Since last year, the tech industry has been in the limelight, given accelerated demand for advanced tech productions and solutions amid remote working trends and rapid digital transformation. In this environment, companies are investing significantly in developing breakthrough technologies to stay ahead of the competition…
In 2023, $30 billion in revenue is expected to be generated by products and services that did not exist prior to the pandemic, according to Gartner. The research and advisory company also projects the worldwide IT spending will total $4.2 trillion in 2021, increasing 8.6% year-over-year. Furthermore, governments are investing substantially to overcome a current shortage in semiconductor production, which is expected to accelerate tech innovation in the long run.
Given this backdrop, we believe tech companies Lam Research Corporation (LRCX – Get Rating), KLA Corporation (KLAC – Get Rating), and STMicroelectronics N.V. (STM – Get Rating) are well-positioned to deliver significant returns in the upcoming months.
Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used to fabricate integrated circuits worldwide. It operates in the manufacturing and servicing of wafer processing semiconductor manufacturing and equipment segment. LRCX is based in Fremont, Calif.
On August 4, LRCX announced the expansion of its global manufacturing capacity with the opening of its largest facility in Malaysia. The move should allow the company to address the growing demand for semiconductor technology while fortifying the resiliency of the company’s manufacturing network.
LRCX’s revenues increased 48.5% year-over-year to $4.15 billion in its fiscal second quarter, ended June 27. Its operating income grew 74.1% from its year-ago value to $1.32 billion, while its net income improved 64.3% year-over-year to $1.14 billion. The company’s EPS increased 68.7% year-over-year to $7.98.
A 4.07 billion consensus revenue estimate $ for its fiscal third quarter (ending September 2021) indicates a 30.9% increase year-over-year. The Street expects the company’s EPS to rise 37% from the prior-year quarter to $7.77 in the current quarter. LRCX has an impressive earnings surprise history also; it beat the consensus EPS estimates in each of the trailing four quarters.
LRCX gained 71.5% over the past year to close yesterday’s trading session at $647.96. The stock has gained 37.2% year-to-date.
LRCX has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree.
LRCX also has a grade of B for Momentum and Quality. In addition, it is ranked #38 among the 99 stocks in the B-rated Semiconductor & Wireless Chip industry.
Click here to view additional LRCX ratings for Growth, Value, Sentiment, and Stability.
KLAC designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nanoelectronics industries worldwide. KLAC is headquartered in Milpitas, Calif.
On June 22, KLAC launched four new, improved products for automotive chip manufacturing. Amid the growing automotive electronics ecosystem, which is driving the demand for semiconductor chips, this launch should allow the company to…
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