Lam Research Poised for Rebound as AI Memory Demand Drives Semiconductor Resurgence
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Lam Research's revenue and earnings declined sharply in 2023 due to weak semiconductor equipment spending, especially in the memory market.
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Spending on semiconductor equipment is expected to rebound 15% in 2024, driven by AI adoption. The memory equipment market should see even faster 65% growth.
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Lam is well-positioned to capitalize on growing demand for high-bandwidth memory used in advanced AI servers.
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Major AI chipmakers like Nvidia are packing more high-bandwidth memory into their chips, fueling further demand.
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With memory market conditions set to improve significantly, Lam's revenue and earnings have room for strong growth over the next couple of years, which could send the stock 50% higher.