Stockchase Opinions

Jim Cramer - Mad Money Lam Research Corp LRCX-Q BUY ON WEAKNESS Sep 16, 2024

Is very oversold. Could be a coiled spring with 200 points up or 50 down. Has known this company for a long time.

$758.470

Stock price when the opinion was issued

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PARTIAL SELL

Is up 80% this year. Don't buy, but take profits. Likes it.

COMMENT

Equipment suppliers for semiconductor industry. Older school, cheaper than cutting-edge lithography companies. 12-month price target for LRCX of $1070, up 35% in last 100 days, great company, seems very competitive. Closest comparison would be to KLA.

BUY

There are probably 4 in this category of semiconductor equipment suppliers. LRCX does design, manufactures the equipment, refurbishes and services the equipment. 12-month price target of $1069, decent runway. Reports soon. Very conservative, so we won't get surprised. 

ASML using ultraviolet to etch chips has become the cat's meow, carving out a nice niche for EUVs. It's a bit cheaper. Reported last week, positive on top and bottom lines but lowered guidance. It sees demand coming back very strong in second half. Semis are a big thing with the AI revolution. Opportunity to buy a fantastic company at a cheaper price. 12-month price target of $1070.

For new money, put half in each.

BUY

They announced a 10-for-1 stock split and a major buyback last week. They reported strong numbers last April and shares were already up 20% for the year.

PARTIAL SELL

Take a bit off, and put proceeds into its competitor ASML.

BUY
Semiconductor opportunities.

Great opportunity to pick up 4 pillars. MU on the manufacturing, TSM for the foundry, LRCX or KLAC or ASML as the equipment suppliers, NVDA is a gift down here as a designer. And (he can't believe he's going to say this) even INTC; come 2025, it will be competitive with NVDA.

PAST TOP PICK
(A Top Pick Oct 25/23, Up 26%)

(Note 10 for 1 stock split October 3, 2024)

Got caught in the backwash of ASML. Reports tonight. He's on board with the analysts' average price target, getting close to being fully priced. Watch tonight when earnings come out, and listen for comparisons with ASML. Good support on the chart around $71. Next support after that is around $57. A great place to buy would be in low-mid $60s.

(Analysts’ price target is $92.75)
BUY

They will do well. They're not linked entirely to ASML. LRCX already said how much Chinese exposure they have and the reduced it.

BUY ON WEAKNESS

There's a semi cycle and a new business line. Anything AI-related in semis has rocketed, and anything not is in a typical downcycle. A good long-term hold.