ASYS vs. LRCX: Which Semiconductor Equipment Stock is the Better Buy?

Amtech Systems (ASYS) and Lam Research Corporation (LRCX) operate at the core of the semiconductor ecosystem. While Lam Research supplies the advanced machines used to build chips, especially for newer technologies that power artificial intelligence (AI), Amtech Systems focuses on a smaller niche with its thermal processing and silicon wafer equipment.

Both ASYS and LRCX are heavily invested in the new generation of semiconductor chips that are used to power AI. However, from an investment point of view, one stock offers a more favorable outlook than the other right now. Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which stock offers a more compelling investment case.

The Case for Amtech Systems Stock

Amtech Systems has identified advanced packaging as a significant growth opportunity, particularly within AI infrastructure. In the third quarter of fiscal 2025, the company observed a strengthening demand for its equipment used in advanced packaging applications, which is essential for AI infrastructure.

During the third quarter, sales of equipment used in AI infrastructure were five times higher than a year ago and made up about 25% of Thermal Processing Solutions’ revenues. This shows how quickly AI demand is becoming an important part of Amtech Systems’ business. Moreover, management stated that bookings during the third quarter suggest that AI-related demand should remain strong going forward. This uptick in demand is expected to serve as a growth catalyst.

However, Amtech Systems continues to face weak demand in its mature node semiconductor business, which remains a major headwind. In the third quarter of fiscal 2025, weakness in the mature node semiconductor market resulted in lower sales of wafer cleaning equipment, diffusion systems and high-temperature furnaces. Notably, all of these tools are used in chip production, mainly in industrial and automotive applications.

Continued weakness in the mature node semiconductor market is hurting the company's overall growth. While strong AI demand is helping Amtech Systems offset weakness in mature node markets, full recovery depends on a pickup in mature node markets. The Zacks Consensus Estimate predicts a 24.4% decline in fiscal 2025 revenues.

The Case for Lam Research Stock

Lam Research is capitalizing on AI trends. The company builds tools that are required by chipmakers for manufacturing next-generation semiconductors, such as high-bandwidth memory (HBM) and chips used in advanced packaging.

In the first quarter of fiscal 2026, Lam Research saw continued demand for its innovative and critical products. During the first quarter, Lam Research’s Halo molybdenum ALD tool was chosen as the “tool of record” across three consecutive NAND nodes at a major customer, including devices with more than 500 layers.

Additionally, Lam Research’s Aether dry resist EUV patterning platform is already in high-volume production for HBM chips. The platform helps to reduce EUV exposure dose by over 10%, which improves performance and results in lower costs. These are essential capabilities as demand for advanced AI chips increases.

Advanced packaging is another bright spot. Its SABRE 3D and Syndion systems are widely used today, and the company is also developing tools required for panel-level packaging to support larger and more complex AI chips.

These trends are aiding Lam Research’s financial performance. In the first quarter of fiscal 2026, the company reported revenues of $5.32 billion, up 28% year over year, and non-GAAP EPS of $1.26, highlighting a 46.5% increase. The Zacks Consensus Estimate for Lam Research’s full fiscal 2026 revenues is pegged at $20.13 billion, suggesting a year-over-year increase of 9.2%.

Price Performance and Valuation of ASYS and LRCX

Year to date, Amtech Systems shares have appreciated 44.3%, while Lam Research shares have surged 104.3%.

YTD Price Return Performance

On the valuation front, Lam Research trades at 8.61 times forward sales multiple compared to 1.33 times for Amtech Systems. While Lam Research does seem pricey compared with Amtech Systems, it also reflects higher growth expectations for the company.

Forward 12-Month P/S Ratio

Conclusion: LRCX Looks Like the Better Bet

Lam Research’s solid fundamentals, expanding AI exposure, and consistent growth potential support its favorable investment outlook. In contrast, Amtech Systems faces ongoing challenges in mature node markets despite emerging AI-driven opportunities. Overall, Lam Research’s stronger market position and growth trajectory make it the better pick between the two semiconductor equipment stocks.

Currently, Lam Research has a Zacks Rank #2 (Buy), making the stock a must-pick compared to Amtech Systems, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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