Lam Research vs Applied Materials

Lam Research and Applied Materials are presented here to compare their business models, financial performance, and market context. This page outlines key strategic approaches, revenue drivers, product portfolios, and industry dynamics in a clear, neutral way. The aim is to inform readers with balanced context. Educational content, not financial advice.

Lam Research and Applied Materials are presented here to compare their business models, financial performance, and market context. This page outlines key strategic approaches, revenue drivers, product...

Comparison Snapshot

Key Financial Metrics

LRCX

Metric

AMAT

$296.58B

Market Cap

$260.66B

-28.84%

Potential Profit

-19.63%

Buy

Analyst Rating

Buy

Why It's Moving

Lam Research Hits 52-Week High as Analyst Upgrades Fuel Post-Earnings Surge

Q2 results crushed forecasts—EPS $1.27 vs. $1.17 expected, revenue $5.34B vs. $5.23B—underscoring strength in systems and memory markets.
Q3 guidance of $1.25–$1.45 EPS keeps momentum alive, with analysts like New Street lifting targets to $235, JPMorgan to $300, and Susquehanna to $325.
Broad upgrades yield 'Moderate Buy' consensus at $238 average target, as shares trade near $237 after peaking at $251.87.

Sentiment:

🐃Bullish

Wall Street rallies behind Applied Materials as analysts upgrade on surging chip equipment demand.

Mizuho upgraded to Outperform on January 27, raising price target to $370, driven by multi-year tailwinds in global WFE spending.
Deutsche Bank shifted to Buy on January 23 with a $390 target, highlighting favorable wafer fab trends through 2027 and attractive valuation versus peers.
Needham lifted target to $390 post-conference on January 20, citing robust semicap demand surge over recent months.

Sentiment:

🐃Bullish

Lam Research Hits 52-Week High as Analyst Upgrades Fuel Post-Earnings Surge

Q2 results crushed forecasts—EPS $1.27 vs. $1.17 expected, revenue $5.34B vs. $5.23B—underscoring strength in systems and memory markets.
Q3 guidance of $1.25–$1.45 EPS keeps momentum alive, with analysts like New Street lifting targets to $235, JPMorgan to $300, and Susquehanna to $325.
Broad upgrades yield 'Moderate Buy' consensus at $238 average target, as shares trade near $237 after peaking at $251.87.

Sentiment:

🐃Bullish

Wall Street rallies behind Applied Materials as analysts upgrade on surging chip equipment demand.

Mizuho upgraded to Outperform on January 27, raising price target to $370, driven by multi-year tailwinds in global WFE spending.
Deutsche Bank shifted to Buy on January 23 with a $390 target, highlighting favorable wafer fab trends through 2027 and attractive valuation versus peers.
Needham lifted target to $390 post-conference on January 20, citing robust semicap demand surge over recent months.

Sentiment:

🐃Bullish

Investment Analysis

Lam Research

LRCX

Pros

Lam Research reported a 23.68% revenue growth in 2025, reaching $18.44 billion, with earnings up nearly 40% to $5.36 billion.
The stock has significantly outperformed Applied Materials over the past 12 months, with a total return of +104%.
Lam Research has strong analyst support with an average consensus rating of 'Buy' from over 25 analysts.

Considerations

Despite strong earnings growth, the average analyst price target of $143.54 suggests a potential downside of over 11% from current levels.
The stock shows high price volatility with a beta of 1.84, indicating greater sensitivity to market fluctuations.
Recent insider selling, including from senior management, could imply concerns about future prospects.

Applied Materials

AMAT

Pros

Applied Materials holds a large market capitalization of $186 billion and displays strong liquidity with daily trading volume around 9 million shares.
The company has a moderate P/E ratio of 28.72 and pays a dividend yield of approximately 0.7%, offering some income to investors.
Institutional interest is increasing ahead of key earnings reports, as evidenced by raised price targets and positive coverage from analysts.

Considerations

Applied Materials’ share price has shown more modest growth over the past year, with a 21% return compared to Lam Research’s 104%.
The stock recently traded near its 52-week high but remains vulnerable to profit-taking and market corrections.
Continued exposure to cyclical semiconductor industry risks and competition may pressure margins and growth potential.

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