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Lam Research Helping Drive AI Growth

Lam Research’s semiconductor processing equipment fabricates integrated circuits needed for AI. The company has also been diversifying into related areas as well as building new facilities close to its global customers’ research hubs. So, it’s positioning to be a player for many years down the line, especially as enterprise storage transitions to newer technologies.

In terms of earnings, Lam Research reported quarterly earnings of $7.79 per share, which is 11.4% higher than the prior year. And while revenue slightly declined, it still beat consensus expectations.

It’s no wonder LRCX shares are up 37% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loving Lam Research Shares

Institutional volumes reveal plenty. In the last year, LRCX has enjoyed strong investor demand, which we believe to be institutional support.

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Each green bar signals unusually large volumes in LRCX shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.mapsignals.com
Source: www.mapsignals.com

Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Lam Research.

Lam Research Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, LRCX has had strong sales and earnings growth:

  • 3-year sales growth rate (+21.5%)

  • 3-year EPS growth rate (+32.4%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +22.5%.

Now it makes sense why the stock has been powering to new heights. LRCX has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Lam Research has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when LRCX was a top pick…rising higher over time:

Source: www.mapsignals.com
Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Lam Research Price Prediction

The LRCX rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author owns LRCX in personal and managed accounts at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.

This article was originally posted on FX Empire

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