Lam Research Corp (LRCX)

Up 36% last month. He believes in the semis capital equipment makers. Once more capacity comes online, this space will get hit, but he guess late 2027 or early 2028.

Will benefit from memory and logic buildouts, two areas she expects to see near-term upside. ASML reported very strong results, which bodes well for LRCX. Headwinds over past 2 years, now at inflection point. Pricing power. Revenue really starting to inflect upward. Sees significant earnings upside. Yield is 0.43%.

Best in class, but can't buy now after a parabolic move.

It has a couple of challenges and are going to pay a higher price for the tools.. You don't want to buy into a sector when it has had such a big run. Wait for a correction. He prefers Applied.

Has been doing really well. Making new all-time highs today.

Just bought it. Semis were the most punished class when tariffs hit earlier this year. The impact hit semis equipment companies like this, but it hit its 52-week high in July. He prefers buying names that have recently made highs, not months ago (like Applied Materials). Momentum has returned to the semis.

In the semi space, his firm tends to stay with a select few names that are best exposed to AI. That doesn't include the equipment makers, who are in a tricky situation. So many headlines involve the US trying to clamp down on China's access to everything related to semiconductors. Part of China's response to that was to buy up as much non-advanced-edge chip equipment as it could. An overhang going forward.

See his Past Top Picks for a name he likes a lot more.

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.

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

(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.

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

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.

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

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.