BN · rank #5 · 2026-07-20
LRCX
NASDAQ · $391.80B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.77 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +32.9% |
| Forward net margin Consensus forward net margin. | +33.1% |
| Net margin TTM Trailing twelve month net margin. | +30.9% |
| Margin expansion Forward minus trailing net margin (percentage points). | +2.2% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.81 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.58× |
| Analyst upside Spread between the consensus 12m target and the current price. | +17.0% |
| Last EPS surprise Most recent reported EPS versus consensus. | +8% |
| Market cap (USD) | $391.80B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Lam Research is a wafer fabrication equipment leader specializing in etch and deposition tools that are critical bottleneck-solving process steps for advanced DRAM, NAND, and logic nodes powering AI chips and high-bandwidth memory.
Rationale
Record Q3 FY2026 revenue of $5.84B, Q4 guidance of up to $7.0B, 33%+ forward net margins, and explicit management commentary on AI-driven demand directly confirm the bottleneck-solver thesis with multi-quarter revenue visibility rather than sentiment rotation.
Material risks
- 1U.S. export control escalation restricting shipments to Chinese foundry and memory customers could materially impair near-term revenue given China's historically significant share of Lam's equipment sales.
- 2AI memory architecture shifts — such as a move toward processing-in-memory or alternative stacking techniques requiring fewer Lam-intensive etch steps — could erode its sole-source bottleneck position even as overall chip demand grows.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.