Lam Research Corporation (LRCX) is Benefitting from Cyclical Demand

Bailard Inc., an investment management company, released its third-quarter 2025 investor letter for “Bailard Technology Strategy”. A copy of the letter can be downloaded here. The strategy generated 9.36% net of fees in the quarter compared to the S&P North American Technology Index’s 13.14% return, the Morningstar U.S. Open-End Technology Categories’ 11.64% return, and the Lipper Science and Technology Fund Index’s 11.19% gain. The quarter showed improved technology fundamentals following the Q2 market rebound, driven by structural demand trends and evolving regulations across key verticals. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Bailard Technology Strategy 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 15.04%, and its shares gained 146.81% of their value over the last 52 weeks. On December 27, 2025, Lam Research Corporation (NASDAQ:LRCX) stock closed at $178.07 per share, with a market capitalization of $224.552 billion.

Bailard Technology Strategy stated the following regarding Lam Research Corporation (NASDAQ:LRCX) in its third quarter 2025 investor letter:

"Lam Research Corporation (NASDAQ:LRCX) (+110 bps; +37.84%) – Benefiting from cyclical demand in wafer equipment and U.S. semiconductor onshoring, Lam remains well-positioned in memory fabrication tools amid accelerating AI infrastructure investment."

Lam Research Corporation (NASDAQ:LRCX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 93 hedge fund portfolios held Lam Research Corporation (NASDAQ:LRCX) at the end of the third quarter, up from 85 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 best performing S&P 500 stocks in 2025. 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.