<div id="readability-page-1"><div><p>Lam Research (LRCX) is back in focus after reporting quarterly results ahead of analyst expectations and unveiling a multi year collaboration with CEA Leti, aimed at next generation semiconductor devices for AI and high performance computing.</p> <p>See our latest analysis for Lam Research.</p> <p>The recent earnings beat and CEA Leti partnership come on top of strong price momentum, with a 90 day share price return of 56% and a very large 1 year total shareholder return of 180.2%. This suggests investors have been repricing both growth potential and risk around Lam’s role in AI focused semiconductor equipment.</p> <p>If Lam’s AI driven story has your attention, it might be a good moment to see what else is on the move in our screener of 34 AI infrastructure stocks.</p> <p>With Lam shares up sharply over the past year and the stock trading at a discount of about 19% to the average analyst price target, you have to ask yourself: is there still a buying opportunity here, or is the market already pricing in future growth?</p> <h2>Most Popular Narrative: 13% Overvalued</h2> <p>Simply Wall St’s most followed narrative puts Lam Research’s fair value at about $204 per share, compared with the recent close at $231.29, framing today’s AI optimism against a higher required return of roughly 10.6%.</p> <blockquote> <p><em>Lam's leadership in new process technologies, such as ALD Moly for metal deposition and advanced packaging solutions (SABRE 3D systems), positions the company to capture an increasing share of spend on next-generation chip manufacturing, leading to market share gains, higher average selling prices, and expanding gross margins over the long term.</em></p> </blockquote> <p><em>Read the complete narrative.</em></p> <p>Curious what kind of revenue growth path and margin profile are baked into that fair value, and which future earnings multiple the narrative leans on most strongly? The full story connects Lam’s role in AI memory and wafer fab equipment cycles with a tight set of forecasts that could shift quickly if those core assumptions change.</p> <p><strong>Result: Fair Value of $204 (OVERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, the story could change quickly if China related demand softens or if a few key customers pull back on wafer fab equipment spending.</p> <p>Find out about the key risks to this Lam Research narrative.</p> <h2> Build Your Own Lam Research Narrative</h2> <p>If you are looking at the same numbers and reaching a different conclusion, or simply want to test your own assumptions, you can build a complete Lam Research view yourself in just a few minutes, starting with Do it your way.</p> <p>A great starting point for your Lam Research research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>If Lam has sharpened your focus on opportunities, do not stop here. Use the screener to see what other ideas could fit your portfolio before the market moves on.</p> <ul> <li>Target quality at a discount by scanning our list of 55 high quality undervalued stocks that pair solid fundamentals with prices that may not fully reflect their strengths.</li> <li>Strengthen your income stream by reviewing the 16 dividend fortresses that combine higher yields with characteristics many long term investors look for.</li> <li>Sleep a little easier by checking out 84 resilient stocks with low risk scores, built to highlight companies with lower assessed risk profiles that might fit a more cautious approach.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3><strong>New: </strong>AI Stock Screener &amp; Alerts</h3><p>Our new AI Stock Screener scans the market every day to uncover opportunities.</p><div><p>• Dividend Powerhouses (3%+ Yield)<br/>• Undervalued Small Caps with Insider Buying<br/>• High growth Tech and AI Companies</p><p>Or build your own from over 50 metrics.</p></div><p>Explore Now for Free</p></div></div></div>

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<p>Lam Research (LRCX) reported better-than-expected quarterly results and announced a multi-year collaboration with CEA Leti for AI semiconductor devices. The stock has seen a 90-day return of 56% and a 1-year return of 180.2%. Despite this, Simply Wall St values the stock at $204, indicating it is currently overvalued at $231.29. The company is well-positioned in next-gen chip manufacturing, but risks include potential demand softening from China and customer spending cuts. Investors are encouraged to explore other opportunities in AI infrastructure stocks.</p>

Simplywall

Assessing Lam Research (LRCX) Valuation After Earnings Beat And New AI Collaboration With CEA Leti