Latest news with #LamResearch
Yahoo
3 days ago
- Business
- Yahoo
2 Top Tech Stocks That Can Double by 2030
Nvidia continues to meet insatiable demand for AI chips in the data center market. Lam Research is seeing its addressable chip market expand as AI-based demand continues to grow. 10 stocks we like better than Nvidia › Investing in innovative technology leaders can help you build wealth over the long term. The tech-centric Nasdaq Composite has doubled in the last five years, and there are still opportunities to buy top tech stocks at attractive valuations relative to their growth prospects. Here are two companies serving the increasing demand for artificial intelligence (AI) chips whose shares could potentially double in value by 2030. Nvidia (NASDAQ: NVDA) is the leading supplier of graphics processing units (GPUs), which are in high demand to power AI workloads in data centers. After the stock dipped earlier this year over concerns about potential softening in data center spending, Nvidia reported another quarter of strong growth that has its stock closing in on new highs. Revenue was reported at $44 billion, up 69% year over year and 12% over the previous quarter. Despite missing out on $2.5 billion in revenue for its H20 chip over new export requirements to China, the company still managed to beat Wall Street's revenue estimate in the quarter. CEO Jensen Huang spoke to how strong the demand for AI is in the earnings report. "Countries around the world are recognizing AI as essential infrastructure -- just like electricity and the internet -- and Nvidia stands at the center of this profound transformation," he said. AI spending is expected to boost the global economy by $20 trillion by 2030, according to IDC. AI is the next industrial revolution, and it spells enormous growth potential for the leading AI chip supplier. Nvidia continues to benefit from growing demand from the leading cloud service providers like Amazon Web Services and Alphabet's Google Cloud. Demand based on cloud applications made up nearly half of the chipmaker's data center sales last quarter, which grew 73% year over year to $39 billion. It is providing AI computing systems for a variety of markets, including autonomous driving and robotics. These are potentially multitrillion-dollar industries that could drive long-term demand for the company's chips. Nvidia faces increasing competition from other technology leaders designing their own custom semiconductors. But these chips are still no comparison for the general-purpose computing power its GPUs provide. The company should continue to see growing revenue this year as it ramps up its Blackwell computing system, which provides a significant boost in performance for AI workloads. Analysts expect earnings to grow 29% on an annualized basis over the next several years. Assuming the stock continues to trade at the same forward price-to-earnings multiple of 33, this would be more than enough earnings growth to double the share price in five years. Another company playing a vital role in meeting increasing demand for chips is Lam Research (NASDAQ: LRCX). Its expertise is in providing etch and deposition equipment, which are essential steps in the chip manufacturing process. The rise in demand has sent the stock up more than 200% in the last five years. Shares are currently trading about 25% off previous highs, which sets up a good buying opportunity. Lam just reported another solid quarter of growth with revenue surging 24% year over year. While there is near-term uncertainty for the semiconductor industry due to the impact of tariffs, Lam's management is very upbeat about its long-term prospects. CEO Tim Archer said, "Lam's portfolio is the most compelling it's ever been, driving opportunities to expand our addressable market, gain share, and deliver innovative services as deposition and etch intensity increases in the production of advanced semiconductors." The semiconductor industry can be cyclical, but it has grown for decades. AI will be a major catalyst over the next decade. As it relates to Lam, wafer equipment spending grew at an annualized rate of 11% from 2013 through 2024, while revenue grew faster at 14%. The company expects to outperform the industry. As semiconductors continue to transition to more sophisticated designs, Lam's focus on etch and deposition, which create the intricate electrical patterns on a wafer, should drive more growth for shareholders. Analysts expect Lam Research to grow earnings at an annualized rate of 15%, yet the stock trades at a reasonable forward earnings multiple of 21. Investors should expect the stock to climb on par with the company's earnings, which are pointing to a double in five years. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Lam Research, and Nvidia. The Motley Fool has a disclosure policy. 2 Top Tech Stocks That Can Double by 2030 was originally published by The Motley Fool
Time of India
6 days ago
- Business
- Time of India
Karnataka: Cabinet committee clears sops for three semiconductor projects
Live Events A Cabinet subcommittee chaired by chief minister Siddaramaiah on Wednesday cleared incentives for the proposed investments of Applied Materials, Lam Research and Bharat Semi Systems The subcommittee cleared attractive incentives for the three projects, which would mark a decisive step toward making the state semiconductor powerhouse, IT/BT Minister Priyank Kharge told subject came before the cabinet subcommittee as these are mega as well as pioneering projects for the state, promising a boost to the state's tech ecosystem. Only the Cabinet or its subcommittee is empowered to clear if the government wished to give incentives over and above the state's ESDM (Electronics System Design and Manufacturing) Kharge said, was doubling down on its ambition to become a global semiconductor hub. Applied Materials, the minister said, will set up India's first-of-its-kind R&D Fab—Innovation Center for Semiconductor Manufacturing (ICSM)—in Bengaluru. Spread across 10 acres with Rs 4,851 crore project, he posted on X, would create 1,500 jobs and become a collaborative platform for next-gen chip and display Research would set up two units in Karnataka: an advanced R&D lab with an investment of Rs 6,790 Cr, and a semiconductor silicon component manufacturing facility with and investment of Rs 9,111 crore, creating 1400 jobs, delivering cutting-edge capabilities in 2nm technology and silicon ingot Semi Systems, Kharge said, will establish an integrated design manufacturing semiconductor unit including both a design plus Fab facility in Mysuru with Rs 2,342 crore. investment. It will focus on compound semiconductors like silicon carbide and gallium nitride—critical for defence, telecom and climate resilience creating 620 plus subcommittee meeting was attended by Kharge, Industries Minister MB Patil, energy minister KJ George, and small-scale industries minister SB Darshanapur.
Time of India
6 days ago
- Business
- Time of India
India's semiconductor ambitions: Bridging the gap with the US
Live Events I ndia Semiconductor Mission (ISM): A $10 billion program aimed at establishing a comprehensive semiconductor ecosystem, focusing on domestic chip design, fabrication, and R&D capabilities. [ A $10 billion program aimed at establishing a comprehensive semiconductor ecosystem, focusing on domestic chip design, fabrication, and R&D capabilities. [ Production-Linked Incentive (PLI) Scheme: Offers financial incentives to companies establishing chip fabrication units in India, aiming to attract global players and boost domestic manufacturing. Offers financial incentives to companies establishing chip fabrication units in India, aiming to attract global players and boost domestic manufacturing. Chips to Startup (C2S) Programme: Launched in 2021, this initiative seeks to train 85,000 engineers across 113 institutions in VLSI and embedded system design by 2027, addressing the critical need for skilled professionals. Launched in 2021, this initiative seeks to train 85,000 engineers across 113 institutions in VLSI and embedded system design by 2027, addressing the critical need for skilled professionals. These efforts are complemented by significant investments from global corporations. For instance, U.S.-based Lam Research plans to invest over $1 billion in Karnataka to boost India's semiconductor ecosystem, aligning with the government's vision to expand the industry. [ Infrastructure deficits: Semiconductor fabrication requires advanced infrastructure, including uninterrupted power and water supply, cleanroom environments, and specialised equipment. India's current infrastructure falls short, as evidenced by delays in projects like the Vedanta-Foxconn initiative due to inadequate facilities. Semiconductor fabrication requires advanced infrastructure, including uninterrupted power and water supply, cleanroom environments, and specialised equipment. India's current infrastructure falls short, as evidenced by delays in projects like the Vedanta-Foxconn initiative due to inadequate facilities. Skilled workforce shortage: While India produces approximately 600,000 engineering graduates annually, only a small fraction are job-ready for the semiconductor industry, particularly for fabrication-specific roles. This gap underscores the need for specialised training programs and industry-academia collaborations. While India produces approximately 600,000 engineering graduates annually, only a small fraction are job-ready for the semiconductor industry, particularly for fabrication-specific roles. This gap underscores the need for specialised training programs and industry-academia collaborations. Supply chain dependencies: India remains heavily reliant on imports for semiconductor components, exposing it to geopolitical risks and supply chain disruptions. Developing a resilient domestic supply chain is imperative for long-term sustainability. [ Enhancing infrastructure : Investments in state-of-the-art facilities, reliable utilities, and logistical support are crucial to attract and retain semiconductor manufacturers. : Investments in state-of-the-art facilities, reliable utilities, and logistical support are crucial to attract and retain semiconductor manufacturers. Strengthening education and training : Expanding programs like C2S and fostering partnerships between academia and industry can cultivate a skilled workforce tailored to the industry's needs.[ : Expanding programs like C2S and fostering partnerships between academia and industry can cultivate a skilled workforce tailored to the industry's needs.[ Encouraging research and innovation : Increasing R&D spending and promoting innovation through grants and incentives can position India as a hub for semiconductor research. : Increasing R&D spending and promoting innovation through grants and incentives can position India as a hub for semiconductor research. Building strategic alliances: Collaborating with global leaders and participating in initiatives like the United States–India Initiative on Critical and Emerging Technology (iCET) can facilitate technology transfer and joint ventures. [ As the global semiconductor industry undergoes rapid transformation, India stands at a pivotal juncture, poised to redefine its role in this critical sector. While the United States maintains a strong position with its robust infrastructure and significant investments, India's strategic initiatives and burgeoning talent pool signal a determined stride toward establishing itself as a formidable US semiconductor industry, valued at approximately $250 billion in 2025, commands nearly 47% of the global market share in design and manufacturing. This presence is underpinned by substantial investments exceeding $200 billion since 2020, bolstered by the CHIPS and Science Act, which allocates $52 billion to rejuvenate domestic semiconductor manufacturing and reduce reliance on Asian supply chains.[ In contrast, India's semiconductor market, though smaller at $54 billion, is projected to double to $108 billion by 2030. India's strength lies in its design capabilities, contributing 20% of the global semiconductor design workforce. However, it currently holds a mere 0.1% of global wafer fabrication capacity, highlighting a significant gap in manufacturing infrastructure. [ /]Recognising the strategic importance of semiconductors, the Indian government has launched several initiatives:Despite these initiatives, India faces several challenges:To bridge the gap with global leaders, India must adopt a multifaceted approach:India's journey in the semiconductor domain is marked by ambition and potential. While challenges persist, strategic initiatives, coupled with global collaborations and a focus on infrastructure and skill development, can propel India toward becoming a significant player in the global semiconductor landscape. The road ahead requires concerted efforts from the government, industry, and academia to realize this vision.
Yahoo
6 days ago
- Business
- Yahoo
3 Reasons Growth Investors Will Love Lam Research (LRCX)
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. Lam Research (LRCX) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). Here are three of the most important factors that make the stock of this semiconductor equipment maker a great growth pick right now. Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Lam Research is 11.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 33.2% this year, crushing the industry average, which calls for EPS growth of 16.1%. Asset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales. Right now, Lam Research has an S/TA ratio of 0.88, which means that the company gets $0.88 in sales for each dollar in assets. Comparing this to the industry average of 0.49, it can be said that the company is more efficient. While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Lam Research looks attractive from a sales growth perspective as well. The company's sales are expected to grow 22.1% this year versus the industry average of 4.2%. Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. There have been upward revisions in current-year earnings estimates for Lam Research. The Zacks Consensus Estimate for the current year has surged 0.5% over the past month. While the overall earnings estimate revisions have made Lam Research a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination positions Lam Research well for outperformance, so growth investors may want to bet on it. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lam Research Corporation (LRCX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
6 days ago
- Business
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Lam Research Gains 18% in a Month: Should You Buy the Stock Now?
Lam Research Corporation LRCX has seen its share price soar 18.4% over the past month. This surge has significantly outperformed the broader Zacks Computer and Technology Sector, which gained 11% during the same period. Image Source: Zacks Investment Research This outperformance raises the question: Should investors accumulate the stock or book profits and exit the investment? Lam's recent surge has been driven in part by improving sentiment around U.S.-China trade. Reports of a temporary tariff rollback between the two nations have reassured markets. The United States agreed to reduce tariffs on Chinese imports to 30% from 145%, while China will cut duties on U.S. goods from 125% to 10%. These new terms will be in place for 90 days. The temporary trade truce revived hopes for smoother international trade and strengthened confidence in the economic outlook. As fears of escalating trade disruptions faded, equities, particularly in the tech and semiconductor sectors, rallied sharply. Apart from Lam Research, this broader market optimism also boosted the share prices of other semiconductor players, including NVIDIA NVDA, Broadcom AVGO and Advanced Micro Devices AMD. Over the past month, shares of NVIDIA, Broadcom and Advanced Micro Devices have soared 24.3%, 23.4% and 19.3%, respectively. Lam Research's long-term growth potential, along with invigorated investor optimism, makes the stock worth buying at the moment. Lam Research is well-positioned to benefit from the rising demand for artificial intelligence (AI) and datacenter chips. These chips require highly advanced fabrication processes, and LRCX provides the critical deposition and etching technologies that make this possible. In 2024, Lam Research shipped more than $1 billion in products for next-gen chip nodes and packaging. Management expects this figure to triple by 2025. The industry's move toward technologies like backside power distribution and dry-resist processing plays directly into LRCX's strengths. As capital investment in AI accelerates, Lam Research stands to benefit from being a key enabler of that buildout. Lam Research's continued investment in research & development and product innovation is paying off. Its Cryo 3.0 technology has set new performance benchmarks, giving it a competitive edge. Meanwhile, the Aether dry-resist system is gaining adoption, especially for memory applications like high-bandwidth DRAM. Expanding its manufacturing base in Asia has also helped the company improve margins and efficiency. In the third quarter of fiscal 2025, Lam Research's non-GAAP operating margin rose to 32.8%, up 210 basis points year over year. That's impressive, considering the challenges across the broader semiconductor market. Lam Research's latest financial results for the third quarter of fiscal 2025 confirm its ability to execute well even in uncertain times. Revenues rose 24.5% year over year to $4.72 billion, while non-GAAP EPS (adjusted for the stock split) jumped 33.5%. Strong demand from memory and logic customers, along with tight cost control, helped the company beat expectations on both the top and bottom lines. Lam Research Corporation price-consensus-eps-surprise-chart | Lam Research Corporation Quote Lam Research's consistent performance reinforces investor trust in its long-term business model and earnings stability. The stock has an impressive history of beating earnings estimates. LRCX surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 6.1%. Despite the recent rally, Lam Research stock remains reasonably priced. LRCX currently trades at a forward price-to-earnings (P/E) ratio of 21.17, which is significantly lower than the sector's 25.72. The company's discounted valuation multiple aligns with its long-term growth potential. Image Source: Zacks Investment Research The stock's P/E ratio is also lower than major semiconductor players, including Advanced Micro Devices, NVIDIA and Broadcom. At present, Advanced Micro Devices, NVIDIA and Broadcom have forward 12-month P/E multiples of 24.24X, 29.73X and 32.19X, respectively. Lam Research's discounted valuation, solid financial performance and strategic focus on AI-driven growth make it a compelling investment option right now. The company's expanding market share in AI and datacenter fabrication, coupled with innovative product launches, strengthens its competitive positioning. LRCX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
