Investors should consider buying shares of Lam Research (LRCX) as the company is experiencing a turnaround driven by the demand for artificial intelligence (AI) chips. The Nasdaq-100 index has seen a surge in AI-related companies, and Lam Research has jumped 77% in the past year. The company's recent fiscal third-quarter results exceeded expectations, with revenue of $3. 79 billion and adjusted earnings of $7. 79 per share. Lam Research benefits from supplying manufacturing equipment to memory manufacturers, a market expected to grow due to the increasing demand for high-bandwidth memory used in AI chips.
The company's guidance for the current quarter suggests a return to top-line growth and a year-over-year revenue increase of 18%. Analysts predict a solid turnaround for Lam Research in the new fiscal year as well. With a lower forward earnings multiple compared to the Nasdaq-100, Lam Research has the potential for significant upside, potentially reaching a stock price of $1, 161, a 25% increase from current levels. Considering the potential for further growth, investors should act before the stock price goes higher.
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