- Most investors expect strong semiconductor sales in 2021 as new technologies like 5G are brought to market.
- With the economy as weak as it is, new technologies may not see as much consumer demand as investors currently expect.
- Lam Research has been a major benefactor of Asia's growing chip industry; a trend that is beginning to slow.
- Lam's dependence on Asia creates tremendous tariff and geopolitical risks that could cause significant declines to revenue.
- While Lam has a low valuation and clean balance sheet, there is a significant probability that its earnings decline over the coming years.
For further details see:
Lam Research: Solid Fundamentals, But Chip Industry's Strength Is Fading