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If You Invested $1000 in Lam Research a Decade Ago, This is How Much It'd Be Worth Now
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Lam Research (LRCX - Free Report) ten years ago? It may not have been easy to hold on to LRCX for all that time, but if you did, how much would your investment be worth today?
Lam Research's Business In-Depth
With that in mind, let's take a look at Lam Research's main business drivers.
Established in 1980 and headquartered in Fremont, CA, Lam Research Corporation supplies wafer fabrication equipment and services to the semiconductor industry.
Its products are used by semiconductor manufacturers in front-end and WLP processes, creating memory, microprocessors, and other logic integrated circuits for a broad range of electronic devices.
The MOS process of making integrated circuits involve the deposition of many layers of materials on a semiconductor wafer. Each layer is prepared using a pattern on a photomask, cleaning off the excess material and then exposing to light sources to change the chemical composition of the layer. The final wafer is then planarized, cut into individual die, electrical leads attached and packaged.
Lam's product offerings in deposition and etch address numerous critical steps in the fabrication process with the goal of reducing defect rates, improving yields, lowering costs and reducing the processing time.
Notably, Lam serves three market segments — Memory, Foundry and Logic/Other from where it generated 43.1%, 37.6% and 19.3% of its total revenues in fiscal 2023, respectively.
The revenue distribution by geography in fiscal 2023 was as follows — Korea contributed 20.4%, Taiwan 20%, Japan 10.1%, China 25.6%, U.S accounted for 9.6%, Europe 6.6% and South East Asia contributed 7.8%.
Being a leading producer of specialized equipment, most of the competition comes from other large equipment makers, such as KLA and Applied Materials, Inc.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Lam Research a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2014 would be worth $18,184.31, or a gain of 1,718.43%, as of April 15, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 182.17% and the price of gold increased 72.83% over the same time frame in comparison.
Going forward, analysts are expecting more upside for LRCX.
Lam Research is benefiting from strength across 3D DRAM and advanced packaging technologies. Growing etch and deposition intensity owing to increasing technology inflections in 3D architectures, is a positive. However, weakness in the systems business, primarily due to sluggish memory spending, is a major concern. The stock has underperformed the industry year to date. Although sluggish wafer fabrication equipment spending remains a concern, improvement in the outlook for the same owing to modest memory recovery, is a positive. For 2024, WFE spending is expected to be in the mid-high $80 billion range. NAND is expected to benefit from technology upgrades, while DRAM is likely to benefit from node conversions and capacity additions in HBM. Meanwhile, Lam Research's leading-edge investments are likely to benefit Foundry/Logic category.
The stock has jumped 5.16% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2024; the consensus estimate has moved up as well.
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If You Invested $1000 in Lam Research a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Lam Research (LRCX - Free Report) ten years ago? It may not have been easy to hold on to LRCX for all that time, but if you did, how much would your investment be worth today?
Lam Research's Business In-Depth
With that in mind, let's take a look at Lam Research's main business drivers.
Established in 1980 and headquartered in Fremont, CA, Lam Research Corporation supplies wafer fabrication equipment and services to the semiconductor industry.
Its products are used by semiconductor manufacturers in front-end and WLP processes, creating memory, microprocessors, and other logic integrated circuits for a broad range of electronic devices.
The MOS process of making integrated circuits involve the deposition of many layers of materials on a semiconductor wafer. Each layer is prepared using a pattern on a photomask, cleaning off the excess material and then exposing to light sources to change the chemical composition of the layer. The final wafer is then planarized, cut into individual die, electrical leads attached and packaged.
Lam's product offerings in deposition and etch address numerous critical steps in the fabrication process with the goal of reducing defect rates, improving yields, lowering costs and reducing the processing time.
Notably, Lam serves three market segments — Memory, Foundry and Logic/Other from where it generated 43.1%, 37.6% and 19.3% of its total revenues in fiscal 2023, respectively.
The revenue distribution by geography in fiscal 2023 was as follows — Korea contributed 20.4%, Taiwan 20%, Japan 10.1%, China 25.6%, U.S accounted for 9.6%, Europe 6.6% and South East Asia contributed 7.8%.
Being a leading producer of specialized equipment, most of the competition comes from other large equipment makers, such as KLA and Applied Materials, Inc.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Lam Research a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2014 would be worth $18,184.31, or a gain of 1,718.43%, as of April 15, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 182.17% and the price of gold increased 72.83% over the same time frame in comparison.
Going forward, analysts are expecting more upside for LRCX.
Lam Research is benefiting from strength across 3D DRAM and advanced packaging technologies. Growing etch and deposition intensity owing to increasing technology inflections in 3D architectures, is a positive. However, weakness in the systems business, primarily due to sluggish memory spending, is a major concern. The stock has underperformed the industry year to date. Although sluggish wafer fabrication equipment spending remains a concern, improvement in the outlook for the same owing to modest memory recovery, is a positive. For 2024, WFE spending is expected to be in the mid-high $80 billion range. NAND is expected to benefit from technology upgrades, while DRAM is likely to benefit from node conversions and capacity additions in HBM. Meanwhile, Lam Research's leading-edge investments are likely to benefit Foundry/Logic category.
The stock has jumped 5.16% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2024; the consensus estimate has moved up as well.