Here's Why Lam Research (LRCX) Soared in Q3

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Growth & Income Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index continued its rally in the third quarter, ending the year-to-date returns at 13.7%. During this period, growth and momentum were key contributors to the market's performance. A significant portion of the market is currently tied to the single catalyst of AI deployment, which means that any weaknesses in this concept could significantly threaten the market's future strength. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Carillon Eagle Growth & Income Fund highlighted stocks such as Lam Research Corporation (NASDAQ:LRCX). Lam Research Corporation (NASDAQ:LRCX) designs, manufactures, and services semiconductor processing equipment. The one-month return of Lam Research Corporation (NASDAQ:LRCX) was 9.95%, and its shares gained 115.55% of their value over the last 52 weeks. On November 11, 2025, Lam Research Corporation (NASDAQ:LRCX) stock closed at $159.18 per share, with a market capitalization of $199.935 billion.

Carillon Eagle Growth & Income Fund stated the following regarding Lam Research Corporation (NASDAQ:LRCX) in its third quarter 2025 investor letter:

"Lam Research Corporation's (NASDAQ:LRCX) shares benefited from improving sentiment due to the importance of the company’s products within the semiconductor capital spending market. Following disappointments from semiconductor peers, Lam confirmed growth projections into next year with supportive bookings data. We believe Lam has a long path to growth moving forward as a leading provider of equipment tied to memory requirements for AI."

Lam Research Corporation (NASDAQ:LRCX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 85 hedge fund portfolios held Lam Research Corporation (NASDAQ:LRCX) at the end of the second quarter, which was 91 in the previous quarter. In the September quarter, Lam Research Corporation (NASDAQ:LRCX) reported revenue of $5.3 billion, representing an increase of 3% from prior quarter. While we acknowledge the potential of Lam Research Corporation (NASDAQ:LRCX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Lam Research Corporation (NASDAQ:LRCX) and shared the list of stocks Jim Cramer discussed. In its Q3 2025 investor letter, the Heartland Mid Cap Value Fund highlighted Lam Research Corporation (NASDAQ: LRCX) as a Strong Quality Value holding. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.