Lam Research received a Buy rating due to its strong technological advantage in plasma dry etching for advanced memory chip manufacturing. The ongoing buildout of AI infrastructure and increased spending by hyperscalers are fueling a memory supercycle, which supports Lam Research's revenue growth and margin stability. In Q3, the company reported revenues of $5.84 billion, up 24% year-over-year, with net margins around 30%. Its customer support segment reached a record $2 billion, improving recurring revenue visibility. The stock trades at a price-to-earnings ratio of 48 times trailing twelve months GAAP earnings, with a fair value estimated between 45 and 60 times PE, suggesting potential upside of -6% to +25%.
