BN · rank #20 · 2026-09-08
LRCX
NASDAQ · $384.97B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.22 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +17.0% |
| Forward net margin Consensus forward net margin. | +32.7% |
| Net margin TTM Trailing twelve month net margin. | +31.3% |
| Margin expansion Forward minus trailing net margin (percentage points). | +1.4% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.36 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.84× |
| Analyst upside Spread between the consensus 12m target and the current price. | +20.5% |
| Last EPS surprise Most recent reported EPS versus consensus. | +8% |
| Market cap (USD) | $384.97B |
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 dominant supplier of etch and deposition wafer fabrication equipment, currently operating at record scale as AI-driven demand for advanced logic and high-bandwidth memory tools drives fiscal 2026 revenue to ~$23.2B with 26% YoY growth.
Rationale
LRCX screens validly as a bottleneck-solver because its high-aspect-ratio etch and 3D memory deposition tools occupy qualified, near-sole-source positions in process flows that cannot be easily bypassed as chipmakers scale AI and HBM capacity, and record gross margins (~52%) confirm sustained pricing power rather than commodity competition.
Material risks
- 1Export control tightening on advanced semiconductor equipment into China could abruptly remove a material revenue segment, directly undermining the revenue visibility that justifies the bottleneck-solver premium — this is the most concrete near-term thesis disqualifier given the current geopolitical trajectory.
- 2The brief explicitly notes revenue visibility rests on AI-driven spending momentum rather than contractual backlog, meaning a cyclical deceleration in memory or logic capex — historically sharp in semis — could rapidly deflate the forward growth assumptions underpinning the fwd PEG of 1.36.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.