Led by Nvidia and Broadcom, 10 stocks from the broad semiconductor sector etched a spot on this month's list of new buys by the best mutual funds. And while Nvidia and Broadcom grab much of Wall Street's focus, chip equipment maker Lam Research has jumped into buy range.
Lam Research also joins Nvidia and Broadcom on two other elite lists. In addition to all three making Investor's Business Daily's Big Cap 20, they've all earned a spot on IBD Leaderboard.
Lam Research Rides Demand For Semiconductor Stocks
Based in Fremont, Calif., Lam Research supplies wafer fabrication equipment to the major players in the semiconductor industry, including Nvidia, Broadcom, and Advanced Micro Devices.
With a stellar 98 Composite Rating, it ranks No. 1 among its peers in the semiconductor equipment group. KLA, which also made the latest list of new buys by top funds, hails from the same industry.
Including its latest report on July 30, Lam Research has posted average earnings growth of 39.6% over the last three quarters. Sales growth during that time accelerated from 16% to 34%. Revenue came in at over $5.1 billion in the latest fiscal quarter.
In the latest list of new buys by the best mutual funds, Lam Research took in $12.32 billion in capital inflows.
In another sign of demand, the stock earns a 1.3 up/down volume ratio. For that metric, any number above 1.0 points to demand.
Showing its high-quality institutional sponsorship, an impressive 257 funds with an A+ rating from IBD own shares of Lam Research stock.
| Company | Symbol | Industry Group | $ Amt Invested (mil) | Composite Rating |
|---|---|---|---|---|
| Lam Research | ELEC-SEMICNDCTR EQP | $12.32 | 98 | |
| KLA | ELEC-SEMICNDCTR EQP | 13.92 | 93 | |
| Astera Labs | ELEC-SEMICON FBLSS | 437.62 | 99 | |
| Broadcom | ELEC-SEMICON FBLSS | 1,435.08 | 99 | |
| Credo Technology | ELEC-SEMICON FBLSS | 53.67 | 99 | |
| Nvidia | ELEC-SEMICON FBLSS | 4,834.32 | 99 | |
| Rambus | ELEC-SEMICON FBLSS | 5.09 | 99 | |
| ACM Research | ELEC-SEMICNDCTR EQP | 0.33 | 76 | |
| Taiwan Semiconductor | ELEC-SEMICON MFG | 50.57 | 99 | |
| Macom Tech Solutions | ELEC-SEMICON MFG | 8.74 | 78 | |
See Which Stocks The Best Mutual Funds Are Buying
Chip Stock Etches New Buy Zone
While Nvidia and Broadcom continue to notch new highs, Lam Research briefly cleared a handle entry on Monday before easing back below it. But on Tuesday, the stock rose over 3% to pop back into the 102.59 – 107.72 buy zone.
The handle can be interpreted as part of a giant cup-with-handle base on a weekly chart. As the stock crafted the handle, the relative strength line has turned higher, a positive sign of market leadership.
Investors can also view Lam Research as approaching the 20% profit goal from a smaller and early stage cup-with-handle entry of 86.04.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
