Stephanie Link, Chief investment strategist, HightowerLam Research CorpLRCXBUYJan 23, 2023
At 13x PE, slower sales are already built into shares. Semis could bottom in Q2, so maybe getting into semis is early, but the second half of 2023 will be too late to but these.
Worries her a little because peers like Micron are reporting lower numbers, but expectations here are low. She trimmed a few weeks ago. Inventories still need to bottom in the next quarter or two.
Really likes this. You can't make semis without the equipment that makes semis. True, this is subject to cylicality like the semis, but Lam's equipment is critical. Long-term, it's a good stock, but there's slowing momentum in semis ahead. But that would lead to an entry level.
They're an equipment supplier among semiconductors. Lam competes with ASML and Applied Materials, both of which he likes. The runway is still going out well into 2023 for these companies, given strong demand (more demand than supply for the next 2 or so years).
(A Top Pick Aug 31/21, Up 3.3%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with LRCX has triggered its stop at $625. To remain disciplined, we recommend covering the position at this time.
(A Top Pick Aug 31/21, Up 18.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LRCX is progressing well. We now recommend trailing up the stop (from $550) to $625.
(A Top Pick Aug 31/21, Up 9.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LRCX is progressing well. We now recommend trailing up the stop (from $485) to $550.
LRCX vs. AMAT Semis are in a structural, secular bull market. Most economically sensitive part of tech. Both are attractive. He owns LRCX, but he could own either. LRCX has pulled back 10% off the highs but is making a turn. Expects demand to continue to be pretty robust, especially as the size is moving down and we need more capacity.
Has long liked this. They report Wednesday. Semis worrlwide remain in short supply, and it doesn't help that Beijing is threatening Taiwan, home of Taiwan Semiconductor which delivered a great quarter this week and sparked a chip rally.