LRCX Stock Forecast: Embracing Double-Digit Growth
This LRCX Stock Forecast article was written by Meiru Zhong – Financial Analyst at I Know First.Summary
- The decreased sales of wafer fabrication equipment (WFE) were mainly driven by the weakened customer demand, especially in the memory market, and trade restrictions on sales of specific products and services to China.
- By the end of the December quarter of 2023, LRCX earned a total revenue of $3.76 billion, reduced by 28. 8%. Its system revenue dropped by 35.2% and customer support-related revenue decreased by 15.7% compared with the last December quarter.
- The company differentiates products and services by focusing on multiple available market expansion opportunities and gets closer to customers by processing development capabilities near customers and manufacturing, including the Malaysia facility.
- Lam Research has outperformed and remained resilient in spite of the slowing economy, as the revenue growth rate is almost double the growth rate expected by the World Semiconductor Trade Statistics.
- DCF Values LRCX at $1,023, an upside potential of 8% compared with the stock price of $949.08 on March 20, 2024.
