Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch

3. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 84

Cramer likes Lam Research Corporation (NASDAQ:LRCX) and commented that the stock should not have suffered.

“And the answer about Lam Research is, I like it very much here. LRCX should not have gone down today. I think it’s doing extraordinarily well. And it’s not just linked entirely with what ASML is. They already told you how much Chinese exposure they have and they’ve had to cut it back. So the answer is I would buy it.”

Lam Research (NASDAQ:LRCX) operates in the semiconductor industry, focusing on the design, manufacturing, marketing, refurbishment, and servicing of equipment used in the production of integrated circuits. On October 23, it revealed its fiscal first quarter results. Following the announcement, Lam’s stock experienced an upward movement, providing a sense of relief to investors after ASML reported disappointing results.

For the quarter, the company reported adjusted earnings of 86 cents per share on revenue totaling $4.17 billion. These figures exceeded the expectations set by analysts surveyed by FactSet, who had expected earnings of 81 cents per share and revenue of $4.01 billion. During the earnings call, Chief Financial Officer Douglas Bettinger noted that 37% of the company’s revenue for the quarter came from China, a slight decrease from 39% in the previous quarter.

Bettinger mentioned that the figure was more favorable than what the company had initially projected. Lam Research (NASDAQ:LRCX) management indicated expectations for a decline in domestic China Wafer Fabrication Equipment in the second half of the fiscal year when compared to the first half. Additionally, the company’s revenue derived from China is expected to normalize to around 30% in the upcoming December quarter.