Lam Research shares have surged nearly 34% after a sharp drop, driven by a $3 billion increase in R&D spending over five years to advance semiconductor etching technology. This investment aims to keep the company at the forefront of next-generation chip manufacturing, especially as AI demands push for smaller, 3D chips requiring new etching processes. Strong quarterly results, positive guidance, and robust customer demand position Lam Research for further growth, despite execution risks tied to complex technology. The company is seen as a key innovator in the semiconductor equipment sector, potentially benefiting from a new industry supercycle.
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...
