20 Under The Radar AI Stocks

3.  Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 84  

Lam Research Corporation (NASDAQ:LRCX) markets semiconductor processing equipment. The company is the leading provider of etching equipment to the semiconductor industry. The stock has a high return on invested capital and exhibits potential for more than 10% sales growth in the coming months. There are also other positives to the shares. For example, there is a high likelihood of a rebound in memory prices in the next year as demand rises due to AI data center needs. This could translate to 30% upside in the current cycle peak EPS. The sell off in the tech sector over the past few weeks has also priced the shares favorably.

Following a stellar earnings report by Lam Research Corporation (NASDAQ:LRCX), Wall Street analysts have been fawning over the stock. TD Cowen recently raised the price target on the stock to $1,050 from $1,000 and kept a Buy rating, noting that the top line results and outlook for the chipmaker remain stable as better near-term foundry/logic spend was balancing slightly mixed memory trends.