Lam Research (LRCX) Needs to "Put Up Plants," Says Jim Cramer

We recently published 10 Stocks Jim Cramer Talked About.  Lam Research Corporation (NASDAQ:LRCX) is one of the stocks on Jim Cramer talked about.

Lam Research Corporation (NASDAQ:LRCX) is one of the few American companies that make and sell equipment used in semiconductor fabrication. Its shares are up by a whopping 192% over the past year. December was an important month for the firm as it saw several analysts share their thoughts about the stock. For instance, UBS reiterated a Buy rating and raised the share price target to $200 from $175. The boost came after B. Riley had hiked the share price target to $195 from $180 and kept a Buy rating. B. Riley explained that the chip equipment provider enjoyed a strong market position due to its exposure to the memory market. Before the analyst coverage, Cramer had also expressed optimism in Lam Research Corporation (NASDAQ:LRCX). Mizuho also hiked the target to $200 from $170 and kept a Buy rating based on wafer equipment estimates for 2026. In this appearance, the CNBC TV host stressed the need for more capital expenditure, likely due to his expectations for the AI market:

“Like Lam Research, we need them to put up plants.”

While we acknowledge the potential of LRCX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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