The Latest Breaking News from Lam

Wall Street just issued big upgrades on several notable chip stocks. LRCX's strong upside potential and MPWR's history of beating forecasts are key takeaways.

Artificial intelligence chip stocks including NVIDIA Corp. (NASDAQ:NVDA), Advanced Micro Devices Inc (NASDAQ:AMD), Broadcom Inc (NASDAQ:AVGO), Arm Holdings PLC-ADR (NASDAQ:ARM), Marvell Technology Inc (NASDAQ:MRVL), Micron Technology Inc (NASDAQ:MU), Lam Research Corp (NASDAQ:LRCX), Taiwan Semiconductor Manufacturing Co (NYSE:TSM), Super Micro Computer Inc (NASDAQ:SMCI) are trading lower on Friday as the Trump…

Semiconductor equipment stocks, including KLA and Lam, have been on the upswing lately amid an improving outlook for the sector.

While Lam Research has underperformed the broader market over the past year, Wall Street analysts maintain a moderately optimistic outlook on the stock’s prospects.

If Lam Research continues to build on its quarterly results, the current ceiling for LRCX stock may be a floor that lifts the stock, and possibly the sector

These chip stocks have been under pressure this year. However, current levels present a favorable risk-reward scenario for investors.

Three often-overlooked semiconductor names may be a better bet for investors concerned about NVDA's share price decline in recent weeks.

While Lam Research’s outperformance compared to the S&P 500 Index on a YTD basis, Wall Street analysts remain cautiously optimistic about the stock’s prospects.

This under-the-radar company could benefit significantly from the growth of the AI-driven semiconductor industry.