Lam Research Corp

Guinness Global Innovators Fund highlighted KLA Corporation as a notable contributor in its second-quarter 2026 investor letter. The fund holds three semiconductor equipment manufacturers, which were its top performers over the quarter: Applied Materials up 111.8% in USD, KLA up 105.2%, and Lam Research up 103.0%. KLA, the leader in process control and yield management, continues to play a critical role as semiconductor manufacturing becomes increasingly complex, with demand for its inspection and metrology tools structurally supported by the transition to advanced nodes, high-bandwidth memory and advanced packaging. The fund returned 13.8% in GBP for the quarter, compared with 13.0% for the MSCI World Index and 13.1% for the IA Global sector average.

Guinness Global Innovators Fund highlighted Lam Research Corporation as a top performer in its second-quarter 2026 investor letter, with the stock gaining 103.0% in USD during the quarter. The fund noted that Lam, which specializes in etch and deposition, has been supported by accelerating DRAM and high-bandwidth memory demand, resilient China revenues, and faster-than-expected growth in its high-margin services business. Management has repeatedly raised its outlook for global wafer fabrication equipment spending, framing the current cycle as supply-constrained rather than demand-constrained, and extended its elevated growth outlook into 2026 and 2027. Lam Research closed at $314.00 per share on August 21, 2026, with a market capitalization of $383.62 billion and a 52-week gain of 210.03%.

Lam Research announced plans to invest more than US$3 billion over five years to expand its global research and development lab network and increase experiment capacity. The announcement follows a strong run for the stock, with a year-to-date share price return of 69.67% and a one-year total shareholder return of 211.75%, though the seven-day return declined 8.68% and the 90-day return fell 2.69%. Based on the most followed narrative, Lam Research's fair value of $323.38 sits slightly above the recent $314 close, framing the new R&D spending as part of a longer-term earnings story. However, a discounted cash flow model from Simply Wall St estimates fair value at $169.91, well below the recent price.

Applied Materials reported fiscal third-quarter results that beat Wall Street estimates on revenue and adjusted profit, yet its shares fell nearly 5% in after-hours trading and kept sliding into August 14, 2026, while rival Lam Research saw its stock rise 6% after its own stronger-than-expected results on July 29, 2026. Applied Materials posted adjusted earnings of $3.50 a share versus the $3.40 expected and revenue up 25% year over year to $9.12 billion, topping the roughly $9 billion forecast, and guided fourth-quarter revenue to about $10.25 billion, above the $9.55 billion analysts expected. Investors punished the stock because they wanted clearer proof the company is outpacing rivals rather than falling behind them, with Summit Insights Group noting Applied's topline has lagged peers including ASML and Lam Research, and Morgan Stanley calling the quarter good but not great. Lam Research forecast first-quarter revenue of $8.10 billion, well above the $7.09 billion expected, and adjusted earnings of $2.15 a share versus the $1.83 Wall Street expected, and its prior quarter also beat with revenue of $6.72 billion and adjusted earnings of $1.82 a share. Applied Materials trades at 32.14 times forward earnings, a discount to Lam's 34.59 times, KLA's 36.85 times, and ASML's 33.39 times, and a $220 million unrealized investment loss dragged GAAP earnings per share below estimates even as the adjusted figure beat.

Bank of America lowered its price target on Applied Materials to $650 from $720 while keeping a Buy rating, citing slower sequential growth and a flatter margin outlook. The move follows a record fiscal third quarter in which revenue rose 25% year over year to $9.12 billion and non-GAAP EPS jumped 41% to $3.50. BofA noted Applied's quarterly guidance implies roughly 13% sequential growth versus about 20% for Lam Research, and it compressed its valuation multiple to 27 times estimated 2028 earnings from 36 times previously. The bank simultaneously raised its EPS estimates for 2026, 2027 and 2028 by 8%, 15% and 22%, respectively, while highlighting roughly 50% year-over-year DRAM growth and more than 70% advanced-packaging growth tied to AI infrastructure demand.

Polen Capital Management's Focus Growth Strategy identified Lam Research Corporation as its top-performing holding in the second quarter of 2026. The fund returned 6.33% net of fees during the quarter, significantly underperforming the Russell 1000 Growth Index's 16.74% gain, as the market rally remained narrowly focused on AI infrastructure and semiconductor stocks. Lam Research, a leading supplier of wafer fabrication equipment with strength in etch and deposition, reported record March-quarter revenue and earnings per share supported by AI-driven demand. Polen Capital repositioned the portfolio toward companies benefiting from structural growth in AI infrastructure, power demand, and aerospace, and remains confident in the long-term earnings potential of its holdings. Lam Research shares closed at approximately $326.11 on August 13, 2026, with a market capitalization of about $421.71 billion.

Lam Research Corporation plans to invest more than $3 billion over the next five years to expand its global research and development lab network. The semiconductor manufacturing equipment and services provider said the investment will increase its experiment capacity by over 50%. CEO Tim Archer said the company is investing to stay ahead of customer needs and strengthen its global innovation engine for next-generation semiconductor breakthroughs. Lam Research will begin expanding its lab network this year, which spans the U.S., Asia, and Europe and currently supports over one million experiments annually.

Semiconductor equipment stocks rose Thursday after SanDisk issued bullish multi-year financial targets at its 2026 Investor Day. SanDisk guided for revenue growth in the mid-to-high teens through fiscal 2030, non-GAAP gross margins of approximately 80%, operating margins around 75%, and adjusted free cash flow margin near 50%, with plans to return 100% of excess cash to shareholders. The company has signed New Business Model agreements with eight customers covering about 50% of bits in fiscal 2027 and roughly two-thirds in fiscal 2028, backed by committed volumes and minimum financial guarantees. Lam Research climbed about 4% as the most direct equipment beneficiary, Applied Materials rose about 1.5% ahead of its Q3 earnings report after the close, and Camtek was roughly flat after last week's sharp run. SanDisk shares jumped about 14% intraday.

Applied Materials stock has nearly tripled over the past year, returning 193% while the S&P 500 gained 21%, even as trailing twelve-month revenue grew just 3.3% to $29.02 billion. The repricing rests on a guide rather than trailing results, with management guiding fiscal Q3 2026 revenue to $8.95 billion plus or minus $500 million, up nearly 23% year over year, and committing to more than 30% growth in its semiconductor equipment business for calendar 2026. Clean room space and roughly 2,000 direct suppliers pace the ramp, with the company tracking over 100 factory projects globally and adding more than 10 in a single quarter. Leading-edge foundry logic, DRAM and advanced packaging should account for more than 80% of the year-on-year growth in total wafer fab equipment spending in 2026, with a similar profile in 2027. AMAT reports fiscal Q3 2026 results today after market close, and whether revenue lands inside the $8.95 billion band matters less than whether the calendar-2026 equipment growth still carries a more-than-30% number.

Lam Research is positioned to benefit from Taiwan Semiconductor's stronger AI-driven revenue growth, which has led the foundry to raise its 2026 outlook. Taiwan Semiconductor's increased expectations are tied to artificial intelligence workloads and advanced chip manufacturing, driving demand for semiconductor equipment suppliers like Lam Research. Lam Research provides tools used in producing high-performance AI chips, and the surge in AI spending at Taiwan Semiconductor signals potential gains for the company as a key equipment provider in that ecosystem.

The massive buildout of AI data centers is creating distinct investment opportunities across semiconductor equipment, real estate, energy, and cooling, according to experts interviewed by Fortune. Hyperscalers are projected to spend between $750 billion and $800 billion annually, with some forecasts reaching $1 trillion, representing 2.5% to 3% of U.S. GDP. In chips, B. Riley Securities analyst Craig Ellis recommends shifting focus from giants like Nvidia to equipment suppliers such as Applied Materials, Lam Research, and Marvell Technology, citing severe undersupply that will drive multi-year capex growth. For real estate, CenterSquare’s Patrick Wilson highlights data center REITs Equinix and Digital Realty as beneficiaries of the shift from AI training to inference, which favors urban facilities with low latency. Morningstar’s Andrew Bischof points to utilities like American Electric Power, which plans $78 billion in infrastructure investment through 2030, while New Constructs’ David Trainer sees value in traditional energy stocks such as Valero and HF Sinclair. In cooling, Morningstar’s Nick Lieb favors Vertiv for its dominant position in precision cooling, though notes concentration risk, and Eaton for its diversified exposure to the electrical grid. Some analysts warn that current spending levels may be unsustainable, with hyperscalers increasingly relying on debt and equity issuance.

Shares of chip equipment makers rose on Monday after Taiwan Semiconductor Manufacturing Company reported a 44.7% year-over-year revenue jump for July. ASML, Applied Materials, and Lam Research all moved higher, with ASML leading the gains. TSMC said its July revenue reached approximately $14.51 billion, a 5.6% increase from the prior month, and its January through July 2026 revenue totaled roughly $89.11 billion, up 37% from the same period in 2025. The world's largest chipmaker has been boosted by strong demand for semiconductors used in artificial intelligence, and last month it reported record second quarter revenue of $40.2 billion while raising its 2026 revenue growth forecast to more than 40%.

Bank of America, JPMorgan, and Oppenheimer analysts have named Palantir Technologies, Amazon, and Lam Research as their top AI stock picks following strong quarterly results. Bank of America’s Mariana Perez Mora reiterated a Buy on Palantir with a $255 price target after US commercial revenue surged 149% year over year, and the company raised full-year guidance to at least 134% US commercial revenue growth. JPMorgan’s Doug Anmuth raised Amazon’s target to $365 from $330, citing AWS revenue growth of 37% and a backlog that climbed to $496 billion. Oppenheimer’s Edward Yang kept a Buy on Lam Research with a $400 target, noting management raised its 2026 wafer fabrication equipment spending outlook to the low-$150 billion range and he increased 2027 and 2028 estimates by 7% to 9%.

On the afternoon of August 7, the semiconductor equipment sector saw a sudden surge. Xinqi Micro-Equipment hit the daily limit up, Lianxun Instruments soared over 7 percent, and Jingyi Equipment, Fuchuang Precision, and Helin Micro-Nano followed with gains. On the news front, SEMI forecasts that global semiconductor manufacturing equipment sales will grow for five consecutive years, reaching 165.9 billion US dollars in 2026, up 23.2 percent year-on-year, and potentially rising to 229.5 billion US dollars by 2028, an upward revision of nearly 30 percent from the end-2025 forecast. WSTS expects the global semiconductor market to reach 1.51 trillion US dollars in 2026, a staggering 90 percent year-on-year increase, breaking the trillion-dollar mark for the first time. Aijian Securities analysis suggests that AI capital expenditure is being transmitted along the industry chain to the equipment end. Lam Research estimates that every 100 billion US dollars in data center capital expenditure corresponds to roughly 9 to 10 billion US dollars in wafer fab equipment demand. Soochow Securities points out that HBM is driving a comprehensive upgrade in memory processes, with thin-film, etching, and metrology equipment together accounting for over 50 percent of memory equipment capital expenditure, and will fully benefit from this round of memory capacity expansion. South Korea's semiconductor exports in July surged 178.8 percent year-on-year to 41.01 billion US dollars, exceeding 40 billion US dollars for two consecutive months. GF Securities believes multiple clues confirm this high-boom cycle for semiconductor equipment, with test equipment giants like Teradyne and Advantest reporting better-than-expected results, further evidence that the AI-driven upcycle is likely to continue strengthening.

Tesla and SpaceX are moving forward with a $16.8 billion semiconductor complex in Grimes County, Texas, designed to reduce Elon Musk's dependence on outside chip suppliers. The vertically integrated Terafab facility will combine chip design, wafer production, memory, advanced packaging and testing in one location, aiming to produce more than one terawatt of AI computing capacity annually for Tesla vehicles, Optimus robots, SpaceX satellites and AI data centers. The project could create significant opportunities for semiconductor-equipment suppliers such as ASML, Applied Materials, Lam Research and KLA, with ASML already factoring expected Terafab demand into its future capacity plans. While the complex may give Musk's companies greater control over chip costs and supply, building an advanced factory at this scale carries major execution risks, and investors will monitor equipment orders, construction milestones and production timelines.

Zacks Investment Research featured Lam Research, The Cheesecake Factory, Vertiv, and Fortinet as promising growth-at-a-reasonable-price stocks. Lam Research guided for September 2026 quarter revenues of $8.1 billion with a non-GAAP operating margin of 39.5%, while its fiscal 2027 earnings consensus estimate rose 17.6% to $9.24 per share over the past 30 days. The Cheesecake Factory reiterated plans to open up to 26 new restaurants in fiscal 2026 and saw its 2026 earnings estimate increase 10.5% to $4.43 per share. Vertiv raised full-year 2026 guidance to approximately $14 billion in net sales and adjusted earnings of $6.65 to $6.75 per share, with its 2026 earnings estimate moving 3.6% higher to $6.64 per share. Fortinet lifted its full-year 2026 revenue growth target to 19%, implying $8.02 to $8.18 billion, and its 2026 earnings estimate advanced 8.3% to $3.40 per share.

Lam Research shares surged about 20% after reporting solid quarterly results and issuing guidance well above expectations. The company posted earnings of $1.82 per share versus the $1.70 consensus estimate, and guided next-quarter earnings to $2.15 per share, far exceeding the Street estimate of $1.84. Eric Bleeker of 24/7 Wall St. noted that the jump was amplified by how far the stock had fallen during July's selloff, and he views the results as good but not spectacular. He flagged valuation concerns, with shares trading a bit above 30 times forward earnings against a full-year estimate of $9.40, which he considers the upper end of the historical range. Bleeker remains bullish on the broader semiconductor equipment space, citing raised capex from Taiwan Semiconductor and optimistic signals from Intel, and he estimates 2028 equipment spending could come in roughly 25% above current Wall Street models, with particular interest in faster-growing sub-verticals like advanced packaging and testing.

A $10,000 investment in Lam Research made 10 years ago would be worth about $320,000 today, before counting dividends. With dividends reinvested, the total climbs to roughly $365,000, far outpacing the broad market. The return was driven by the chip industry's growing appetite for manufacturing equipment, with artificial intelligence demand pushing Lam's fiscal 2026 revenue up 26% to $23.2 billion and net income up 36% to about $7.3 billion. The stock recently jumped 18% to about $298 after record fiscal fourth-quarter results and guidance for September-quarter revenue of $8.1 billion. However, shares now trade at about 52 times fiscal 2026 earnings, a premium price for a cyclical business whose sales fell 14% as recently as fiscal 2024.

Equity investors are learning that not all artificial intelligence trades are created equal this earnings season. While S&P 500 firms are on track for a 29% surge in second-quarter earnings per share, the index has been flat since mid-July as traders penalized heavy AI spenders like Meta Platforms Inc. and Alphabet Inc., while rewarding Microsoft Corp. for preserving cash reserves. European stocks have fared better, with the Stoxx 600 advancing 1.3% as its members posted a 19% profit surge, benefiting from lower tech concentration. The semiconductor supply chain also saw gains, with Lam Research Corp., Schneider Electric SE and Prysmian SpA among outperformers on robust AI-enabling demand. Profit expectations continue to rise on both sides of the Atlantic, with US earnings revisions seeing net upgrades for 15 straight weeks, the longest streak since 2022.

Mizuho pushed back on concerns that Chinese memory maker CXMT will flood the DRAM market and crush pricing, telling investors the fear is overblown. TMT sector specialist Jordan Klein said the firm's Japan team estimated CXMT's DRAM bit supply growth will rise only 13% year over year in 2027, below the broader industry's 21%, leaving the company at roughly 8% of global share. That would put CXMT's 2026-2028 compound annual growth rate at 24%, in line with the overall DRAM industry, which Mizuho said points to no reckless supply expansion to try and take share with aggressive pricing. The firm cited constraints including Applied Materials and Lam Research suspending tool servicing on CXMT's existing equipment in March 2026, aging equipment due for a refresh, yield pressure from node transitions during 2027, and a lack of EUV lithography tools as a major constraint. Klein added that the Chinese government wants CXMT to allocate much more capacity toward high-bandwidth memory rather than conventional DRAM, and the company lags big time in HBM and is not selling to non-China hyperscalers, further limiting its impact on global pricing dynamics.

The Nikkei 225 surged on the 31st, closing at 64,362.02, up 2,494.59 points from the previous day. During the session it briefly rose to 65,364.73, reclaiming the psychologically important 65,000 level for the first time in four days. The rally followed strong earnings from Microsoft and Lam Research in the US market the previous day, which sparked buying in AI-related stocks, and that momentum carried over to Tokyo, where semiconductor and AI-related shares led the gains. In the South Korean market, Samsung Electronics and SK Hynix also soared, improving investor sentiment. On the other hand, the rapid advance prompted some selling to lock in profits, and a stronger yen amid speculation of currency intervention weighed on automakers and other shares, trimming the day's gains at times.

Lam Research shares surged approximately 18.9% in Thursday's regular-session trading after the semiconductor-equipment company issued stronger-than-expected quarterly guidance. The company forecast revenue of $8.1 billion, plus or minus $400 million, for the quarter ending September 27, well above the analyst consensus of approximately $7.09 billion. Adjusted earnings were projected at $2.15 per share, plus or minus $0.15, compared with the $1.83 estimate. Fiscal fourth-quarter revenue reached $6.72 billion, exceeding the $6.67 billion consensus, while adjusted earnings of $1.82 per share surpassed expectations of $1.68. The company supplies deposition, etching and cleaning systems to chipmakers including Taiwan Semiconductor Manufacturing and Samsung Electronics, and management cited expanding artificial-intelligence infrastructure as a driver of demand for advanced processors and memory.

The Nasdaq 100 surged 3.5% in afternoon trading, on pace for its strongest session since May 2025, driven by a blockbuster quarter from Microsoft and strong results from Lam Research that reinforced confidence in the artificial intelligence spending boom. Microsoft shares soared 16.6%, their best day since October 2008, contributing 73 basis points to the index's gain, while Lam Research jumped 18.5% after earnings and guidance exceeded expectations. Ten stocks accounted for 308 of the index's 351 basis points of gains, roughly 88% of the move from about a third of the index by weight, with Micron Technology, Advanced Micro Devices, and Intel also posting double-digit percentage advances. The rally removed fears that hyperscalers would struggle to monetize AI and that capital spending was slowing, spreading well beyond the two companies that reported. Amazon and Apple are set to report after the close, with attention on cloud capital spending and hardware margins.

Meta Platforms shares tumbled almost 10% in extended trading after the company reported earnings per share of $6.18, missing analysts' estimates by $1.04 per share, and forecast third-quarter revenue between $61 billion and $64 billion, the lower end of which is lighter than the $63.15 billion estimated by analysts. Microsoft shares rose about 3% after quarterly revenue of $90.01 billion topped estimates of $87.62 billion, with Azure growth of 43% at constant currency beating StreetAccount estimates of 40.2% growth, and the company said Azure revenue in the 2026 fiscal year surpassed $100 billion for the first time. Starbucks shares jumped 5% after the coffee retailer raised its full-year outlook and reported same-store sales growth of 7.9%, with adjusted earnings of 85 cents per share beating estimates of 66 cents per share and revenue of $9.32 billion exceeding the $9.16 billion expected. Carvana shares tumbled 14% after the online used-car retailer's full-year earnings guidance of between $2.7 billion and $3 billion missed Wall Street expectations, which included forecasts of $3 billion to $3.2 billion from Deutsche Bank and $4.45 billion from Morgan Stanley. Other notable movers included Fortinet soaring more than 11% on strong billings, Lam Research jumping more than 6% on better-than-expected results, and Qualcomm falling more than 5% on mixed quarterly results.

Lam Research Corporation shares appreciated as investors grew optimistic that AI-driven data-center spending would sustain robust demand for advanced semiconductor manufacturing equipment, while memory customers accelerated investments in high-bandwidth memory and DRAM capacity. The stock also benefited from improving semiconductor-industry fundamentals, strong earnings execution, and growing confidence that leading-edge logic and memory capital expenditures would remain elevated through 2026, supporting Lam's revenue and margin outlook. On July 27, 2026, Lam Research closed at $291.61 per share, with a one-month return of negative 32.70% and a 52-week gain of 194.73%, and a market capitalization of $364.68 billion. The Columbia Seligman Global Technology Fund highlighted Lam Research as one of its largest positions during the second quarter of 2026, a period in which the fund's Institutional Class shares returned 50.34%, outperforming the MSCI World Information Technology Index's 33.65% gain.

Lam Research Corporation shares continued to benefit from increased capital expenditure spending by its semiconductor clients, according to the Carillon Eagle Growth & Income Fund's second-quarter 2026 investor letter. The fund noted that demand for silicon and memory is at record highs with a very tight supply/demand dynamic, making the appetite for Lam Research's products unlikely to slow soon. Lam Research closed at $291.61 per share on July 27, 2026, with a one-month return of negative 32.70% but a 52-week gain of 194.73%. The company reported March quarter 2026 revenue of $5.84 billion, up 9% sequentially and 24% year-over-year. Hedge fund ownership rose to 123 portfolios at the end of the first quarter from 104 in the prior quarter.

Lam Research Corporation is poised to beat earnings estimates when it reports fourth-quarter fiscal 2026 results on July 29. The company expects revenues of $6.6 billion, plus or minus $400 million, while the Zacks Consensus Estimate is $6.67 billion, indicating 29% year-over-year growth. Earnings are expected at $1.65 per share, plus or minus 15 cents, and the consensus has been revised upward by a penny to $1.69 per share over the past 30 days, implying a 27% increase. A positive Earnings ESP of 1.38% and a Zacks Rank of 2 support the likelihood of an earnings beat. Lam Research shares have surged 90.1% year-to-date, outperforming the Zacks Electronics – Semiconductors industry's 35.2% rise, though the stock trades at a forward 12-month price-to-earnings ratio of 39.78, above the industry's 30.20.

Billionaire investor Philippe Laffont’s Coatue Management has concentrated its largest long positions on five US-listed stocks that together form a closed AI infrastructure loop spanning power, fabrication, tools, and custom silicon. The holdings, disclosed in a 13F filing as of March 31, 2026, include GE Vernova, Broadcom, Taiwan Semiconductor Manufacturing, Lam Research, and Applied Materials. GE Vernova booked $18.30 billion in orders in Q1 2026, up 71% organically, with $2.4 billion in data center equipment orders alone. Broadcom guided Q3 AI semiconductor revenue to $16 billion, up over 200% year-over-year, while Taiwan Semiconductor guided full-year 2026 revenue growth slightly above 40% and posted Q2 revenue of $40.20 billion. Lam Research delivered record revenue of $5.84 billion in its fiscal Q3, and Applied Materials posted record quarterly performance with $7.91 billion in revenue and expects its semiconductor equipment business to grow more than 30% in calendar 2026. Four of the five stocks are rated BUY by the article’s model, with GE Vernova cooling to HOLD after a 58.84% year-to-date run.

Lam Research has joined the AI Materials Foundry as a founding partner, linking the company to a new consortium that uses artificial intelligence and shared laboratories to discover semiconductor materials. The stock last closed at $319.29, slightly below a fair value estimate of $323.38, suggesting it is about 1% undervalued according to one narrative. However, a discounted cash flow model estimates a much lower fair value of $154.19, indicating potential overvaluation. The 30-day share price return is down 22.04%, while the one-year total shareholder return stands at 230.65% and the five-year total shareholder return at 429.68%.

Ichor Holdings is entering a stronger demand phase as semiconductor equipment spending improves and AI-related chip investment lifts activity in wafer fabrication. The company designs and manufactures fluid delivery subsystems and precision components for semiconductor capital equipment, with key customers including Lam Research and Applied Materials, which together accounted for 76% of 2025 revenues. AI infrastructure, advanced logic, and high-bandwidth memory are driving a favorable wafer fab equipment cycle that favors etch and deposition tools, where Ichor has significant exposure. Management is pursuing margin improvement through vertical integration, shifting manufacturing to lower-cost facilities in Mexico and Malaysia, and increasing proprietary content from 15% in 2024 to a target of 35% by the end of 2026. First-quarter 2026 results showed early operating leverage, with revenues rising 15% sequentially to $256.1 million and non-GAAP EPS reaching 15 cents, up from one cent in the prior quarter. Despite the improving business setup, ICHR currently carries a Zacks Rank #4 (Sell), reflecting weak near-term positioning over the one-to-three-month horizon, and its Style Scores show a mixed profile with a Momentum Score of B but a Value Score of F and a VGM Score of D.

Taiwan Semiconductor Manufacturing Company has raised its capital spending plans, sending a direct positive signal to semiconductor equipment makers. The company pledged an additional $100 billion in U.S. investment, bringing its total U.S. commitment to $265 billion, while also raising its growth outlook after reporting record Q2 revenue with sales rising 36% year over year on strong AI chip demand. Analysts named Applied Materials, ASML Holding, Lam Research, KLA Corporation, and MKS Instruments as direct beneficiaries of sustained tool demand tied to leading-edge nodes and advanced packaging. Applied Materials expects its semiconductor equipment business to grow more than 30% in calendar 2026, with export restrictions already incorporated into guidance. ASML is considering raising prices on its chipmaking tools despite pushback from TSMC, with China accounting for approximately 20% of total net sales and DUV tool demand particularly sensitive to export curb changes.

Lam Research Corporation shares have rallied as the semiconductor equipment maker benefits from strengthening tailwinds tied to AI infrastructure spending. NZS Capital highlighted the company in its second-quarter 2026 investor letter, noting that key chip manufacturing customers have publicly committed to higher capital expenditures to expand capacity. Lam Research, a critical supplier of etching equipment, was one of the top-five individual contributors to absolute returns in the NZS Growth Equity Strategy portfolio, which gained 24.96% gross in the quarter. The stock closed at $306.76 on July 20, 2026, with a market capitalization of $383.62 billion, and its shares have surged 214.01% over the past 52 weeks.

Zacks Equity Research featured new analyst reports on 16 major stocks, including Johnson & Johnson, Lam Research, Seagate Technology Holdings, and micro-cap companies KVH Industries and Dawson Geophysical. Johnson & Johnson beat Q2 estimates and sees higher second-half sales growth in both its Innovative Medicine and MedTech segments, though the Stelara patent cliff and Abiomed weakness remain headwinds. Lam Research posted record Q3 results and raised its calendar 2026 wafer fab equipment outlook, driven by AI-led demand for deposition and etch tools. Seagate raised its long-term outlook to at least 20% annual revenue growth, with Mozaic shipments reaching 75% of top cloud customers and full qualification expected this quarter. KVH Industries is transitioning to a recurring maritime connectivity platform with growing LEO adoption, while Dawson Geophysical is benefiting from stronger activity levels and an upgraded seismic equipment fleet.

Lam Research has joined the AI Materials Foundry as a founding partner, a new global initiative led by CuspAI that brings together more than 45 technology and industrial companies to accelerate advanced materials discovery for semiconductors using AI and shared lab resources. The collaboration focuses on improving access to critical materials at a time when rare metal supply and next-generation chip development are key industry issues. Lam Research's stock is trading around $313.3, down 5% over the past week and 19.5% over the past month, though still up 69.3% year to date. The company's participation in the consortium could influence how it accesses and helps shape future semiconductor materials, and investors may watch for concrete research programs, partnerships, and any disclosures around capital commitments.

Zacks Investment Research identifies Applied Materials, Lam Research, and FormFactor as three stocks to buy from the prospering semiconductor industry, all carrying a Zacks Rank #1 (Strong Buy). The industry is benefiting from surging AI demand that is expanding beyond model training into inference and agentic AI, driving sustained investments across leading-edge logic, DRAM, NAND, High-Bandwidth Memory, and advanced packaging. Applied Materials expects its semiconductor equipment business to grow more than 30% in calendar 2026, with its stock up 106.1% year to date and a fiscal 2026 earnings estimate of $12.14 per share. Lam Research sees its calendar 2026 wafer fabrication equipment outlook lifted by AI-driven tool demand, with shares up 83% year to date and a steady fiscal 2026 earnings estimate of $5.68 per share. FormFactor is poised for a record second quarter of 2026, driven by probe card demand for high-performance compute and advanced packaging, with its stock up 89.2% year to date and a 2026 earnings estimate of $2.40 per share. The Zacks Electronics - Semiconductors industry has returned 34.9% over the past year, outperforming the S&P 500's 8.8% gain, and currently trades at a forward price-to-earnings ratio of 28.28X.