Fremont, California-based Lam Research Corporation (LRCX) designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. With a market cap of $103.3 billion, the company offers ALTUS systems to deposit conformal films for tungsten metallization applications, SABRE electrochemical deposition products for copper interconnect transition that offer copper damascene manufacturing, and VECTOR plasma-enhanced CVD products.

Companies worth $10 billion or more are generally described as "large-cap stocks." LRCX fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the semiconductor equipment and materials industry. LRCX benefits from a strong global presence with core competencies in areas like nanoscale applications enablement, chemistry, plasma and fluidics, and advanced systems engineering.

LRCX stock is trading 27% below its 52-week high of $113, achieved on Jul. 11 last year. Shares of LRCX have gained 7.5% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 2.1% rise over the same time frame.

However, LRCX has underperformed the broader market over the past year, declining 11.5%, compared to NASDAQ’s 15% surge. In contrast, the stock is up 14.1% year-to-date compared to NASX’s marginal dip.

LRCX has been trading above its 200-day moving average since mid-May and over its 50-day moving average since early May.

On Apr. 23, LRCX stock climbed 5.1% following the release of its Q3 earnings. The company reported an 8% year-over-year increase in its revenue, which came in at $4.7 billion and surpassed the Street’s forecasts. Moreover, the company’s gross margin rose by 160 bps from the prior year’s quarter to $49%. LRCX’s adjusted earnings for the quarter amounted to $1.04 and surpassed the consensus estimates by 4%.

Its rival, Applied Materials, Inc. (AMAT), has lagged behind the stock, with its shares declining 3.3% on a YTD basis and 26.9% over the past year.

Analysts are moderately bullish on LRCX stock’s potential. The stock has a consensus rating of “Moderate Buy” from 30 analysts covering it, and the mean price target of $91.08 suggests a premium of 10.4% to current price levels.