35 AI Superstars According to Goldman Sachs

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16. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 84 

Lam Research Corporation (NASDAQ:LRCX) markets semiconductor processing equipment. The company is the third leading supplier of wafer fab equipment in the world. Within the semi space, the company focuses on submarkets of deposition and etch. These entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. In the latter, the company holds the top market share, and in the former, it has the second largest share. The overall business of the chipmaker is more exposed to memory chipmakers for DRAM and NAND chips. Some of the top customers of Lam include the largest chip makers in the world, including TSM, Samsung, Intel, and Micron.

Lam Research Corporation (NASDAQ:LRCX) fundamentals remain as compelling as ever. The firm posted a 20.71% revenue growth rate in the fourth fiscal quarter, reflecting a substantial increase in top-line earnings compared to peers in the information technology sector. It also has an impressive net margin of close to 27%, showing strong profitability and effective cost control. The return on equity hovers around 12.3%, highlighting efficient use of equity capital.

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