We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How Much You'd Have If You Invested $1000 in Lam Research a Decade Ago
Read MoreHide Full Article
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Lam Research (LRCX - Free Report) ten years ago? It may not have been easy to hold on to LRCX for all that time, but if you did, how much would your investment be worth today?
Lam Research's Business In-Depth
With that in mind, let's take a look at Lam Research's main business drivers.
Established in 1980 and headquartered in Fremont, CA, Lam Research Corporation supplies wafer fabrication equipment and services to the semiconductor industry. Its products are used by semiconductor manufacturers in front-end and WLP processes, creating memory, microprocessors, and other logic integrated circuits for a broad range of electronic devices.
The MOS process of making integrated circuits involve the deposition of many layers of materials on a semiconductor wafer. Each layer is prepared using a pattern on a photomask, cleaning off the excess material and then exposing to light sources to change the chemical composition of the layer. The final wafer is then planarized, cut into individual die, electrical leads attached and packaged.
Lam's product offerings in deposition and etch address numerous critical steps in the fabrication process with the goal of reducing defect rates, improving yields, lowering costs and reducing the processing time.
In fiscal 2020, Lam served three market segments—Memory, Foundry and Logic/Integrated device manufacturing which generated 61% (down from 78% in 2019), 29% (up from 14% in 2019) and 10% (up from 8% in 2019), of its revenues, respectively.
The revenue distribution by geography in fiscal 2020 was as follows —Korea 32% (up from 14% in 2019), Taiwan 11% (down from 13% in 2019), Japan 8% (down from 17% in 2019), China 34% (up from 16% in 2019), U.S accounted for 7% (down from 7% in 2019), Europe 3% (down from 5% in 2019) and South East Asia accounted for 5% ( down from 7% in 2019).
Being a leading producer of specialized equipment, most of the competition comes from other large equipment makers, such as KLA-Tencor Corporation and Applied Materials, Inc.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Lam Research a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2011 would be worth $11,779.98, or a gain of 1,078%, as of April 21, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 210.81% and the price of gold went up 13.64% over the same time frame.
Analysts are anticipating more upside for LRCX.
Lam Research is riding on broad-based secular growth across data transport, analysis and storage. Further, increasing NAND requirement in accelerating 5G migration, video, and new game consoles is driving the top-line growth of the company. Further, persistent Foundry strength remains a major positive. Also, advanced packaging technology inflections are other positives. Additionally, Lam Research has been benefiting from the transition to new data-enabled economy, wherein DRAM and NAND are continuously gaining from density growth. Also, both etch and deposition technologies are expected to expand the company’s addressable market. The stock has outperformed its industry over a year. However, uncertainty due to the coronavirus outbreak remains a concern. Further, the ongoing U.S.-China trade war and foreign currency fluctuations are overhangs.
Over the past four weeks, shares have rallied 11.02%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's How Much You'd Have If You Invested $1000 in Lam Research a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Lam Research (LRCX - Free Report) ten years ago? It may not have been easy to hold on to LRCX for all that time, but if you did, how much would your investment be worth today?
Lam Research's Business In-Depth
With that in mind, let's take a look at Lam Research's main business drivers.
Established in 1980 and headquartered in Fremont, CA, Lam Research Corporation supplies wafer fabrication equipment and services to the semiconductor industry. Its products are used by semiconductor manufacturers in front-end and WLP processes, creating memory, microprocessors, and other logic integrated circuits for a broad range of electronic devices.
The MOS process of making integrated circuits involve the deposition of many layers of materials on a semiconductor wafer. Each layer is prepared using a pattern on a photomask, cleaning off the excess material and then exposing to light sources to change the chemical composition of the layer. The final wafer is then planarized, cut into individual die, electrical leads attached and packaged.
Lam's product offerings in deposition and etch address numerous critical steps in the fabrication process with the goal of reducing defect rates, improving yields, lowering costs and reducing the processing time.
In fiscal 2020, Lam served three market segments—Memory, Foundry and Logic/Integrated device manufacturing which generated 61% (down from 78% in 2019), 29% (up from 14% in 2019) and 10% (up from 8% in 2019), of its revenues, respectively.
The revenue distribution by geography in fiscal 2020 was as follows —Korea 32% (up from 14% in 2019), Taiwan 11% (down from 13% in 2019), Japan 8% (down from 17% in 2019), China 34% (up from 16% in 2019), U.S accounted for 7% (down from 7% in 2019), Europe 3% (down from 5% in 2019) and South East Asia accounted for 5% ( down from 7% in 2019).
Being a leading producer of specialized equipment, most of the competition comes from other large equipment makers, such as KLA-Tencor Corporation and Applied Materials, Inc.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Lam Research a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2011 would be worth $11,779.98, or a gain of 1,078%, as of April 21, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 210.81% and the price of gold went up 13.64% over the same time frame.
Analysts are anticipating more upside for LRCX.
Lam Research is riding on broad-based secular growth across data transport, analysis and storage. Further, increasing NAND requirement in accelerating 5G migration, video, and new game consoles is driving the top-line growth of the company. Further, persistent Foundry strength remains a major positive. Also, advanced packaging technology inflections are other positives. Additionally, Lam Research has been benefiting from the transition to new data-enabled economy, wherein DRAM and NAND are continuously gaining from density growth. Also, both etch and deposition technologies are expected to expand the company’s addressable market. The stock has outperformed its industry over a year. However, uncertainty due to the coronavirus outbreak remains a concern. Further, the ongoing U.S.-China trade war and foreign currency fluctuations are overhangs.
Over the past four weeks, shares have rallied 11.02%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.