Does Lam Research Corporation (LRCX) Have an Attractive Valuation?

2 hours ago 1

Soumya Eswaran

Mon, December 29, 2025 astatine 9:10 AM CST 3 min read

Artisan Partners, an concern absorption company, released its “Artisan Value Fund” third-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The equity marketplace rally persisted successful the 3rd 4th arsenic investors ignored tariffs, buoyed by beardown firm earnings, rising AI investment, and prospects of economical enactment from US fiscal argumentation and little involvement rates. Against this backdrop, the fund’s Investor Class ARTLX, Advisor Class APDLX, and Institutional Class APHLX returned 0.83%, 0.91%, and 0.90%, respectively, successful the 3rd 4th compared to a 5.33% instrumentality for the Russell 1000 Value Index. In addition, you tin cheque the apical 5 holdings of the money to cognize its champion picks successful 2025.

In its third-quarter 2025 capitalist letter, Artisan Value Fund highlighted stocks specified arsenic Lam Research Corporation (NASDAQ:LRCX). Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, and services semiconductor processing equipment. The one-month instrumentality of Lam Research Corporation (NASDAQ:LRCX) was 15.04%, and its shares gained 146.81% of their worth implicit the past 52 weeks. On December 26, 2025, Lam Research Corporation (NASDAQ:LRCX) banal closed astatine $178.07 per share, with a marketplace capitalization of $224.552 billion.

Artisan Value Fund stated the pursuing regarding Lam Research Corporation (NASDAQ:LRCX) successful its 3rd 4th 2025 capitalist letter:

"On the affirmative side, the 3 caller purchases we made successful Q2 during the post-Liberation Day marketplace meltdown—Lam Research Corporation (NASDAQ:LRCX), ASML and ThermoFisher Scientific—were each among our apical contributors to returns successful Q3. Lam and ASML are semiconductor instrumentality companies, and Thermo Fisher is simply a beingness subject tools and objective probe company. As worth investors, conditions of fearfulness and uncertainty are fertile crushed for creating charismatic semipermanent buying opportunities. Few areas of the marketplace were nether greater unit to commencement the twelvemonth than semiconductors & semiconductor instrumentality stocks. We had been researching Lam since 2023, truthful we knew the institution good and were capable to enactment rapidly erstwhile the banal plunged. At our archetypal purchase, Lam was selling for ~$60, astir 50% beneath its July 2024 highs. Lam is 1 of the cardinal planetary suppliers of spot instrumentality serving the representation (NAND and DRAM) and foundry/logic markets. The fiscal information is stone coagulated arsenic it has a nett currency equilibrium sheet, and the institution returns 100% of net to shareholders via stock repurchases and dividends. Shares were selling for a 17X P/E connected cyclically depressed net astatine the clip of archetypal purchase, which we believed was an charismatic valuation fixed the compounding quality of the business."