It's no secret that Lam Research is a brilliant business, but after underperforming significantly in 2024, it might now be the best-priced semiconductor stock out there!
China revenues won't drop away instantly. This should decline gradually as more export restrictions are imposed in future years. Meanwhile, demand from Western regions like South Korea, Taiwan, Japan, the US, and Europe is expected to increase as more and more fabs are being opened here, which drives demand.
As a result, while the loss of revenue is never great, I don't see it as too much of a revenue growth hit. However, lesser dependence on China is a big positive at this time.
I was looking for a play in the semiconductor industry that was not overpriced and with good long term growth and LRCX might be the one. Good insight from you and great read. I will research more on them. Thank you
I don't get you point, when you said that an expected China revenues decline could be positive by recovering in other regions.
The China revenue represent ~37%. How would they replace this demand?
Thanks
China revenues won't drop away instantly. This should decline gradually as more export restrictions are imposed in future years. Meanwhile, demand from Western regions like South Korea, Taiwan, Japan, the US, and Europe is expected to increase as more and more fabs are being opened here, which drives demand.
As a result, while the loss of revenue is never great, I don't see it as too much of a revenue growth hit. However, lesser dependence on China is a big positive at this time.
Does that answer your question?
I was looking for a play in the semiconductor industry that was not overpriced and with good long term growth and LRCX might be the one. Good insight from you and great read. I will research more on them. Thank you
Appreciate it! Good luck with the further research.
Thanks for this in-depth look, they're on my watchlist now.
Appreciate it, Joel! Glad you found some value in this piece.