Lam Research is a key global supplier of wafer fabrication equipment/services for the semiconductor industry.
Growth in the internet of things and cloud computing creates ongoing demand for Lam's products.
Advancing technology demands the 3D design solutions that Lam Research offers.
As a global supplier of wafer fabrication equipment, Lam Research (LRCX) is poised to see higher demand for their products/services as the need for 3D designs and multiple patterning overcomes the challenges from 2-dimensional scaling. The growth in the internet of things [IoT] and cloud computing is creating the need for more advanced semiconductors. Lam Research provides the equipment/services to make that happen.
From an investment perspective, Lam Research is a good combination of dividends and growth. The stock yields 2%, but it has a good chance of achieving above-average stock price appreciation due to double-digit revenue and earnings growth, which is expected to return in FY2021 (July 2020 through June 2021).
The article is for informational purposes only (not a solicitation to buy or sell stocks). David is not a registered investment adviser. Kirk Spano is an RIA. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.
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