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LRCX vs NVDA
Which Stock Would AI Choose? Lam Research Corporation (LRCX) vs. NVIDIA Corporation (NVDA) Stock Comparison
Key Takeaways
- Lam Research’s (LRCX) equipment demand remains strong, supporting steady earnings growth, while NVIDIA (NVDA) continues to dominate AI chip market despite recent volatility.
- Both stocks have outperformed the broader S&P 500 over the past month, but NVDA’s price swing has been wider due to macro‑sentiment shifts.
- LRCX benefits from a diversified semiconductor client base and a solid order backlog; NVDA’s upside hinges on sustained AI adoption and data‑center growth.
- Risk factors differ: LRCX faces cyclicality of chip fabs, whereas NVDA is sensitive to regulatory scrutiny and valuation compressions.
- On a risk‑adjusted basis, Tickeron’s AI models currently lean toward LRCX for stability, but NVDA offers higher upside potential if AI demand stays robust.
Introduction
Lam Research Corporation (LRCX) and NVIDIA Corporation (NVDA) are two marquee names shaping the semiconductor ecosystem—LRCX as a provider of wafer‑fabrication equipment and NVDA as a leading designer of graphics processing units (GPUs) that power artificial‑intelligence (AI) workloads. Traders and investors seeking exposure to the rapid evolution of AI‑driven chips find this comparison relevant, as both stocks represent distinct pathways to capture growth in the same overarching market.
LRCX Overview and Recent Performance
Lam Research supplies critical deposition, etch, and clean technologies used in semiconductor manufacturing. In recent weeks, the company reported second‑quarter 2024 earnings that beat consensus estimates, posting earnings per share (EPS) of $2.47 versus the $2.42 forecast and revenue of $4.39 billion, up 7% year‑over‑year. Management highlighted a resilient order backlog, now exceeding $30 billion, and strong demand from leading fabs transitioning to advanced‑node (sub‑5 nm) production. The positive earnings surprise propelled LRCX shares to rally roughly 4% on the news, keeping the stock above the 200‑day moving average.
Key drivers include the ongoing rollout of AI‑focused chips that require sophisticated process equipment, as well as the firm’s strategic focus on high‑margin services. However, the company remains exposed to the cyclical nature of semiconductor capital spending and supply‑chain constraints that could temper near‑term growth.
NVDA Overview and Recent Performance
NVIDIA designs GPUs that have become the de‑facto standard for AI inference and training. The firm’s fiscal‑year‑2025 second‑quarter results, released in early May, posted record revenue of $13.5 billion (a 23% increase year‑over‑year) and EPS of $2.70, surpassing the $2.57 consensus. Data‑center sales—driven by AI‑accelerated workloads—grew 35%, while the Gaming segment remained steady. Following the earnings beat, NVDA’s stock experienced a mixed reaction: it initially surged 3% but later settled into a 2% net gain as analysts reassessed valuation metrics, placing the price‑to‑earnings (P/E) ratio near 74×, well above the sector average.
Recent market sentiment reflects both optimism about AI adoption and caution due to heightened regulatory scrutiny in the United States and Europe, as well as macro‑economic pressures that have pressured high‑growth tech stocks. Nevertheless, NVIDIA’s product roadmap—including the upcoming Hopper architecture—continues to position the company at the forefront of AI acceleration.
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Head-to-Head Comparison
- Business Model: LRCX sells capital equipment and consumables to semiconductor fabs, generating revenue from product sales and service contracts. NVDA designs proprietary GPUs and licenses software, earning primarily from product sales and recurring data‑center subscriptions.
- Growth Drivers: LRCX’s growth is tied to fab upgrades for advanced nodes and the broader shift to AI‑centric chips. NVDA’s growth is propelled by AI‑driven demand for GPUs, data‑center expansion, and software ecosystem (CUDA, AI frameworks).
- Recent Momentum: Both stocks posted earnings beats, but LRCX’s price action has been smoother (+4% after earnings). NVDA’s price has shown higher volatility, swinging between +3% and –2% as investors digest valuation concerns.
- Risk Factors: LRCX faces cyclical capex reductions and potential supply‑chain bottlenecks. NVDA contends with regulatory risk, valuation compression, and reliance on a limited number of large customers for data‑center revenue.
- Sector Exposure: LRCX is classified within the Semiconductor Equipment & Materials industry, while NVDA belongs to the Semiconductors—Integrated Devices sector; both are core components of the broader Technology sector.
- Market Sentiment: Analyst consensus remains bullish on both, yet target‑price revisions for NVDA have been more frequent, reflecting heightened sensitivity to macro‑economic shifts.
Tickeron AI Verdict
Based on recent trend consistency, earnings momentum, and relative risk profile, Tickeron’s AI models currently assign a modest edge to Lam Research (LRCX) for investors prioritizing stability and steady growth. However, the models also recognize NVIDIA’s (NVDA) superior upside potential should AI‑specific demand sustain its trajectory, implying a probabilistic tilt rather than an absolute recommendation.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is LRCX is a Buy and NVDA is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LRCX’s FA Score shows that 3 FA rating(s) are green whileNVDA’s FA Score has 1 green FA rating(s).
- LRCX’s FA Score: 3 green, 2 red.
- NVDA’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
LRCX’s TA Score shows that 3 TA indicator(s) are bullish while NVDA’s TA Score has 4 bullish TA indicator(s).
- LRCX’s TA Score: 3 bullish, 5 bearish.
- NVDA’s TA Score: 4 bullish, 4 bearish.
Price Growth
LRCX (@Electronic Production Equipment) experienced а -2.17% price change this week, while NVDA (@Semiconductors) price change was -6.45% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -5.88%. For the same industry, the average monthly price growth was -5.32%, and the average quarterly price growth was +104.94%.
The average weekly price growth across all stocks in the @Semiconductors industry was -14.22%. For the same industry, the average monthly price growth was -1.45%, and the average quarterly price growth was +76.28%.
Reported Earning Dates
LRCX is expected to report earnings on Aug 05, 2026.
NVDA is expected to report earnings on Aug 26, 2026.
Industries' Descriptions
@Electronic Production Equipment (-5.88% weekly)The electronic production equipment industry makes equipment used to produce semiconductors. Such equipment includes wafer fabrication, plasma etching and photo-resist processing equipment. The industry also makes chemical vapor deposition processing systems and photomasks, which are high-purity quartz plates that contain patterns to define integrated circuits layouts. Applied Materials, Inc., Lam Research Corporation, and KLA-Tencor Corporation are examples of electronic production equipment manufacturing companies.
@Semiconductors (-14.22% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| LRCX | NVDA | LRCX / NVDA | |
| Capitalization | 409B | 5.04T | 8% |
| EBITDA | 8.07B | 193B | 4% |
| Gain YTD | 91.350 | 11.771 | 776% |
| P/E Ratio | 61.84 | 31.88 | 194% |
| Revenue | 21.7B | 253B | 9% |
| Total Cash | 4.75B | 80.6B | 6% |
| Total Debt | 3.73B | 12.3B | 30% |
LRCX | NVDA | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 88 | 67 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | 78 Overvalued | |
PROFIT vs RISK RATING 1..100 | 2 | 7 | |
SMR RATING 1..100 | 100 | 100 | |
PRICE GROWTH RATING 1..100 | 2 | 44 | |
P/E GROWTH RATING 1..100 | 6 | 82 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
NVDA's Valuation (78) in the Semiconductors industry is in the same range as LRCX (88) in the Electronic Production Equipment industry. This means that NVDA’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's Profit vs Risk Rating (2) in the Electronic Production Equipment industry is in the same range as NVDA (7) in the Semiconductors industry. This means that LRCX’s stock grew similarly to NVDA’s over the last 12 months.
LRCX's SMR Rating (100) in the Electronic Production Equipment industry is in the same range as NVDA (100) in the Semiconductors industry. This means that LRCX’s stock grew similarly to NVDA’s over the last 12 months.
LRCX's Price Growth Rating (2) in the Electronic Production Equipment industry is somewhat better than the same rating for NVDA (44) in the Semiconductors industry. This means that LRCX’s stock grew somewhat faster than NVDA’s over the last 12 months.
LRCX's P/E Growth Rating (6) in the Electronic Production Equipment industry is significantly better than the same rating for NVDA (82) in the Semiconductors industry. This means that LRCX’s stock grew significantly faster than NVDA’s over the last 12 months.
| LRCX | NVDA | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 56% | 2 days ago 70% |
| Stochastic ODDS (%) | 2 days ago 71% | 2 days ago 87% |
| Momentum ODDS (%) | 2 days ago 74% | 2 days ago 76% |
| MACD ODDS (%) | 2 days ago 58% | 2 days ago 78% |
| TrendWeek ODDS (%) | 2 days ago 63% | 2 days ago 72% |
| TrendMonth ODDS (%) | 2 days ago 81% | 2 days ago 74% |
| Advances ODDS (%) | 2 days ago 82% | 28 days ago 83% |
| Declines ODDS (%) | 6 days ago 64% | 8 days ago 68% |
| BollingerBands ODDS (%) | 2 days ago 69% | 2 days ago 90% |
| Aroon ODDS (%) | 2 days ago 81% | 2 days ago 80% |
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LRCX and
Correlation & Price change
A.I.dvisor indicates that over the last year, LRCX has been closely correlated with AMAT. These tickers have moved in lockstep 87% of the time. This A.I.-generated data suggests there is a high statistical probability that if LRCX jumps, then AMAT could also see price increases.
| Ticker / NAME | Correlation To LRCX | 1D Price Change % | ||
|---|---|---|---|---|
| LRCX | 100% | +0.84% | ||
| AMAT - LRCX | 87% Closely correlated | +1.43% | ||
| KLAC - LRCX | 86% Closely correlated | +1.49% | ||
| NVMI - LRCX | 80% Closely correlated | +1.29% | ||
| ASML - LRCX | 80% Closely correlated | +1.64% | ||
| RMBS - LRCX | 80% Closely correlated | -3.42% | ||
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