DCF Conclusion Study on Lam Research (LRCX)

LRCX/AMAT Will Tell Me When Tech Is Ready to Bottom Out.

In yesterday’s members note, we talked about how Lam Research is more likely the real influence in tech in this week’s earnings calendar based on investor’s focus on AI. This is because this company serves as a bellwether to the Semicap equipment supply chain and I place high emphasis on LRCX and AMAT earnings outcomes.

This is the blurb from yesterday’s members note.

The good news is that fundamentals on longer-term horizons look great based on my read. The earnings story is surely intact.

The bad news is that as least for today, Investors are selling off Lam.

This is where our DCF Conclusion Study will come in - to cut through the noise and understand where Lam is likely to find support from a valuation standpoint.

Once Lam and Applied Materials find their footing, it’s only a matter of time until tech recovers.

The path until then may be bumpy.

What is Lam Research’s fair value and what is the upside target if the bullish case can be reinstated? What is the Bear Case if pessimism really takes hold?

This and more discussed below.

Side note: tonight is Amazon and Apple earnings. Any strong CapEx spending guide from them bodes well for Lam and Applied.