Goldman Sachs’ 35 AI Superstars

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20. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 58 

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. This company is an exceptional investment option for various reasons. For example, as illustrated in the report for the third quarter of 2024, reported revenue was $4,168 million, gross margin was $2,003 million, operating expenses were $738 million, operating income was 30.3% of revenue, and net income was $1,116 million, or $0.86 per diluted share on a US GAAP basis. These metrics reflect the company’s solid profitability from its core operation and its operational efficiency. Moreover, the company has joined RE100, an initiative composed of influential businesses around the world with a goal of achieving 100% renewable electricity in their operations.

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