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.
The firm operates in the deeply cyclical semiconductor equipment industry.
Lam has been unable to win any business from the world's largest chipmaker, Intel. Read more 

Management

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

Profile

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 

3 Utilities Moving Into Wide-Moat Territory 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.