Is Lam Research a Better Buy Than GLOBALFOUNDRIES?
GLOBALFOUNDRIES surged 15% during the past day. You may be tempted to buy more or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Lam Research gives you more. Lam Research (LRCX) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs GLOBALFOUNDRIES (GFS) stock, suggesting you may be better off investing in LRCX
- LRCX’s quarterly revenue growth was 23.8%, vs. GFS’s 3.1%.
- In addition, its Last 12 Months revenue growth came in at 26.5%, ahead of GFS’s 0.8%.
- LRCX leads on profitability over both periods – LTM margin of 34.3% and 3-year average of 31.1%.
These differences become even clearer when you look at the financials side by side. The table highlights how GFS’s fundamentals stack up against those of LRCX on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| GFS | LRCX | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 54.7 | 50.9 | LRCX |
| Revenue Growth | |||
| Last Quarter | 3.1% | 23.8% | LRCX |
| Last 12 Months | 0.8% | 26.5% | LRCX |
| Last 3 Year Average | -5.0% | 7.5% | LRCX |
| Operating Margins | |||
| Last 12 Months | 12.1% | 34.3% | LRCX |
| Last 3 Year Average | 12.6% | 31.1% | LRCX |
| Momentum | |||
| Last 3 Year Return | 42.8% | 428.3% | LRCX |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See detailed fundamentals on Buy or Sell LRCX Stock and Buy or Sell GFS Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| GFS Return | 40% | -17% | 12% | -29% | -19% | 103% | 53% | ||
| LRCX Return | 54% | -41% | 89% | -7% | 139% | 71% | 554% | <=== | |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 9% | 98% | ||
| Monthly Win Rates [3] | |||||||||
| GFS Win Rate | 67% | 58% | 58% | 33% | 33% | 80% | 55% | ||
| LRCX Win Rate | 67% | 33% | 58% | 42% | 58% | 80% | 56% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| GFS Max Drawdown | – | -51% | -32% | -41% | -34% | -17% | -35% | ||
| LRCX Max Drawdown | -18% | -56% | -19% | -38% | -33% | -20% | -31% | ||
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | -13% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 5/21/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read LRCX Dip Buyer Analyses and GFS Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about GFS or LRCX? Consider a portfolio approach.
Portfolios Over Individual Stock Picks
Stocks soar and sink – the key is staying invested. A balanced portfolio helps you ride market volatility, boosts gains, and reduces single stock risk.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.