Quality Momentum

QM · rank #19 · 2026-07-24

LRCX

NASDAQ · $383.63B (USD)

SignalBuy1.1strength 1.1 / 10
verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+293.82%
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.
$383.63B
Anchor (recent)
Close on 2026-06-24
$374.80
Anchor (far)
Close on 2025-06-24
$95.17

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 leading wafer-fab-equipment supplier specializing in etch and deposition systems, monetizing a large installed base through both capital equipment sales and high-margin customer support services for memory and logic chipmakers globally.

Rationale

Record Q4 2025 results with 20%+ revenue growth, ~49.7% gross margin, and ROE of 67% confirm that LRCX's quality_momentum screen is grounded in genuine fundamental acceleration driven by AI infrastructure and 3D NAND complexity demand, not mere sentiment rotation.

Material risks

  • 1Export control tightening on advanced etch/deposition tools to China could abruptly remove a material revenue contributor, directly compressing the revenue trajectory that underpins the momentum signal.
  • 2Earnings are reported 5 days after the as-of-date (2026-07-29), creating binary event risk — a guidance miss or cautious WFE outlook could sharply reverse the momentum signal before the position can be adjusted.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.

OpenAI
Proceed
Claude
Proceed
Gemini
Error