Quality Momentum

QM · rank #17 · 2026-07-27

LRCX

NASDAQ · $383.63B (USD)

SignalSell
verdict · CAUTION

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.
+291.89%
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 2026-06-26
$379.09
Anchor (far)
Close on 2025-06-27
$96.73

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

LRCX is a leading wafer fab equipment supplier in etch, deposition, and advanced packaging, with a growing installed-base service stream tied to AI, HBM, and memory/foundry demand.

Rationale

The signal fits a quality-momentum profile because Lam combines strong 12-1 momentum with very high ROE and margins, while recent results showed record revenue/profitability and continued AI-led guidance support.

Material risks

  • 1Heavy exposure to China capex and tighter U.S. export controls could materially reduce orders and interrupt the recent growth run.
  • 2Customer concentration in a few large memory and foundry accounts leaves Lam vulnerable if a key customer reallocates spend, insources capability, or shifts process tool share.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 1 of 3 voted to proceed.

OpenAI
Proceed
Claude
Caution
Gemini
Error