction in infrastructure spending.
Where AI helps it
- Sells what AI workloads consume
Where AI could hurt it
- Depends on the AI build-out continuing
- AI tools could do part of what it sells (minor)
In the company's words
Demand for electronic systems supporting artificial intelligence, cloud infrastructure, communications, automotive, industrial and other intelligent systems is driving the need for high performance, energy efficient and highly integrated semiconductor devices.
For example, the growth of AI technologies and related infrastructure has been and is expected to continue to be a significant driver of capital equipment expenditures by semiconductor manufacturers across both the memory and non-memory market segments and requires us to respond (sometimes rapidly)…
Assessed by AI from the company's own annual report filed 7 Aug 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
LRCX is at the 90th percentile of its own valuation history. Depending on how far back you look, it ranges from the 84th to the 95th percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Above reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
What the price assumes
The measured price implies roughly +27.5% annual cash-flow growth, between +19.4% and +33.5% under other reasonable assumptions. Over the last three years it delivered +0.9% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not triggered — Margin break
- Not triggered — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.