$LRCX (+1,73%) After the weak $ASML (+5,82%) earnings, I took a quick look at Lam Research and noticed a few things:
- Lam is quite attractively valued
- Lam is particularly strong in 2 areas:
- Asia (China 40%, Korea 18%)
- Secondary semiconductors (memory, IoT, etc)
- Lam has a significantly higher service share (than ASML) of approx. 40%
ASML has warned of weak China and Korea sales, as sales are more likely to shift towards EUV and US (US accounted for almost 20pp more sales share than in the previous quarter)
This does not bode well for LAM. We could see weak numbers here in 3 days (earnings) as Asia and secondary semiconductors are not performing.
However, LAM is also somewhat different:
- There have already been share price losses
- LAM presented strong figures last quarter (in contrast to ASML)
- LAM is not so strongly restricted by the US authorities
- LAM has a high service share, which should limit the downside potential
I would like to buy LAM, but not at this risk. That's why I'm waiting for the earnings to come in.