We recently compiled a list of 35 trending AI stocks with the latest analyst ratings and news. In this article, we’ll take a look at how Lam Research Corporation (NASDAQ:LRCX) stands compared to other trending AI stocks.
As earnings season approaches, investors are paying close attention to how S&P 500 companies’ artificial intelligence (AI) investments are performing. Analysts expect profit growth to slow, with S&P 500 earnings expected to grow 5.3% year over year, slowing from 13.2% growth in the second quarter, Reuters reported. There is. The technology and communications services sector is expected to show the highest year-over-year growth, with technology revenue expected to increase by 15.4% and communications services by 12.3%. AI companies have dominated the performance since last year, driving the market’s significant rise. The S&P 500 index is currently at a new all-time high, up about 21% year-to-date, driven primarily by strong performance in the tech and communications sectors.
To learn more about these trends, visit Goldman Sachs’ 10 Unsexy AI Stocks and Goldman Sachs’ 10 Hottest AI Stocks.
Howard Chan, CEO of Kurv Investment Management, notes that analysts are keen to assess how major companies are monetizing their AI initiatives, and those that succeed in this regard are particularly rewarded. I did. For example, Meta experienced a sharp rise in its stock price after forecasting strong revenue growth, suggesting that its digital ad revenue is effectively funding its AI investments. Conversely, spending on AI technology by giants like Google raises questions about its integration with existing business models. The S&P 500 trades at 22.3 times expected 12-month earnings, above its long-term average of 15.7 times, and many investors expect this quarter’s earnings to justify higher stock valuations. Sorita Marcelli of UBS Global Wealth Management is optimistic that the upcoming third quarter results could bring further gains, especially as the semiconductor sector remains a focus for AI investments. Showed.
To learn more about these developments, visit BlackRock’s 30 Most Important AI Stocks and Beyond the Tech Giants: 35 Non-Technology AI Opportunities.
our methodology
In this article, we selected AI stocks by examining news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
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A technician operates an automatic semiconductor processing machine with laser precision.
Lam Research Corporation (NASDAQ:LRCX)
Number of hedge fund holders: 84 people
Lam Research Corporation (NASDAQ:LRCX) sells semiconductor processing equipment. Citi recently lowered its price target to $893 from $990 and maintained its rating on the stock at “buy.” The advisory updates our view of the semiconductor equipment sector and believes the equipment group is headed for a mid-cycle correction in the first half of 2025. Demand for artificial intelligence for servers remains strong, but consumer demand across PCs, smartphones and cars appears lackluster, it said. he told investors in a research note. Citi lowered its forecast and accordingly lowered its price target by 10%.
Overall, LRCX ranks 16th on our list of trending AI stocks. While we recognize LRCX’s potential as an investment, we believe some AI stocks have a better chance of delivering higher returns and in shorter time periods. If you’re looking for AI stocks with more promise than LRCX, but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: $30 trillion opportunity: 15 humanoid robot stocks to buy, according to Morgan Stanley and Jim Cramer, says NVIDIA has ‘become a wasteland.’
Disclosure: None. This article was originally published on Insider Monkey.
