Lam Research Corporation (LRCX) on Decifer

Decifer ranks LRCX number 106 of 276 tracked names on durable business quality.

Why it ranks here

• Its returns on invested money are modest, around 0%.
• Revenue is growing about 26% a year, profits grew 39% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power, with profitability widening as it grows.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Its profit margin and growth are both unusually high right now compared to its own history, the kind of combination that often fades once conditions normalize.
• One of 5 credible suppliers of semiconductor process equipment with returns around 34% and momentum of 14 out of 35, but the story is already widely recognized so expectations are no longer low.

The current read

The evidence on LRCX lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 7.5% this week. The drop is large enough to signal near-term caution, worth watching but not the weight of the evidence.

Themes

• Industrials, Reshoring & Transport: Lam Research provides etch and deposition equipment critical for every semiconductor fab. US fab construction drives equipment capital spend.
• Semiconductors & AI Compute: Lam Research Corporation sits in the fab equipment layer of the Semiconductors & AI Compute story.

Read the full LRCX research brief · See all quality rankings

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