LRCX - Lam Research Corporation

Valuation too high after tripling, sold 70%, holds remainder for potential further upside but sees better risk/reward elsewhere

Breaking critical uptrends, continued downside pressure expected due to AI infrastructure weakness and leverage-driven selloffs.

Cheap hardware stock, trimming on constant basis, printing cash. No new buys.

Lamb Research builds the precision etching machines required to create the microscopic layers in high-bandwidth memory (HBM) chips. The host describes them as a 'hidden gem' in AI, noting that without their equipment, there would be no HBM, and consequently no Nvidia, AMD, or other chip companies. As memory demand increases, Lamb Research's equipment becomes essential.

Lam Research builds the machines that create the microscopic layers in modern HBM chips. Memory chips are built vertically with hundreds of layers that must be etched with incredible precision. Without Lam Research, modern HBM becomes much harder to manufacture. NVIDIA needs HBM, and HBM needs Lam Research. Described as a 'real hidden gem' and 'winner for sure.'

Lam Research at ~3-4% of portfolio, down from 6-7% at peak. He bought at $80 and the stock is now near $400 (400% gain). He has trimmed aggressively because the forward P/E of 50 is the highest ever for this cyclical stock. He keeps a small position for 'mental sanity' — if he's wrong and the AI cycle continues, he doesn't want to miss out entirely. He prefers Fortinet and MSCI over Lam Research for risk-reward.

Up 8% in overnight markets after being entered into the S&P 500 on Friday night.

Nour used the proceeds from selling OXY to buy Lam Research, which doubled in 2025. He expresses satisfaction with this move and cites it as an example of redeploying capital into better opportunities.

Kristophe sold almost his entire position in Lam Research after it doubled/tripled in 2025. He reduced exposure because he doesn't like the capex supercycle and believes semis may be in a bubble. He retains only a tiny residual position.

Tepper trimmed Lam Research slightly, likely reallocating to other chip names like SanDisk.