Lam Research Corporation (LRCX): A Bull Case Theory

We came across a bullish thesis on Lam Research Corporation on MTC’s Substack. In this article, we volition summarize the bulls’ thesis on LRCX. Lam Research Corporation's share was trading astatine $213.31 as of February 5th. LRCX’s trailing and forward P/E were 43.80 and 41.15 respectively according to Yahoo Finance.

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing instrumentality utilized successful the fabrication of integrated circuits successful the United States and internationally. LRCX reported a beardown 2nd 4th of fiscal 2026, exceeding revenue, earnings, and guidance expectations, driven by robust request for AI infrastructure and precocious packaging applications.

Revenue reached $5.34 billion, up 22% year-over-year and somewhat supra consensus, marking the company’s tenth consecutive 4th of maturation contempt a important geographical gross restructuring that reduced China’s publication from 43% to 35%.

Non-GAAP EPS roseate 39.6% year-over-year to $1.27, portion gross and operating margins remained steadfast astatine 49.7% and 34.3%, respectively, adjacent with sequential contraction owed to lawsuit premix changes. The foundry conception dominated strategy gross astatine 59%, led by TSMC’s enlargement into precocious nodes, portion DRAM gross surged, offsetting weaker NAND, which fell to 11% of strategy revenue. Lam’s Customer Support Business Group contributed $1.99 cardinal successful revenue, highlighting the spot of recurring services.

Technologically, Lam is strategically positioned with enactment crossed cardinal semiconductor inflection points, including gate-all-around transistors, high-bandwidth representation (HBM4), and precocious packaging. Tools specified arsenic Akara, VECTOR TEOS 3D, Syndion®, SABRE 3D®, and Striker® springiness Lam a unsocial end-to-end beingness from wafer mentation to last assembly, enabling seizure of multi-year maturation arsenic semiconductor architectures scale. The company maintained aggressive superior returns, repurchasing $2.44 billion of banal and paying $619.5 cardinal successful dividends, portion sustaining a flexible equilibrium expanse with $6.2 cardinal successful cash.

Despite near-term borderline pressures from geographic and lawsuit mix, cleanroom constraints, and imaginable regulatory headwinds successful China, Lam’s diversified lawsuit base, technological leadership, and expanding work gross supply resilience.

Forward guidance for Q3 FY26 projects $5.7 cardinal gross and $1.35 EPS, with full-year wafer fabrication instrumentality (WFE) spending expected to scope $13.5 billion. Lam’s operation of industry-leading marketplace share, precocious exertion portfolio, and beardown currency procreation positions it arsenic a compelling concern with aggregate maturation catalysts, peculiarly successful AI-driven semiconductor request and precocious packaging solutions.