Lam Research Corporation LRCX has delivered an exceptional run over the past year, with its stock nearly tripling as strong AI-related semiconductor demand drives spending on chipmaking equipment.
LRCX has surged 192.8% over the past 12 months, easily outpacing the Zacks Electronics – Semiconductor industry’s 35.3% growth. The stock has also outperformed major industry peers, including Applied Materials, Inc. AMAT, Amkor Technology, Inc. AMKR and Broadcom Inc. AVGO, which have gained 180.6%, 92.4% and 3.6%, respectively, during the same period.
Lam Research One-Year Price Return performance
Image Source: Zacks Investment Research
Such a massive rally naturally raises an important question: Can Lam Research stock continue to move higher after such a strong run?
LRCX still has upside potential. The stock is more expensive than it was a year ago, but its earnings outlook, exposure to AI infrastructure and strong position in advanced semiconductor manufacturing provide enough support for further gains.
AI Chip Demand Keeps Lam Research on a Strong Growth Path
Lam Research is an important part of the semiconductor supply chain ecosystem. The company supplies advanced equipment used by leading chipmakers, including Taiwan Semiconductor Manufacturing and Samsung, to manufacture sophisticated semiconductors.
This puts LRCX in a favorable position as AI chip production expands. The development of increasingly powerful AI processors is driving demand for advanced packaging, high-bandwidth memory (HBM) and more complex chip designs. These technologies require advanced etch and deposition equipment, areas in which Lam Research has significant expertise.
The company is also investing in new technologies to strengthen its competitive position. Its ALTUS ALD system is designed to improve manufacturing efficiency through molybdenum-based deposition, while the Aether platform helps chipmakers produce smaller and denser chip structures.
Lam Research expects advanced packaging revenues to grow more than 70% in 2026 after strong growth in 2025. Emerging technologies such as backside power distribution and dry-resist processing could provide additional growth opportunities as chip designs become more complex.
The strength of customer demand is already visible in Lam Research’s results. The company has generated more than $5 billion in revenues for five consecutive quarters, including a record $6.72 billion in the latest reported financial results for the fourth quarter of fiscal 2026. The top-line performance consistency is important. It suggests that LRCX’s growth is being supported by actual semiconductor investment rather than simply by excitement around AI.
