Jim Cramer on Lam Research: "I Think It's Going Higher"

Lam Research Corporation (NASDAQ:LRCX) is one of the stocks Jim Cramer talked about. When a caller mentioned that they have a position in the stock, Cramer commented:

I want you to buy more. I want you to buy more. Lam has got the best intellectual property of any technology company, I’m not kidding, that is in that industry. And I think that you should average down. I don’t care where you paid. I think it’s going higher.

Lam Research Corporation (NASDAQ:LRCX) develops equipment for depositing, etching, and cleaning semiconductor materials. It includes systems for tungsten and copper metallization, plasma and atomic-layer deposition, dielectric and conductor etch, and wafer cleaning. During the February 2 episode, Cramer mentioned the stock while highlighting noteworthy S&P 500 stocks and stated:

Speaking of capacity, I want to jump to the sixth best performer in the S&P in January because it’s Lam Research, LRCX. Now, this is a semiconductor capital equipment maker. This is who you call when you want to boost your chip production. Lam reported great results on Thursday night, yet it suffered the same fate as Western Digital, brief gains after the open on Friday, leading to a nearly 6% decline.

I’m a big believer in the semiconductor capital equipment makers. They do make me skeptical about the continued outperformance of the storage plays because, as this new machinery comes online, again, it will mediate those chip shortages. But that’s not going to happen anytime soon. I’m thinking it may be a late ‘27, early 2028 thing. Put a quarter of the position on it if you want to buy Lam Research, and then leg in. I think it’s really worth doing.

While we acknowledge the potential of 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.

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