Bull of the Day: Lam Research (LRCX)

With extremely defensible technologies, Lam Research is among the leading semiconductor stocks in the market today.

Few companies occupy as unique and valuable a position as Lam Research $LRCX (LRCX), yet it remains relatively underfollowed by the general public. The company holds a near-duopoly position in two critical segments of the semiconductor manufacturing process: etch equipment and deposition.

Etch equipment is Lam’s core strength, involving the technology that etches intricate patterns into silicon wafers. These architectures form the interface between computing systems and end users, and their growing complexity continues to drive significant tailwinds for Lam’s business. Within this category, high-aspect-ratio etch, essential for emerging 3D NAND, or layered semiconductors, is becoming increasingly important. Lam’s leadership in this area is particularly dominant and difficult to replicate.

Deposition, including both chemical vapor deposition (CVD) and atomic layer deposition (ALD), is another key pillar. This process involves depositing thin films of material onto wafers, and the industry’s shift toward 3D structures, continues to increase the number of deposition steps required per wafer.

As demand for leading-edge semiconductors continues to grow, driven not only by AI but also by the broader proliferation of digital technologies, Lam Research appears........

© Quartz