Hi – I noticed you started signing up for MarketBeat All Access but didn’t finish your registration. No worries—this happens! If you ran into any issues or had questions, just hit reply. I’d be happy to help. In case you’re ready to complete your subscription, I’ve set up a special link for you that gives you a free 30-day trial of MarketBeat All Access. You’ll also receive a $250.00 discount on your first year, meaning you’ll pay just $14.99 per month or $149.00 per year (normally $399.00). Start Your Risk-Free Trial Here So, what do you get with MarketBeat All Access? A whole lot of powerful tools to help you invest smarter: • Our premium daily newsletter, MarketBeat Daily Premium
• Exclusive rankings and recommendations from top-rated analysts
• Personalized portfolio tracking with My MarketBeat
• Real-time email and SMS alerts for the stocks you follow
• Full access to our database of over 750,000 analyst ratings
• A live news feed covering earnings, dividends, insider trades, and more
• Advanced stock screeners and research tools
• The MarketBeat Idea Engine to uncover short-term trading opportunities
• Priority delivery and customer support
• Extended Excel/CSV data exports for deeper analysis
• Premium research reports available only to All Access subscribers Click Here to Activate Your 30-Day Free Trial There’s no risk, and it only takes a minute to get started. I’d love to welcome you as a full member. Thanks again for checking out MarketBeat! Matthew Paulson
MarketBeat
Just For You 2 Reasons to Buy Into Lam's 185% Rally, 1 Reason to Run AwayWritten by Sam Quirke. Published 11/10/2025. 
Key Points - Lam Research continues to crush expectations and gain momentum, driven by strong earnings and AI tailwinds.
- Analysts are still hiking their price targets even after a 185% run since April.
- Despite short-term potential overbought signals, analyst support suggests that the stock could still offer upside.
Lam Research Corp. (NASDAQ: LRCX) has undoubtedly been one of 2025's defining semiconductor stories. The Fremont-headquartered company designs and manufactures wafer-fabrication equipment—an essential component in the chip supply chain—and appears to have caught the AI-driven wave in demand at just the right time. Its shares hit an all-time high of over $165 on Wednesday, Nov. 5, capping a staggering 185% rally since April. A mix of surging industry demand, strong earnings beats, and persistent analyst upgrades has fueled the rally. But after almost tripling in price since April, investors considering getting involved face a tough choice: is it too late to join the party, or is Lam only getting started? Here are two reasons to consider buying into the rally, and one reason to be cautious. Bullish Reason #1: Strong Fundamentals A strange chasm is coming to Wall Street...
It's already creating millionaires and billionaires at the fastest pace in history. CNBC calls it "the largest wealth creation spree in history." Yet 1 in 3 Americans now fear their financial situation is deteriorating. There's only one way to survive, says the man who predicted 2008 and 2020, but sadly it's already too late for many. Everything you need to know is here. First is the company's underlying performance, which has topped analyst expectations for several consecutive quarters. Lam's Q3 earnings update, released at the end of October, continued that track record and reinforced that the boom in chip spending is real. Both earnings per share (EPS) and revenue came in comfortably ahead of Wall Street expectations, with management projecting continued growth into the new year. Demand across the memory and logic segments improved sharply, helping to offset weaker sales in China and providing clear evidence that Lam's diversification strategy is working. Revenue for the quarter rose more than 27% year over year, driven largely by a rebound in memory-equipment demand and an improving product mix. Lam is also benefiting from structural tailwinds across the semiconductor landscape. Global wafer-fabrication equipment spending is projected to increase through 2026, with capacity expansion in the United States and Europe providing multi-year visibility. As one of the top players in the space, Lam is well-positioned to capture that demand. Bullish Reason #2: Overwhelming Analyst Support Unsurprisingly, analysts are broadly positive about the company's prospects. This week, Weiss Ratings reiterated its Buy rating, echoing moves from DBS Bank, Cantor Fitzgerald and Oppenheimer late last month. Those actions followed Lam's earnings report, and notwithstanding the eye-watering rally the shares have already logged this year, some recent price targets still imply gains of up to about 25% from where the stock closed on Thursday. There now appears to be a clear consensus among analysts that Lam's rally is grounded in improving fundamentals rather than pure short-term hype, even if momentum has played a role. The stock has been accumulating Buy—or equivalent—ratings from multiple firms throughout the year, and many view Lam as one of the cleanest ways to play the AI infrastructure buildout. Heading into the final weeks of the year, that sort of institutional support is exactly what investors should look for if they're considering getting involved now. Even after the 185% run-up since April, some argue the stock remains reasonably valued relative to its growth potential. Its price-to-earnings ratio, around 35, sits near the same level it was more than a year ago, despite a string of record revenue reports each quarter. While it can be difficult to buy a stock at record highs, that valuation narrative provides a measure of comfort. 1 Reason to Stay Away There is a legitimate concern that the stock has moved too high, too fast. After nearly tripling in less than eight months, technical indicators suggest Lam may be approaching exhaustion. For much of last month the stock's relative strength index (RSI) was well above 80, indicating extremely overbought conditions. It has cooled considerably since then and is currently around 64. More days of unchecked gains could push it back into overheated territory, which would be a warning sign. It doesn't help that many tech stocks—and the broader market—look like they could be due for a correction. That said, given Lam's strong fundamentals and bright outlook, any meaningful pullback could present an attractive entry point for investors who missed the initial rally.
|
Post a Comment
Post a Comment