LAM RESEARCH CORP

Wafer-fab-equipment leader with top-decile margins, returns, and cash generation, growing strongly on AI/HBM-driven capex.

Strengths

• Elite margins and returns — operating margin 32.0% (100th), net margin 29.1% (100th), ROE 54.3% (100th), ROA 25.1% (100th)
• Strong growth — MD&A: revenue $18.4B, +23.7%; gross margin expanded to 48.7%
• Strong cash generation — OCF margin 33.5% (100th)

Risks

• WFE cyclicality — revenue swings with capex cycles (it fell 14.5% the prior year)
• China export-control exposure — risk factors stress trade/export-license impact on China sales
• Customer concentration among leading-edge memory/logic fabs — qualitative (per 10-K)

Notable findings

• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC
• Exec changeRecent 8-K item 5.02 8-K ↗
• Chronic dilutionShare count +71%/yr over 4y (dilution, book value/share -81%)
• Strong balance sheetStrong balance sheet — $6.4B cash & investments
• AccumulatingInstitutional holders rose 29→30 QoQ (2025-12-31→2026-03-31)
• Notable holderHeld by 8 notable fund(s): STATE STREET CORP, FMR LLC, GOLDMAN SACHS GROUP INC +5 more (as of 2026-03-31)
• China exposureRegulations that impact trade, including tariffs, export controls, taxes, trade barriers, sanctions, the termination or modification of trade agreements, trade zones, and other duty mitigation initiat
• Insider sellingInsider selling — 52 open-market sale(s) by 4 insider(s) (cluster of 4 insiders, ~$77M, last 6mo) Form 4 ↗