LRCX - Lam Research Corporation

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
+1.52 (+0.48%)
As of 11:12AM EDT. Market open.
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Commodity Channel Index

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Performance Outlook
  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
Previous Close317.48
Bid320.97 x 1000
Ask321.21 x 800
Day's Range318.88 - 326.50
52 Week Range178.92 - 344.32
Avg. Volume2,242,866
Market Cap46.307B
Beta (5Y Monthly)1.34
PE Ratio (TTM)22.96
Earnings DateN/A
Forward Dividend & Yield4.60 (1.45%)
Ex-Dividend DateJun 16, 2020
1y Target EstN/A
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
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26% Est. Return
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    Lam Research Jumps With Chips

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  • U.S.-China Feud Gets Nasty With Red Tape as Stealth Weapon

    U.S.-China Feud Gets Nasty With Red Tape as Stealth Weapon

    (Bloomberg) -- The U.S. and China are moving beyond bellicose trade threats to exchanging regulatory punches that threaten a wide range of industries including technology, energy and air travel.The two countries have blacklisted each other’s companies, barred flights and expelled journalists. The unfolding skirmish is starting to make companies nervous the trading landscape could shift out from under them.“There are many industries where U.S. companies have made long-term bets on China’s future because the market is so promising and so big,” said Myron Brilliant, the U.S. Chamber of Commerce’s head of international affairs. Now, they’re “recognizing the risk.”China will look to avoid measures that could backfire, said Shi Yinhong, an adviser to the nation’s cabinet and a professor of international relations at Renmin University in Beijing. Any sanctions on U.S. companies would be a “last resort” because China “is in desperate need of foreign investment from rich countries for both economic and political reasons.”Nevertheless, pressure is only expected to intensify ahead of the U.S. elections in November, as President Donald Trump and presumptive Democratic nominee Joe Biden joust over who will take a tougher line on China.Trump has blamed China for covering up the coronavirus pandemic he has mocked as “Kung Flu,” accused Beijing of “illicit espionage to steal our industrial secrets” and threatened the U.S. could pursue a “complete decoupling” from the country. Biden, likewise, has described President Xi Jinping as a thug, labeled mass detention of Uighur Muslims as unconscionable and accused China of predatory trade practices.And on Capitol Hill, Republicans and Democrats have found rare unity in their opposition to China, with lawmakers eager to take action against Beijing for its handling of Covid-19, forced technology transfers, human rights abuses and its tightening grip on Hong Kong.“China is going to be a punching bag in the campaign,” said Capital Alpha Partners’ Byron Callan. “But China is a punching bag that can punch back.”China has repeatedly rejected U.S. accusations over its handling of the pandemic, Uighurs, Hong Kong and trade, and it has fired back at the Trump administration for undermining global cooperation and seeking to start a “new cold war.” Foreign Minister Wang Yi last month said China had no interest in replacing the U.S. as a hegemonic power, while adding that the U.S. should give up its “wishful thinking” of changing the country.Both sides have already taken a series of regulatory moves aimed at protecting market share.The U.S. is citing security concerns in blocking China Mobile Ltd., the world’s largest mobile operator, from entering the U.S. market. It’s culling Chinese-made drones from government fleets and discouraging the deployment of Chinese transformers on the power grid. The Trump administration has also tried to constrain the global reach of China’s Huawei Technologies Co., the world’s largest telecommunications equipment manufacturer.Meanwhile, China prevented U.S. airline flights into the country for more than two months and, after the U.S. imposed visa restrictions on Chinese journalists, it expelled American journalists. It has stepped up its scrutiny of U.S. companies, with China’s state news agency casting one probe as a warning to the White House. China also has long made it difficult for U.S. telecommunications companies to enter its market, requiring overseas operators to co-invest with local firms and requiring authorization by the central government.One of the most combustible flash points has been the Trump administration’s campaign to contain Huawei by seeking to limit the company’s business in the U.S. and push allies to shun its gear in their networks.The U.S. Federal Communications Commission moved to block devices made by Huawei and ZTE Corp. from being used in U.S. networks. And the Commerce Department has placed Huawei on blacklists aimed at preventing the Chinese company from using U.S. technology for the chips that power its network gear, including tech from suppliers Qualcomm Inc. and Broadcom Inc.After suppliers found work-arounds, Commerce in May tightened rules to bar any chipmaker using American equipment from selling to Huawei without U.S. approval. The step could constrain virtually the entire contract chipmaking industry, which uses equipment from U.S. vendors such as Applied Materials Inc., Lam Research Corp. and KLA Corp. in wafer fabrication plants.The curbs also threaten to cripple Huawei. Although the company can buy off-the-shelf or commodity mobile chips from a third party such as Samsung Electronics Co. or MediaTek Inc., going that route would force it to make costly compromises on performance in basic products.Huawei was on a list the Pentagon unveiled last week of companies it says are owned or controlled by China’s military, opening them to increased scrutiny. The Ministry of Foreign Affairs in Beijing accused the Trump administration of “violating the very market economy principle the U.S. champions.”“We are strongly opposed to this,” the foreign ministry said Sunday of the Pentagon’s designation. “China urges the U.S. to stop suppressing Chinese companies without reason and provide a fair, just and non-discriminatory environment for Chinese companies to operate normally in the U.S.”After the new restrictions, the editor of the Communist Party’s Global Times newspaper tweeted that China would retaliate using an “unreliable entities list” that it first threatened at the height of the trade war last year. Although China didn’t identify companies on the list, the Global Times has cited a source close to the Chinese government as saying U.S. bellwethers such as Apple Inc. and Qualcomm could be targeted.The fallout could extend to companies heavily reliant on Chinese supply chains, as well consumer-facing brands eager to expand sales in Asia. Boeing Co., which recorded $5.7 billion of revenue from China in 2019, and Tesla Inc., the biggest U.S. carmaker operating independently in China, are among companies most exposed if relations sour further.“We’re playing in a much wider field now,” said Jim Lucier, managing director of research firm Capital Alpha Partners. “We’re not simply talking about ‘you tariff me’ and ‘I tariff you.’ The playing field is virtually unlimited.”Planes and AutomobilesU.S. automakers have also been singed. In June, China fined Ford Motor Co.’s main joint venture in the country for antitrust violations, saying Changan Ford Automobile Co. had restricted retailers’ sale prices since 2013.Aviation has been another source of tension, as both countries squabble over access to their skies. China’s decision to limit U.S. airlines operations to those services scheduled as of March 12 hurt carriers such as United Airlines Holdings Inc., Delta Air Lines Inc, and American Airlines Group Inc. that had suspended passenger flights to and from China because of the coronavirus pandemic.The U.S. responded earlier this month by initially threatening to ban all flights from China, then relenting to allow two flights weekly once Chinese officials eased their restrictions. Now, in what appears to be a staged de-escalation, China gave U.S. passenger carriers permission to operate four weekly flights to the country and earlier this month, the Trump administration matched the move by also authorizing four flights from Chinese airlines.It’s happening outside of aviation too. Consider the U.S. government’s decision to seize a half-ton, Chinese-made electrical transformer when it arrived at an American port last year and divert the gear to a national lab instead of the Colorado substation where it was supposed to be deployed. That move -- and a May executive order from Trump authorizing the blockade of electric grid gear supplied by “foreign adversaries” of the U.S. in the name of national security -- have already sent shock waves through the power sector.The effect has been to dissuade American utilities from buying Chinese equipment to replace aging components in the nation’s electrical grid, said Jim Cai, the U.S. representative for Jiangsu Huapeng Transformer Co., the company whose delivery was seized. Although Cai said the firm has supplied parts to private utilities and government-run grid operators in the U.S. for nearly 15 years without security complaints, at least one American utility has since canceled a transformer award to the company, Cai said.Trump’s directive is tied to a broader effort to bring more manufacturing to the U.S. from China. “This is a part of the administration’s efforts to impair China’s supply chains into the United States,” said former White House adviser Mike McKenna.Escalating tensions could jeopardize the U.S. economic recovery as well as China’s trade commitment to buy $200 billion in American goods and services over the next two years. The country’s purchase of U.S. goods increased last month as the economy continued its recovery from the coronavirus shutdowns, but imports are still far behind the pace needed to meet the terms of the phase one trade deal, according to Bloomberg calculations based on data from China’s Customs Administration.U.S.-China struggles also may factor into the November presidential election. Former U.S. national security adviser John Bolton alleges in a new book that Trump asked Xi to help him win re-election by buying more farm products -- a claim the White House has dismissed as untrue.“I don’t expect one single blow to send this relationship in a tailspin,” the chamber’s Brilliant said. “Each side will calibrate their reactions in a way that will not tip the scales too far.”Take the recent spat over media access. After the U.S. designated five Chinese media companies as “foreign missions,” China revoked press credentials for three Wall Street Journal staff members over an article with a headline describing China as the “real sick man of Asia.”Then the Trump administration ordered Chinese state-owned news outlets to slash staff working in the U.S. Beijing responded in March by effectively expelling more than a dozen U.S. journalists working in China.Both the U.S. and China have ample opportunities to ratchet up regulatory pressure. A bill passed by the Senate last month could prompt the delisting of Chinese companies from U.S. stock exchanges if American officials aren’t allowed to review their financial audits.And last week, as the U.S. State Department imposed visa bans on Chinese Communist Party officials accused of infringing the freedom of Hong Kong citizens, a senior official made clear the move was just an opening salvo in a campaign to force Beijing to back off new restrictions on the city.China, similarly, can slow licensing decisions and regulatory approvals, launch investigations under its anti-monopoly law and squeeze financial firms that want to do business in the country. For instance, the country could rescind pledges to let U.S. financial firms take controlling stakes in Chinese investment banking joint ventures, according to a Cowen analyst.“China will not make any significant compromise and will retaliate whenever and wherever possible,” said Shi, the Renmin University professor.Companies are still lured to China and its massive local market -- and tensions with the U.S. don’t overcome the Asian superpower’s appeal. Just one-fifth of companies surveyed by the American Chamber of Commerce in China late last year said they had moved or were considering moving some operations outside of the country, part of a three-year downward trend.But the coronavirus pandemic has subsequently pushed more companies to reckon with the risks of relying too heavily on any single country for their supply chains, amid existing concerns about forced technology transfers, cost and rising tensions that could damp investment in China.China is no longer the lowest-cost manufacturer, and companies are more reluctant to invest there, said James Lewis, director of the Technology Policy Program at the Center for Strategic and International Studies in Washington.“Everyone would like to be in the China market -- everyone wants it to be like 2010 -- but things are changing.”(Updates with trade data in 28th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • 3 Dividend Tech Stocks to Buy Now as Nasdaq Hits New All-Time Highs

    3 Dividend Tech Stocks to Buy Now as Nasdaq Hits New All-Time Highs

    The Nasdaq Composite touched a new all-time intraday high Tuesday. So let's look at three tech stocks that provide exposure to growth and pay a dividend amid these still uncertain times...

  • Top Tech Stocks for July 2020

    Top Tech Stocks for July 2020

    The technology sector is comprised of businesses that sell goods and services in electronics, software, computers, artificial intelligence, and other industries related to information technology (IT).

  • MarketWatch

    KLA, Lam Research stocks drop after Stifel downgrades

    Shares of KLA Corp. are off 1.5% in premarket trading Monday while shares of Lam Research Corp. are down 0.6% after Stifel analyst Patrick Ho downgraded the stocks to neutral from buy. "We believe the recent rally in the markets and the group has led to a less attractive valuation that has risen 'too high' and 'too fast'" Ho wrote. "We believe there is the potential for memory fundamentals to begin weakening in CY-2H20 and this could lead to push outs of certain memory projects out of 2020." He kept a buy rating on shares of Applied Materials Inc. , arguing that the stock still had room for upside and that Applied Materials was among a handful of names that could outperform in the semiconductor-equipment space in part due to more balanced business models. Applied shares have gained 60% over the past three months, while KLA shares have added 69% and Lam shares have rallied 68%. The S&P 500 has increased 34% in that span.

  • Lam Research (LRCX) Stock Moves -0.03%: What You Should Know

    Lam Research (LRCX) Stock Moves -0.03%: What You Should Know

    In the latest trading session, Lam Research (LRCX) closed at $314.70, marking a -0.03% move from the previous day.

  • Dow Jones Cuts 371 Point Gain On China News; Apple Hits All-Time High On Price-Target Hike
    Investor's Business Daily

    Dow Jones Cuts 371 Point Gain On China News; Apple Hits All-Time High On Price-Target Hike

    The major stock indexes were sharply higher early Friday on China trade news with three breakout stocks to watch, like Alibaba and Paylocity.

  • Dow Jones Erases 270 Point Loss Despite Weak Jobless Claims; Alteryx Surges 7% To Break Out Above New Buy Point
    Investor's Business Daily

    Dow Jones Erases 270 Point Loss Despite Weak Jobless Claims; Alteryx Surges 7% To Break Out Above New Buy Point

    The stock market was lower early Thursday on weak jobless data. Breakout stocks to watch include Alteryx, Lam Research and Teradyne.

  • What Can We Make Of Lam Research Corporation’s (NASDAQ:LRCX) High Return On Capital?
    Simply Wall St.

    What Can We Make Of Lam Research Corporation’s (NASDAQ:LRCX) High Return On Capital?

    Today we are going to look at Lam Research Corporation (NASDAQ:LRCX) to see whether it might be an attractive...

  • Dow Jones Futures Swing Lower As Stock Market Rally Hits Resistance On Coronavirus News; Netflix, Tesla In Focus
    Investor's Business Daily

    Dow Jones Futures Swing Lower As Stock Market Rally Hits Resistance On Coronavirus News; Netflix, Tesla In Focus

    Dow Jones futures fell even as China said Beijing's Covid-19 outbreak is under control. The market rally hit resistance Wednesday.

  • Nasdaq Near 10,000 Again; These Stocks Help IBD 50 Outperform
    Investor's Business Daily

    Nasdaq Near 10,000 Again; These Stocks Help IBD 50 Outperform

    The stock market improved in afternoon trading as the Nasdaq and S&P; 500 looked for a fourth consecutive gain.

  • Dow Jones Slides 100 Points Ahead Of Fed Chairman Powell Comments; 3 Breakout Stocks To Watch
    Investor's Business Daily

    Dow Jones Slides 100 Points Ahead Of Fed Chairman Powell Comments; 3 Breakout Stocks To Watch

    The stock market was mixed early Wednesday, as the Nasdaq composite led the day's action. Blue-chip leader Apple hit an all-time high.

  • Morgan Stanley Bets on These 3 Hot Tech Stocks

    Morgan Stanley Bets on These 3 Hot Tech Stocks

    Last week was grim for the stock market, including the worst single-day loss since March, but the trend lines are turning upwards again this week. Treasury Secretary Mnuchin’s statement that the US cannot shut down its economy again gave investors a boost of confidence – and this week’s May retail sales report gave an even bigger one.This is the good news background lending credence a recent report from Morgan Stanley, on finding the advantageous tech position for a V-shaped recovery. The report, lead-authored by 5-star analyst Joseph Moore, details the strengths and weaknesses of the tech sector as companies respond to the economic recovery and the resumption of a more normal consumer activity. Moore pinpoints three tech stocks that are likely to gain – and upgrades their ratings in consequence.We’ve used the TipRanks database to pull the details on these three tech stocks, to find out what makes them such compelling opportunities. Qualcomm, Inc. (QCOM)Qualcomm has a clear path forward as retail markets reopen. The semiconductor chip maker is heavily invested in both the smartphone market and the burgeoning 5G rollout, and both sectors are expected to expand dramatically with the resumption of consumer demand. The May retail numbers are relevant on this point, indicating that consumers are willing to spend and have the resources to do so.The company’s forward prospects were blurred slightly by underperformance in 1H20 – but that underperformance should be taken with some careful skepticism. QCOM’s calendar fourth quarter is historically the company’s strongest, so declines in Q1 and Q2 were to be expected even without the coronavirus turndown. In the event, however, QCOM overperformed in both quarters, beating EPS and revenue expectations. Q1 saw $5.08 billion at the top line; Q2 saw an improvement to $5.22 billion.Reviewing QCOM shares for Morgan Stanley, analyst James Faucette upgrades the stock to Buy from Neutral, and supports his rating with a $102 price target. Faucette’s target implies a healthy upside of 13% for the stock. (To watch Faucette’s track record, click here)In his comments on QCOM, Faucette writes, “We see smartphone demand improving through the year, with a rising average selling price as we transition to 5G; volumes down 30% y/y in 2q should be a good entry point as we see consumption rebounding quickly.” Overall, the Moderate Buy analyst consensus rating on QCOM still reflects Wall Street’s recent caution in the markets. The 19 reviews on the stock break down as 11 Buys, 5 Holds, and 3 Sells. Shares are selling for $89.52, and the $91 average price target suggests a minimal upside of nearly 2%. (See Qualcomm stock analysis on TipRanks)Qorvo, Inc. (QRVO)Next on our list, Qorvo, is another chip maker. This company has a strong reputation and niche in the wifi segment, where it provides integrated circuits for networking communications hardware. Countless PCs, laptops, tablets, and smartphones use Qorvo chips, and the company’s products are important in older applications such as cordless phones and industrial radio.Qorvo’s solid niche position in the essential wireless tech industry helped insulate the stock from the economic turmoil of Q1 and Q2. Yes, the company saw revenues and earnings slip in both quarters, but in both cases the results were within the expectations of historical performance patterns. Calendar Q4 is QRVO’s strongest, and the company beat the forecasts in both calendar Q1 and Q2.The most recent report, for the company’s fiscal fourth quarter, shows the picture. QRVO saw revenue of $787.8 million, up 15% year-over-year, while the EPS of $1.57 beat the $1.32 forecast by a wide margin. QRVO’s share price reflects the earnings and market position. The stock has recovered from the February-March dip, and is trading up 8% from pre-bear levels.Morgan Stanley’s Craig Hettenbach, rated 5-stars in the TipRanks database, writes of QRVO: “We upgrade QRVO to Overweight on a recovery in mobile in 2H and expectation of further acceleration in 2021… We expect a cyclical rebound in smartphones, with 5G adoption adding another kicker as RF $ content should increase more than $5 per phone or over 30%...”Hettenbach supports his new Buy rating with a $130 that implies a one-year upside of 15% for the stock. (To watch Hettenback’s track record, click here)QRVO shares have a Strong Buy rating from the analyst consensus. Wall Street’s reviewers have posted 16 analyses of the stock, breaking down to 12 Buys and 4 Holds. Shares are trading now at $113.26, and the $119.85 average price target suggests the stock has room for a modest 6% growth. (See Qorvo stock analysis on TipRanks)Lam Research (LRCX)Last on our list of Morgan Stanley recommendations is Lam Research, a company with an interesting niche in the semiconductor industry. They don’t make chips; rather, they specialize in wafer fabrication, the preparation of the silicon wafer from which chips are produced. Lam primary operations are the design, manufacture, and marketing of processing equipment used in front-end wafer processing. The company saw $9.7 billion in revenue last year, and netted $2.2 billion in income.For the most recent quarter, the company’s fiscal third, LRCX reported strong results. $2.5 billion in revenue, 46% gross margins, and $3.88 EPS left management feeling confident.Joseph Moore wrote the Morgan Stanley review on LRCX, saying, “…buying these stocks near the bottom of the macroeconomic cycle requires looking through some uncertainty, and favor Lam over peers given the higher exposure to memory – particularly NAND – where we see trailing spending as well below normal, improving from here…”Moore upgrades LRCX from Neutral to Buy, and raises his price target from $253 to $334. His new target implies an upside of 9.3% for the coming year. (To watch Moore’s track record, click here)LRCX has 21 recent analyst reviews, including 17 Buys and only 4 Holds. It’s the most expensive stock on this list, currently selling for $312.65. The average price target, at $309.86, indicates that Wall Street generally is more cautious than the Morgan Stanley analyst team. (See Lam Research’s stock stock-price forecast on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

  • Nasdaq Powers Higher as Baidu Gains, Lam Gets a Lift
    Motley Fool

    Nasdaq Powers Higher as Baidu Gains, Lam Gets a Lift

    Tuesday was a good day for Wall Street, especially for the stocks within the Nasdaq Composite (NASDAQINDEX: ^IXIC). One company investors haven't heard much about lately is Baidu (NASDAQ: BIDU), but the Chinese internet search company got a push higher from interest in one of its major investment holdings. Meanwhile, in the semiconductor equipment sector, Lam Research (NASDAQ: LRCX) continued to gain ground as demand for chips remains robust.

  • Morgan Stanley's Semiconductor Picks: Qualcomm, Qorvo, Lam Research Over Intel, Nvidia

    Morgan Stanley's Semiconductor Picks: Qualcomm, Qorvo, Lam Research Over Intel, Nvidia

    With computing and cloud stocks that are capitalizing on the work-from-home economy rallying, an analyst at Morgan Stanley is of the view that it's time to rotate out of them -- and into semionductor stocks that are levered to a rebound in consumer spending.The Semiconductor Analyst Analyst Joseph Moore made the following changes to the ratings of the stocks in his coverage universe:Intel Corporation (NASDAQ: INTC) shares were downgraded from Overweight to Equal-weight with a price target upped from $61 to $65.NVIDIA Corporation (NASDAQ: NVDA) was downgraded from Overweight to Equal-weight, with a price target raised from $363 to $380.Qorvo Inc (NASDAQ: QRVO) was upgraded from Equal-weight to Overweight with a price target hiked from $91 to $130.Lam Research Corporation (NASDAQ: LRCX) was upgraded from Equal-weight to Overweight with a price target increased from $253 to $334.QUALCOMM, Inc. (NASDAQ: QCOM) was upgraded from Equal-weight to Overweight and the price target was moved up from $83 to $102.The Semiconductor Thesis The recession is bottoming out and is likely to be followed by a V-shaped recovery, Moore said in a Tuesday note. (See his track record here.)Against this backdrop, the analyst said it's worthwhile to shift his preference away from cloud and other compute stocks that he said have "idiosyncratic" momentum carrying them through the weakness.Instead, Moore said he prefers names that are likely to see one or two quarters of fundamental weakness but are more directly levered to an economic recovery, such as smartphones, memory and equipment and eventually auto and industrial."It's a shift from growth to cyclical, but also a shift from idiosyncratic growth drivers (which suddenly comes at a high price) to stocks that are more of a direct play on a robust rebound in consumer spending," the analyst said. Among its investment goals for the semiconductor sector, Morgan Stanley is maintaining at least market weightings on the sector and is taking profits in overvalued cloud names, he said. The analyst said he recommends increasing exposure to more cyclical elements by buying smartphone chipmakers; pure cyclical exposure in semicap, with a focus on memory over foundry; and cyclical analog stocks that still have a tailwind of multiple expansion.Chipmakers with exposure to autos should see a bottom, as that sector is experiencing significant weakness, Moore said.The analyst also sees the new stimulus in Europe as being encouraging for semi companies with electric vehicle exposure.Morgan Stanley remains Underweight on stocks such as Texas Instruments Incorporated (NASDAQ: TXN), which has already seen significant multiple expansion, and ON Semiconductor Corp (NASDAQ: ON), where Moore said margin performance is weak and competitive risks are rising.Semiconductor Price Action At the market close Tuesday: * Intel shares were up 0.5% at $60.40. * Nvidia was down 1.15% at $362.74. * Qorvo gained 2.61% to $112.58. * Lam Research shares rallied 5.34% to $305.48. * Qualcomm was up 3.62% at $89.52. Related Links:Why KeyBanc Is Betting On Intel's Comeback KeyBanc Upgrades Qualcomm On Potential Benefit From HiSilicon Ban Photo courtesy of Nvidia. Latest Ratings for QCOM DateFirmActionFromTo Jun 2020Morgan StanleyUpgradesEqual-WeightOverweight Jun 2020RosenblattInitiates Coverage OnBuy May 2020KeyBancUpgradesSector WeightOverweight View More Analyst Ratings for QCOM View the Latest Analyst RatingsSee more from Benzinga * Why KeyBanc Is Betting On Intel's Comeback * Why Key Intel Chip Design Exec's Departure Is Positive For AMD, Nvidia * Apple Could Announce In-House Chips For Macs At WWDC: Report(C) 2020 Benzinga does not provide investment advice. All rights reserved.


    It’s Time To Rotate Into These 3 Less Expensive Chip Stocks, Analyst Says

    Morgan Stanley upgraded shares of Qualcomm, Lam Research, and Qorvo on Tuesday, while downgrading Intel and Nvidia.


    Qualcomm and Lam Research Stock Upgraded on 5G, Outlook

    Morgan Stanley upgraded Qualcomm, on expected smartphone demand, and Lam Research, on a bright long-term outlook.

  • Chips Mixed But Lam Research Shines
    Investor's Business Daily Video

    Chips Mixed But Lam Research Shines

    Morgan Stanley shifted their Chip focus from leaders like NVDA to rebounds like Lam Research.

  • MarketWatch

    Nvidia, Intel stocks get downgraded at Morgan Stanley

    Morgan Stanley analyst Joseph Moore downgraded shares of Nvidia Corp. and Intel Corp. to equal weight from overweight Tuesday, writing that he's shifting his chip-sector preferences toward names that stand to benefit from a broader economic recovery. He previously showed a preference for stocks that could benefit from remote-working trends. Nvidia shares are off 0.6% in Tuesday morning trading while Intel shares are up 1.7%. Moore wrote that in a recent Nvidia note, he drew comparisons between Nvidia and high-growth software names to justify his price target. "As much as we like the longer-term growth story, that's simply not a comparison that we're totally comfortable with," he said. On Intel, Moore wrote that consensus estimates seem low for the second-half of this year but "the growth deceleration implied by consensus numbers does imply significant risk to CY21." He upgraded shares of Lam Research Corp. , Qualcomm Inc. , and Qorvo Inc. [s QRVO] to overweight from equal weight. Nvidia shares have added 84% over the past three months as Intel's stock has rallied 38%. The S&P 500 is up 32% in that time as the Dow Jones Industrial Average , of which Intel is a component, is up 31%.

  • Lam Research (LRCX) Gains But Lags Market: What You Should Know

    Lam Research (LRCX) Gains But Lags Market: What You Should Know

    Lam Research (LRCX) closed at $284.52 in the latest trading session, marking a +0.74% move from the prior day.

  • Bloomberg

    TSMC Scores Subsidies and Picks Site for $12 Billion U.S. Plant

    (Bloomberg) -- Taiwan Semiconductor Manufacturing Co. has secured government subsidies for its envisioned $12 billion chip plant in Arizona, moving closer toward finalizing a facility designed to allay national security concerns and shift high-tech manufacturing to America.TSMC, the main chipmaker to Apple Inc. and Huawei Technologies Co., has picked a site for the future plant and both federal and state governments have agreed to help make up for the higher cost of fabricating semiconductors in the U.S., Chairman Mark Liu told reporters Tuesday. Negotiations continue over the specifics of those incentives, he said without elaborating or identifying the site’s location.The decision to situate a plant in Arizona came after White House officials warned about the threat inherent in having much of the world’s electronics made outside of the U.S. TSMC had negotiated a deal with the administration to create American jobs and produce sensitive components domestically for national security reasons. It announced the project just before Washington leveled new restrictions on the sale of chips to Huawei, seeking to contain one of TSMC’s largest customers.TSMC has set aside land adjacent to its selected plot and hopes to convince its own suppliers to set up operations in the vicinity over time, Liu added. They would join the likes of Intel Corp. and Micron Technologies Inc., which already operate facilities in the western state and have helped build a vibrant local semiconductor industry over the years. The scope of any eventual subsidies would require blessing from Congress, Liu added.“Subsidies will be a key factor in TSMC’s decision to set up a fab in the U.S.,” he said. “We are still talking to the U.S. government. Our request is that the state and federal governments together make up for the cost gap between the U.S. and Taiwan.”Read more: TSMC Plans $12 Billion U.S. Chip Plant in Victory for TrumpTSMC is embarking on its U.S. endeavor during one of the most turbulent years in memory, with the coronavirus pandemic depressing the global economy and smartphone demand that top clients Apple and Huawei depend on for growth. The company, which in April trimmed its 2020 sales outlook, also finds itself in the crossfire as the Trump administration ratchets up a campaign to contain China. Washington last month barred any chipmaker using American equipment from supplying the networking giant without U.S. approval, effectively blocking Huawei’s access to semiconductor manufacturing and dealing a blow to TSMC’s business.The Taiwanese chipmaker hopes to keep supplying Huawei but is confident other customers can replace any business lost because of tightening U.S. curbs on China’s largest tech company. TSMC is studying the latest restrictions and is hopeful the issue will get resolved over time, Liu told shareholders Tuesday. Liu declined to comment when asked whether TSMC had already ceased taking orders from the Chinese company.But Liu reaffirmed TSMC’s projections for 2020, saying it still planned to spend as much as $16 billion this year on capacity upgrades and technology, and foresees a mid- to high-teens percentage rise in 2020 revenue.Shareholders “can rest assured that we will resolve these new restrictions one by one. We will find a solution to continue to grow and secure more profits for our shareholders,” Liu said at Tuesday’s annual general meeting. “If there are no more HiSilicon orders, our other customers will want to fill the gap in our capacity, market share, or smartphone market share left by Huawei. How fast they can fill that gap depends.”Read more: Huawei Sees Dire Threat to Future From Latest Trump SalvoWashington’s curbs -- a more precise strike against Huawei because it targets its secretive and cutting-edge HiSilicon semiconductor division -- threaten to wreak havoc throughout the complex chip ecosystem that produces technology for consumers and companies globally.As the world’s largest and most advanced maker of chips for other companies, TSMC plays a crucial role in the production of devices from smartphones and laptops to servers running the internet. Huawei is TSMC’s largest customer after Apple and accounts for about 14% of the Taiwanese chipmaker’s sales, according to data compiled by Bloomberg. The Taiwanese firm may now have to cut off Huawei unless it gets waivers from the Commerce Department. But additional business from existing clients like Apple, Qualcomm Inc., MediaTek Inc. or Advanced Micro Devices Inc. could help offset a decline in orders.For TSMC, it’s growing ever more difficult to remain neutral amid the growing tensions between the U.S. and China. The company brands itself “everybody’s foundry,” effectively the Switzerland of the tech industry -- something executives reiterated on Tuesday. It supplies not just Chinese customers like Huawei but also the American military, while relying on U.S. producers of semiconductor-making equipment like Applied Materials Inc. and Lam Research Corp.“New restrictions can lead to a rebalancing among market players,” Liu told reporters. Huawei “will not be able to make smartphones in the future without semiconductors, and other smartphone brands will eat into its market share.”“We will still have a high market share after the rebalancing,” he added.Read more: U.S.-China Fight Over Chip Kingpin Rattles Tech IndustryFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.