Investing.com - Financial Markets Worldwide

Lam Research stock rises ahead of investor day; is there any upside left today?

Published 19/02/2025, 15:40
© Reuters.
LRCX
-3.79%

Lam Research Corporation (NASDAQ:LRCX) shares saw a significant increase of nearly 5% Tuesday ahead of the company’s investor day today - the first since March 2020. Mizuho (NYSE:MFG)’s TMT Sector Specialist Jordan Klein commented that the surge may limit the stock’s potential for further gains today. He highlighted Lam Research as a favorite among hedge funds, particularly due to its exposure to the NAND market, where expectations are rapidly improving.

Lam Research’s recent earnings call suggested optimism for NAND Wafer Fabrication Equipment (WFE) growth in 2025, with the company indicating an upward trend. Despite NAND WFE recovering from historical lows, any growth is seen as a positive development. During the investor day, Lam Research is expected to emphasize its involvement in Gate-All-Around (GAA) technology and non-NAND areas such as High Bandwidth (NASDAQ:BAND) Memory (HBM) and metal plating.

Klein anticipates that Lam Research will present a de-risked outlook, especially with China’s market stabilizing. The focus will likely be on gross margin trends and the potential benefits from new products and technologies. The company has been investing heavily in research and development to capitalize on emerging trends in advanced semiconductor and memory production.

While long-term revenue growth rates are yet to be determined, Klein suggests that many investors will maintain their positions in Lam Research and may use peers such as Applied Materials (NASDAQ:AMAT) or ASML (AS:ASML) Holding (NASDAQ:ASML) as hedges. Despite the high current positioning, he does not expect Lam Research’s stock to experience significant movement from the investor day update.

Klein concluded that if NAND and DRAM stocks continue to rise, driven by momentum buying in anticipation of post-Q2 2025 pricing stabilization or improvement, Lam Research is likely to maintain its positive performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.