Billionaire Ray Dalio’s Bridgewater Is Crazy About These 15 Stocks

11. Lam Research Corporation (NASDAQ:LRCX)

Bridgewater Associates’ Stake Value as of Q3: $225.28 million

Number of Hedge Fund Holders: 58

Lam Research Corporation (NASDAQ:LRCX) is a leading technology company specializing in equipment and services essential for semiconductor manufacturing, a cornerstone for powering artificial intelligence. The company’s strategic edge stems from the rapid adoption of AI technologies, driving demand for its solutions.

Lam Research Corporation (NASDAQ:LRCX) commands a strong position in the semiconductor equipment market, particularly in the NAND segment, where it holds over 30% market share in capacity upgrades. This dominance positions the company advantageously as demand for memory solutions accelerates. The company’s edge is further reinforced by its focus on the “4 Horsemen” technologies: Gate All Around (GAA), Backside Power, Advanced Packaging, and Dry Resist, which are poised to drive growth beyond the pace of the overall wafer fabrication equipment market.

Deutsche Bank revised its outlook on Lam Research Corporation (NASDAQ:LRCX) on October 24, lowering the price target to $75 from $88 while maintaining a Hold rating. This adjustment followed the release of the company’s earnings report, which showed strong performance driven by robust demand for advanced DRAM technology, solid sales in China, and growth in its Customer Support Business Group, particularly in spares, services, and upgrades. While the short-term results exceeded expectations, Deutsche Bank flagged concerns about the 2025 outlook, noting a lack of detailed guidance and potential headwinds from an economic slowdown in China and a tepid recovery in other markets. The bank now projects Lam Research’s CY25 revenue growth at 10% year-over-year, down from its prior estimate of 16% and below the consensus forecast of 18%.

Artisan Partners mentioned Lam Research Corporation (NASDAQ:LRCX) in its Q2 2024 investor letter. Here is what the fund said:

“The top contributors to performance for the quarter were Alphabet, Lam Research Corporation (NASDAQ:LRCX) and Elevance. Lam Research shares rose 10% during the quarter and are up 67% over the past year, primarily due to optimism around the pending investment cycle in semiconductor capital expenditures. Lam is one of the largest equipment manufacturers used to make semiconductor chips. This equipment, commonly referred to as WFE (wafer fabrication equipment), is expected to experience significant growth due to a combination of a cyclical rebound in memory chips and growing demand for new AI-related chips. Lam’s product portfolio is particularly well positioned to benefit from both trends and should grow even faster than the overall market. Its shares now trade at ~30X prior peak earnings, which suggests this dynamic is well understood by the market and is mostly priced in.”