LRCX - 1 Chip Stock That's Beginning to Look Really Cheap
2023-08-02 10:15:00 ET
Select semiconductor design stocks and big tech are feeling optimistic about generative artificial intelligence (AI) services like ChatGPT, but the financial hype hasn't trickled down to the rest of the economy just yet -- or has it?
Chip manufacturing equipment companies critical to the making of AI systems are in a slump this year as their customers try to conserve cash, but it looks like AI is waking them up from their bear market slumber a bit earlier than expected.
At least, that's the vibe top equipment maker Lam Research (NASDAQ: LRCX) was giving off during its last earnings report. Lam is anticipating a sequential rise in revenue after another nasty year-over-year tumble. Powerful chips and new chip system packaging techniques could provide a significant lift in the coming years. Even after a rally off of multiyear lows so far in 2023, this stock could be cheap.
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1 Chip Stock That's Beginning to Look Really Cheap