10 Best Semiconductor Stocks to Buy According to Billionaires

4. Lam Research Corp. (NASDAQ:LRCX)

Number of Billionaire Investors: 20

Billionaire Holdings: $3.5 Billion

Number of Hedge Fund Holders: 84

Lam Research Corp. (NASDAQ:LRCX) is a leading semiconductor equipment manufacturer that provides wafer fabrication equipment and services to the semiconductor industry. The company’s innovative systems for wafer etching and deposition are essential for the advanced nodes of semiconductor technology, enabling the creation of smaller and more efficient integrated circuits.

Lam Research Corp. (NASDAQ:LRCX) is poised to benefit from rising demand for high-performance computing and AI applications. The company’s investments in advanced technologies like Gate-All-Around transistors and EUV patterning give it a competitive edge. Additionally, its per-bit cost reduction efforts enhance memory efficiency, thus positioning it for growth in the expanding semiconductor market.

In mid-February, Needham analyst Charles Shi reaffirmed his bullish outlook on Lam Research Corp. (NASDAQ:LRCX), maintaining a Buy rating with a price target of $96. His optimism stems from the company’s recently announced long-term financial targets for 2028 and 2030, which were presented at the 2025 Investor Day. While acknowledging potential risks, the analyst believes that the company is well-positioned to achieve its goals, even if upside potential remains somewhat constrained. A key highlight of the company’s strategy is its ambitious gross margin target of 50%, which he viewed positively. Additionally, the company’s disciplined approach to operational expenditures and conservative share buyback strategy are expected to drive earnings growth.