ASML vs Lam Research

Explore a detailed comparison between ASML Holding NV and Lam Research Corporation. This page examines their respective business models, evaluates their financial performance, and analyses their market context, providing insights into these key players in the semiconductor industry. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

ASML

Metric

LRCX

$540.73B

Market Cap

$279.93B

-23.23%

Potential Profit

-29.13%

Buy

Analyst Rating

Buy

Why It's Moving

ASML Bucked Market Dip Amid Earnings Anticipation and AI-Driven Bookings Boom

Net bookings hit €5.54 billion, powered by AI chipmakers, highlighting resilient demand for ASML's cutting-edge machines.
Upcoming Q4 earnings project EPS of $8.85 (up 21%) and revenue of $11.06 billion (up 12%), underscoring AI momentum.
Positive analyst notes from Morgan Stanley and HSBC bolster conviction, countering tariff uncertainty for 2026 growth.

Sentiment:

🐃Bullish

Lam Research Surges on AI Tailwinds and Analyst Upgrades Ahead of Earnings.

Zacks upgraded LRCX to Strong Buy, highlighting rising earnings estimates and AI-chip plus DRAM demand poised to drive Q2 beats.
Recent Q1 earnings delivered $1.26 EPS, topping expectations by 3.28%, with $5.32B revenue underscoring sustained semiconductor strength.
Bank of America hiked its price target to $245 with a buy rating, reflecting optimism on margin expansion and capital returns in the AI WFE cycle.

Sentiment:

🐃Bullish

ASML Bucked Market Dip Amid Earnings Anticipation and AI-Driven Bookings Boom

Net bookings hit €5.54 billion, powered by AI chipmakers, highlighting resilient demand for ASML's cutting-edge machines.
Upcoming Q4 earnings project EPS of $8.85 (up 21%) and revenue of $11.06 billion (up 12%), underscoring AI momentum.
Positive analyst notes from Morgan Stanley and HSBC bolster conviction, countering tariff uncertainty for 2026 growth.

Sentiment:

🐃Bullish

Lam Research Surges on AI Tailwinds and Analyst Upgrades Ahead of Earnings.

Zacks upgraded LRCX to Strong Buy, highlighting rising earnings estimates and AI-chip plus DRAM demand poised to drive Q2 beats.
Recent Q1 earnings delivered $1.26 EPS, topping expectations by 3.28%, with $5.32B revenue underscoring sustained semiconductor strength.
Bank of America hiked its price target to $245 with a buy rating, reflecting optimism on margin expansion and capital returns in the AI WFE cycle.

Sentiment:

🐃Bullish

Investment Analysis

ASML

Pros

ASML holds unrivalled position in high-NA EUV lithography essential for advanced AI chips.
Recent earnings beat estimates with net margin of 27% and return on equity of 48%.
Broker upgrades cite strong 2026-27 equipment demand from DRAM supercycle and AI growth.

Considerations

China revenue expected to decline sharply in 2026 due to geopolitical restrictions.
High P/E ratio of 52 indicates premium valuation amid uncertain short-term demand.
Consensus forecasts only 5% earnings growth for 2026 with modest revenue expansion.

Lam Research

LRCX

Pros

Lam Research benefits from surging wafer fab equipment demand driven by AI chip production.
Strong balance sheet supports sustained R&D investment in etch and deposition technologies.
Diverse customer base including TSMC and Intel provides resilience against single-market risks.

Considerations

Exposure to semiconductor cyclicality heightens vulnerability to industry downturns.
High valuation reflects risks from potential overcapacity in memory and logic segments.
Geopolitical tensions limit expansion in China, a key market for wafer fabrication equipment.

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