35 Chip Stocks Powering AI Boom

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7. 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. This equipment is used by chipmakers in their chip manufacturing process. The demand for these chips has skyrocketed as firms seek to power their data centers with these chips for AI tasks. Timothy Archer, the CEO of Lam Research Corporation (NASDAQ:LRCX), commented during the second quarter earnings call that the power of AI as a transformative business tool was still yet to be fully realized. He noted that the focus on AI model training was driving strong demand for GPUs and HBM. He added that as AI use cases expanded, investments for AI-enabled edge devices would play particularly well to the strengths of his firm in the long term.

Lam Research Corporation (NASDAQ:LRCX) has attracted the attention of analysts on Wall Street. Raymond James recently raised the price target on the stock to $1,060 from $950 and kept an Outperform rating, backing SemiCap sector fundamentals to remain strong into 2025 due to secular growth from Gen AI, aggressive government subsidies around the world, multiple technology transitions, and intensifying competition among foundry suppliers.

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