QM · rank #17 · 2026-07-20
LRCX
NASDAQ · $438.11B (USD)
The exact numbers the algorithm saw.
| Momentum 12-1 Return from 12 months ago to 1 month ago. | +332.00% |
|---|---|
| ROE TTM Return on equity, trailing 12 months. | +66.8% |
| Profit margin Net profit margin, trailing 12 months. | +30.9% |
| Market cap (USD) Size filter: > $500M required. | $438.11B |
| Anchor (recent) Close on 2026-06-18 | $389.04 |
| Anchor (far) Close on 2025-06-20 | $90.06 |
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-fab equipment serving advanced logic, 3D NAND, DRAM, and packaging customers, with a large installed-base service business providing recurring revenue.
Rationale
The quality_momentum signal is strongly reinforced — 67% ROE, 31% profit margins, and a 3.32 momentum score align with three consecutive record revenue quarters, accelerating WFE spend, and June-quarter guidance of $6.6B with expanding margins, confirming both earnings quality and price momentum are fundamentally anchored.
Material risks
- 1China export-control escalation is the single most credible thesis-breaker — Lam has outsized China revenue exposure, and any incremental sanctions tightening could immediately impair the $140B WFE outlook management just raised, reversing the momentum catalyst.
- 2AI/memory capacity overbuild risk is real but lagged — if hyperscaler or NAND capex reverses in 2H 2026, Lam's newly expanded Malaysia facility adds fixed-cost leverage that could compress margins sharply and break the quality signal.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.