Lam Research (LRCX) is being hurt by a downturn in industry demand, and the trade war is a major risk factor weighing on the semiconductors sector. On the other hand, the company is delivering better-than-expected earnings and solid profitability levels during challenging times for the industry.
More importantly, Lam Research's stock is attractively valued at current prices, and it could deliver big gains when - not if - market conditions improve. For investors who can handle the risk, LRCX has a lot to offer in terms of upside potential over the long term.