BN · rank #7 · 2026-10-23
LRCX
NASDAQ · $288.02B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.41 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +20.5% |
| Forward net margin Consensus forward net margin. | +32.6% |
| 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. | 0.54× |
| Analyst upside Spread between the consensus 12m target and the current price. | +58.2% |
| Last EPS surprise Most recent reported EPS versus consensus. | +1% |
| Market cap (USD) | $288.02B |
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 Cryo 3.0 high-aspect-ratio etch moat, >50% advanced-packaging revenue growth, HBM/TSV process specificity, and 30% YoY revenue growth with a September-quarter guide implying 20%+ sequential acceleration — all pointing to genuine equipment-intensity demand rather than sentiment rotation.
Material risks
- 1U.S. export-control tightening on China (still ~26% of revenue) could trigger an abrupt revenue cliff that collapses the forward growth trajectory underpinning the 20.5% fwd revenue growth assumption and the 58% analyst upside case.
- 2June-quarter operating cash flow fell 42.95% YoY despite strong reported earnings, raising a near-term concern about working-capital or capex demands that could pressure the FCF quality the low debt-to-FCF ratio of 0.54x implies.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.