Lam Research is the IBD Stock Of The Day as investments in artificial intelligence are seen boosting sales of semiconductor equipment from Lam and others. LRCX stock is in a bullish three-weeks-tight pattern.
Lam Research along with chip-gear industry peers Applied Materials, ASML and KLA are bouncing off their 21-day exponential moving average lines.
On Thursday, LRCX stock rose above a recent pullback, offering a buy point at 615.80. Also, a move above its June 14 high of 630.72 would offer an early entry within a three-weeks-tight chart pattern, based on IBD analysis.
On the stock market today, LRCX stock rose 2.3% to close at 619.87.
Lam Research Riding 'AI Wave'
Barclays analyst Blayne Curtis on Tuesday raised his price target on LRCX stock to 575 from 475 but kept his equal-weight, or neutral, rating.
The "AI wave" will boost spending on leading-edge semiconductor capital equipment, lifting sales for Lam as well as Applied Materials and KLA, Curtis said.
"We still believe the semi cap correction is not over, but it's not often $150 billion falls into the model," he said in a note to clients. "We now model double-digit growth in the AI market through the end of the decade, reaching $100 billion in 2027, still short of AMD's recent $150 billion forecast."
On April 19, Lam Research topped Wall Street's targets for its fiscal third quarter but disappointed with its outlook for the current period.
LRCX Stock On Two IBD Lists
Lam Research ranks seventh out of 29 stocks in IBD's semiconductor equipment industry group, according to IBD Stock Checkup. LRCX stock has an IBD Composite Rating of 95 out of 99.
IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
IBD's semiconductor equipment group ranks No. 18 out of 197 industry groups. Growth stock investors should focus on the leading stocks in the top 40 industry groups, based on IBD guidelines.
LRCX stock is on the IBD Tech Leaders list. Plus, on Thursday, IBD added it to SwingTrader.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
