Tech company's shares reach new record high
Lam Research (LRCX), a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry, has recently hit a new all-time high of $121.26 in intraday trading on Sept. 17. This impressive milestone comes after a series of positive developments and analyst predictions.
Since the Trend Seeker signaled a buy on Sept. 8, LRCX has gained 14.56%. This surge in value has not gone unnoticed by analysts, with price targets for LRCX ranging between $80-$135. CFRA's MarketScope Advisor, for instance, rates LRCX a "Buy" but with a price target of $115.
Lam's customer base includes leading semiconductor memory, foundry, and integrated device manufacturers. Some of these major semiconductor manufacturers, such as Intel, Samsung, TSMC, and other leading chipmakers, are known to be key customers in the semiconductor manufacturing equipment market. However, specific customer names are often confidential and not explicitly listed in public searches.
Morningstar thinks LRCX is 24% overvalued but assigns a wide economic moat rating due to strong chip manufacturing expertise and steep customer switching costs. The leading investment service also recognises LRCX's advanced technology and strong integration with leading chipmakers.
The article was written by Jim Van Meerten.
LRCX's stock is volatile and speculative in the current environment, requiring strict risk management and stop-loss strategies. However, it's worth noting that 1,775 investors following LRCX on Motley Fool think it will beat the market, while 141 think it won't. Similarly, 81,100 investors monitor LRCX on Seeking Alpha, which rates the stock a "Hold".
Value Line gives LRCX its "Highest" rating with a price target of $132. The Relative Strength Index (RSI) for LRCX is at 78.75%, indicating a strong uptrend. Lam is trading above its 20-, 50-, and 100-day moving averages, suggesting a bullish momentum.
Seeking Alpha comments on LRCX's advanced technology, strong integration with leading chipmakers, and recurring revenue from post-sales services. Its customer base also includes a range of electronic products, including mobile phones, personal computers, servers, wearables, automotive vehicles, and data storage devices.
As of now, 20 "Strong Buys", 2 "Moderate Buys", and 10 "Hold" opinions on LRCX are recorded by Wall Street analysts tracked by various websites. The Trend Seeker "Buy" signal for LRCX remains intact.
There's a technical support level around $119.10 for LRCX, providing a potential floor for any future price corrections. With a market capitalisation of $151.9 billion, LRCX continues to be a significant player in the semiconductor industry.
In conclusion, while LRCX's stock may be volatile and speculative, the company's strong position in the semiconductor industry, advanced technology, and strategic partnerships with leading chipmakers make it an attractive investment option for many.
