Is Lam Research Stock Outperforming Its Rivals?
With Lam Research surging 16% in a Month, it makes sense to re-evaluate vs its peers. Consistently assessing alternatives is core to a sound investment approach. Here is how Lam Research (LRCX) stock stacks up against its peers in size, valuation, growth and margin.
- LRCX’s operating margin of 33.0% is high, higher than most peers though lower than KLAC (41.8%).
- LRCX’s revenue growth of 25.7% in the last 12 months is strong, outpacing AMAT, KLAC, ADI, ICHR.
- LRCX gained 111.2% in the past year, outperforming its peers, and currently trades at a PE of 34.6
As a quick background, Lam Research provides semiconductor processing equipment and services for integrated circuit fabrication to customers worldwide, including the US, China, Europe, Japan, Korea, Southeast Asia, and Taiwan.
A single stock can be risky, but there is a huge value to a broader, diversified approach. If you seek an upside with less volatility than holding an individual stock, consider the Trefis High Quality Portfolio (HQ). HQ has outperformed its benchmark — a combination of S&P 500, Russell, and S&P midcap index — and achieved returns exceeding 105% since its inception. Risk management is key — consider what the long-term portfolio performance could be if you blended 10% commodities, 10% gold, and 2% crypto with HQ’s performance metrics.
| LRCX | AMAT | KLAC | ADI | ICHR | |
|---|---|---|---|---|---|
| Market Cap ($ Bil) | 201.3 | 182.5 | 156.9 | 115.4 | 0.5 |
| Revenue ($ Bil) | 19.6 | 28.6 | 12.5 | 10.4 | 1.0 |
| PE Ratio | 34.6 | 26.7 | 37.0 | 58.9 | -12.8 |
| LTM Revenue Growth | 25.7% | 6.6% | 22.1% | 7.1% | 16.9% |
| LTM Operating Margin | 33.0% | 30.1% | 41.8% | 25.3% | -2.8% |
| LTM FCF Margin | 28.3% | 20.4% | 30.9% | 35.4% | -2.0% |
| 12M Market Return | 111.2% | 22.5% | 80.5% | 7.7% | -54.0% |
Why does this matter? LRCX just went up 15.5% in a month – peer comparison puts stock performance, valuation, and financials in context – highlighting whether it is truly outperforming, lagging behind, and above all – can this continue? Read Buy or Sell LRCX Stock to see if Lam Research holds up as a quality investment. Furthermore, there is always a risk of fall after a strong rally – see how the stock has dipped and recovered in the past through LRCX Dip Buyer Analysis lens.
Revenue Growth Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| LRCX | 25.7% | 23.7% | -14.5% | 1.2% | |
| AMAT | 6.6% | – | 2.5% | 2.8% | 11.8% |
| KLAC | 22.1% | 23.9% | -6.5% | 13.9% | |
| ADI | 7.1% | – | -23.4% | 2.4% | 64.2% |
| ICHR | 16.9% | – | 4.7% | -36.6% | 16.7% |
Operating Margin Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| LRCX | 33.0% | 32.0% | 28.7% | 29.9% | |
| AMAT | 30.1% | – | 28.9% | 28.9% | 30.2% |
| KLAC | 41.8% | 41.2% | 37.1% | 38.1% | |
| ADI | 25.3% | – | 22.0% | 32.4% | 29.6% |
| ICHR | -2.8% | – | -0.9% | -1.3% | 6.7% |
PE Ratio Comparison
| LTM | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
| LRCX | 34.6 | 17.3 | 26.9 | 12.6 | |
| AMAT | 26.7 | – | 18.7 | 19.9 | 13.0 |
| KLAC | 37.0 | 20.6 | 28.5 | 15.5 | |
| ADI | 58.9 | – | 64.5 | 30.1 | 31.0 |
| ICHR | -12.8 | – | -50.7 | -22.8 | 10.6 |
While peer comparison is critical, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.