Lam Research Corporation (NASDAQ:LRCX) is one of the stocks Jim Cramer talked about, along with the memory shortage. Cramer highlighted the reason for the stock’s tremendous rally in 2025 and to date in 2026, as he remarked:
Again, as with Taiwan Semi, this isn’t about memory chips. In this case, it’s CPUs that Intel can’t make enough of. That means more business for the capital equipment makers, especially Lam Research. CPUs are their bread and butter. Lam’s also one of the leading providers of the type of equipment used to make memory chips. So they’ll be one of the first companies to benefit as the memory and data storage companies look to boost their productions, which I know they want to. That’s why this stock rallied 137% last year before tackling on another 39% gain in January. Now, some of these semiconductor capital equipment companies will be reporting earnings in the next few days… While I expect all these companies to report great numbers, the bar is now incredibly high, given how much their stocks have run. So I can’t say for sure how their stocks will react as they are what I say coming in hot.
A laptop and a computer monitor display a detailed stock market technical analysis chart. Photo by Jakub Zerdzicki on Pexels
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.
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.
