Lam Research poised to benefit from AI industry growth, with stock price potential of doubling

Lam Research (NASDAQ: LRCX) is positioned to benefit from the booming artificial intelligence industry, with projected capital spending on chip-making equipment set to double by 2028. Despite Nvidia’s dominance, Lam’s role in manufacturing AI chips for industry giants like TSMC and Samsung makes it a key player in the market.

Although Lam’s stock has underperformed, potential growth opportunities exist. Revenue is forecasted to grow by about 22% in FY25, with the possibility of doubling if AI demand increases and export restrictions to China ease. This could lead to a stock price increase from $97 to over $200 per share.

While risks such as memory chip pricing pressures and geopolitical tensions exist, the long-term outlook for Lam remains positive. As the global semiconductor market is projected to exceed $1 trillion by 2030, Lam’s specialized equipment for next-gen technologies powering AI will continue to be in demand.

Investors looking to capitalize on Lam’s potential can consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed benchmark indices. The mix of large-, mid- and small-cap RV Portfolio stocks provides a responsive way to benefit from market conditions while managing risks effectively.

Read more at Nasdaq: Lam Research Stock To Double?