BN · rank #13 · 2026-10-21
LRCX
NASDAQ · $329.69B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.31 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +20.5% |
| 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. | 1.45 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.83× |
| Analyst upside Spread between the consensus 12m target and the current price. | +37.6% |
| Last EPS surprise Most recent reported EPS versus consensus. | +8% |
| Market cap (USD) | $329.69B |
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 supplying etch, deposition, clean, and advanced-packaging tools that sit at structural process bottlenecks in leading-edge logic, DRAM, HBM, and 3D NAND manufacturing.
Rationale
The bottleneck-solver thesis is directly reinforced by Lam's process-specific moat in high-aspect-ratio etch and HBM/TSV deposition, 30% YoY revenue growth, >50% advanced-packaging growth guided for 2026, and a fwd PEG of 1.45 that prices in meaningful but not euphoric upside against 37% analyst consensus upside.
Material risks
- 1U.S. export-control tightening on China (still ~26% of revenue) could trigger an abrupt revenue step-down that collapses the September-quarter guidance beat the market is pricing in ahead of the October 21 earnings print.
- 2June-quarter operating cash flow fell ~43% YoY, a meaningful divergence from reported earnings growth that warrants scrutiny on working-capital build and whether margin expansion is durable or front-loaded by mix.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.