Top Buy- Lam Research

 

Lam Research (LRCX) is a designer and manufacturer of semiconductor processing equipment that is is to produce integrated circuits. The features technology is their wafer fabrication equipment and service, enabling chip makers to build smarter, faster, smaller, and better performing chips. "In fact, today, nearly every advanced chip is built with Lam Technology".

2020 was a record year, reporting 11.9 billion in revenue and EPS of $20.45. In addition, they gave investors strong earnings guidance for March quarter reporting of near $3.7 billion, furthering this growth story. One thing I could not help to disregard was their trailing P/E of 30.79x. Currently, they are trading at 25x, which is one of the reasons I am bullish here @$500. Lam was $579 a share heading into earnings last week (too far too fast) and subsequently plummeted to $481 after reporting a stellar quarter beating analysts estimates. 

February 11th, 2021 they will be presenting at Goldman Sachs Internet conference, which I believe will move them higher before and after. 

I have a $730 price target on Lam for 2021, as semiconductors become more used for more applications. 

 

 

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