Lam Research Corp LRCX

Wide-Moat Lam Is Enjoying an Immense Growth Cycle For AI Chip Infrastructure

Lam Research is one of the largest providers of wafer fabrication equipment for semiconductors, and we believe its strong portfolio should enable it to maintain and increase its large market share. Lam historically was weighted to memory chipmakers, but has gained significant share in logic chip equipment and we expect it to be more in line with peers’ exposure in the future. In our view, Lam will benefit from broadly increasing chip complexity over the long term, including advanced packaging, new transistor architectures, and high-bandwidth memory capacity expansion. We expect Lam to increase sales in the mid- to high-single digits over the course of market cycles and over the long term.