Key insights
- Lam Research (LRCX), a key manufacturer of semiconductor tools, is highlighted as an under-the-radar AI stock. Despite significant recent gains and positive sentiment in semiconductor communities regarding its profitability and employee satisfaction, the company is not widely discussed. This suggests potential for continued upside as a critical enabler of the AI hardware supply chain, making it an attractive, less-obvious investment in the AI sector.
If AMD and Nvidia are the "picks and shovels" of the AI gold rush then LAM is essentially who manufactures the tools you use to make the picks and shovels. I've seen crazy profits the past year from them yet there's barely a peep about them in the investor space. So for anyone who wants to buy a crucial, but "under the radar" AI stock I'd say they're definitely a good buy. If you have a peek into the semiconductor subreddit you'll see a lot of positive affirmation of them being a good business both in regards to profitability and employee satisfaction.