Lam Research's stock has surged over 120% in seven months, far outperforming the benchmark's 11% gain. However, its current forward price-to-earnings ratio of 62x is significantly higher than its peers at 25x, raising concerns about overvaluation. Despite strong demand growth in wafer fabrication and etching markets, much of the stock's upside appears priced in. As a result, the analyst has downgraded Lam Research from Buy to Hold, suggesting limited further upside until company fundamentals improve to justify the premium valuation.
Chip equipment stocks, led by Lam Research's 5% rise, outperformed the broader semiconductor sector on Friday. Applied Materials and KLA Corp. also gained 4% and 3%, respectively, as investors focused on the tools layer, which reflects future chipmak...
Steve Eisman recommends investing in chip suppliers like Micron, SK Hynix, ASML, KLA, Lam Research, and Applied Materials rather than chip designers amid the AI arms race. These suppliers have outperformed Nvidia in 2026, benefiting from strong AI-dr...
