Morningstar Rating

Stock Research and Analysis

by Peter Wahlstrom, CFA

Bulls Say

Lam is a leader in the etch and deposition markets and counts major chipmakers, such as Samsung and Toshiba, as customers.
Lam has an excellent operating model. The use of outsourcing has improved profitability and provides a variable cost structure for better responsiveness to industry downturns.
Demand is strong for new equipment technologies and materials--copper and low-k dielectrics--because they help chipmakers produce cheaper, faster, smaller chips. Read more 

Bears Say

Lam faces major competition from Applied Materials and Tokyo Electron and would lose market share should it lose its technological edge to either firm.
The firm operates in the deeply cyclical semiconductor equipment industry.
The recent wave of consolidation in wafer fabrication equipment customers could have a negative impact on companies such as Lam that sell a wide array of tools. Read more 


Martin Anstice became CEO in January 2012, taking over for Stephen Newberry, who remains chairman. Anstice joined Lam in 2001 and has served as CFO and COO during his tenure. CFO Doug Bettinger joined Lam in February 2013, taking over for Ernest Maddock.  Read more 


Lam Research manufactures equipment used to fabricate semiconductors. The firm is focused on the etch market, which is a key step in the semiconductor manufacturing process.  Read more 

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