10 Trending AI Stocks on Latest News and Ratings

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1. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 58

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor stock that offers semiconductor equipment and services used in the making of integrated circuits. One of the biggest analyst calls for Friday, January 17, was for Lam Research Corporation (NASDAQ:LRCX). KeyBanc analyst Steve Barger upgraded Lam Research to “Overweight” from Sector Weight with a $95 price target. The firm is focusing on companies involved in artificial intelligence-related devices and leading-edge transitions like gate-all-around and technologies that support improving device performance. The analyst also told investors in a research note that investor expectations and embedded return expectations have improved for the front-end semiconductor capital equipment names. Particularly for Lam Research, KeyBanc said that the semi-company has “immediate growth drivers”. Some of these growth drivers include the transition to new technologies and the rise of generative AI. With AI continuing to permeate industries, the demand for advanced semiconductors is also going to rise, in turn fueling Lam’s growth.

“We are upgrading AMAT & LRCX to OW from SW as we reposition our Semicap coverage toward immediate growth drivers including AI-related devices and leading edge technology transitions”.

While we acknowledge the potential of LRCX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LRCX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

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