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LRCX vs NVMI
Which Stock Would AI Choose? Lam Research (LRCX) vs. Nova Ltd. (NVMI) Stock Comparison
Key Takeaways
- Lam Research (LRCX) and Nova Ltd. (NVMI) both operate in the semiconductor equipment sector, but with vastly different scales — LRCX commands a market capitalization roughly 28 times larger than NVMI.
- LRCX has delivered a stronger one-year total return (over +212%) compared to NVMI (approximately +58%), though both have experienced notable pullbacks in recent weeks.
- NVMI has shown superior recent revenue growth momentum at approximately 31% year-over-year versus LRCX at roughly 24%, signaling different stages of their respective growth trajectories.
- Both stocks carry elevated valuation multiples, with trailing P/E (price-to-earnings) ratios above 50, reflecting premium pricing typical of high-growth semiconductor equipment names.
- LRCX benefits from deep ties to leading-edge wafer fabrication, while NVMI's specialized metrology and process control niche offers a different risk-reward profile tied to advanced node manufacturing.
- Volatility has been elevated for both names in recent market activity, with NVMI experiencing a somewhat steeper one-month decline, underscoring the sector-wide sensitivity to broader market sentiment.
Introduction
Comparing LRCX and NVMI places two semiconductor equipment players under the same analytical lens — one a dominant force in wafer fabrication equipment and the other a specialized leader in metrology and process control. Both stocks have attracted strong investor interest amid the global push for advanced chip manufacturing, yet their scale, growth dynamics, and market positioning differ markedly. This stock comparison is particularly relevant for investors seeking exposure to the semiconductor capital equipment theme but weighing the trade-offs between a large-cap industry pillar and a mid-cap specialist with a narrower focus and distinct growth profile.
LRCX Overview and Recent Performance
Lam Research Corporation (LRCX) is one of the world's foremost suppliers of wafer fabrication equipment, specializing in etch and deposition technologies critical to producing advanced semiconductors. Headquartered in Fremont, California, the company serves leading chipmakers globally and consistently ranks among the top five IC (integrated circuit) manufacturing equipment suppliers by revenue. Over the trailing twelve months, LRCX generated approximately $21.7 billion in revenue, with a gross margin near 49%, underscoring the company's pricing power and operational efficiency.
In recent market activity, LRCX shares have demonstrated remarkable longer-term strength, posting a one-year gain exceeding 212%. However, the stock has faced a pullback of approximately 16% over the past month, reflecting broader rotation and profit-taking pressures within the semiconductor sector. The company's trailing P/E ratio sits near 59, while its forward P/E of roughly 40 suggests analysts anticipate continued earnings growth. LRCX's beta of 1.80 indicates higher volatility relative to the broader market. Recent quarterly performance has been supported by robust demand from memory and logic chip customers, though trade policy uncertainty and geopolitical factors continue to influence sentiment around the stock.
NVMI Overview and Recent Performance
Nova Ltd. (NVMI), headquartered in Rehovot, Israel, designs and manufactures process control and metrology systems used throughout the semiconductor manufacturing lifecycle. The company's platforms enable dimensional, films, and materials measurements for critical process steps including lithography, etch, chemical mechanical planarization (CMP), and advanced packaging. With trailing twelve-month revenue of approximately $903 million and a net income of about $264 million, NVMI operates at a significantly smaller scale than LRCX but has carved out a defensible niche in the semiconductor quality-control ecosystem.
NVMI shares have appreciated roughly 58% over the past year, a strong showing though notably less dramatic than LRCX's surge. In recent weeks, the stock has experienced a decline of roughly 21%, reflecting sharper near-term selling pressure. The company's trailing P/E ratio stands near 55, with a forward P/E of approximately 41. Revenue growth has been robust at roughly 31% year-over-year for the most recently completed fiscal year, driven by increasing adoption of advanced metrology tools as chip architectures become more complex. NVMI's beta of 1.74 places it in a similar volatility category as LRCX. Analysts remain broadly constructive, with a consensus price target implying meaningful upside from current levels.
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Head-to-Head Comparison
When comparing LRCX and NVMI, the most immediate distinction is scale. LRCX, with a market capitalization near $392 billion and trailing revenue exceeding $21 billion, operates as a cornerstone supplier across multiple segments of wafer fabrication. NVMI, at roughly $13.9 billion in market cap and around $903 million in revenue, occupies a more focused role in metrology and process control. This size disparity translates into different growth dynamics: NVMI's smaller revenue base has enabled faster percentage growth (31% versus 24% for LRCX in their most recent fiscal years), though LRCX generates substantially higher absolute profit.
From a valuation standpoint, both stocks trade at elevated multiples, reflecting the premium the market assigns to semiconductor equipment exposure during an AI-driven chip investment cycle. LRCX's trailing P/E of approximately 59 and forward P/E near 40 compare closely with NVMI's trailing P/E of roughly 55 and forward P/E near 41. Neither offers a clear valuation advantage on these metrics alone. However, LRCX's gross margin near 49% slightly trails NVMI's gross margin, which has been trending above 57%, reflecting the higher-margin nature of metrology and inspection tools relative to capital-intensive etch and deposition systems.
Risk profiles differ as well. LRCX's revenue base is more geographically diversified and less susceptible to any single customer or application segment, while NVMI's narrower focus means its fortunes are more tightly linked to adoption rates of advanced metrology in next-generation nodes. On the other hand, NVMI's specialization could prove advantageous if process control tools see disproportionate demand growth as chip complexity intensifies. Both stocks carry above-market beta values — LRCX at 1.80, NVMI at 1.74 — and have exhibited elevated volatility in recent trading sessions, with NVMI's one-month decline of roughly 21% meaningfully exceeding LRCX's approximately 16% pullback.
Tickeron AI Verdict
Based on observable trend consistency, relative positioning, and the nature of each company's exposure to semiconductor industry tailwinds, Tickeron's AI analytical framework would likely express a moderate preference for LRCX in the current environment. The larger company's broader revenue base, deeper installed equipment footprint, and stronger trailing one-year price momentum — coupled with a slightly less severe recent pullback — suggest greater relative stability amid choppy market conditions. NVMI's compelling growth rate and specialized metrology niche remain attractive attributes, but the stock's sharper recent drawdown and smaller-scale business introduce incrementally higher uncertainty. That said, this assessment is probabilistic rather than definitive; both companies remain well-positioned to benefit from the secular expansion of semiconductor manufacturing, and relative performance could shift rapidly with new data. The AI verdict reflects a snapshot of prevailing conditions rather than a permanent judgment on either company's long-term prospects.
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 Hold and NVMI is a Hold.
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 whileNVMI’s FA Score has 2 green FA rating(s).
- LRCX’s FA Score: 3 green, 2 red.
- NVMI’s FA Score: 2 green, 3 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 4 TA indicator(s) are bullish while NVMI’s TA Score has 2 bullish TA indicator(s).
- LRCX’s TA Score: 4 bullish, 6 bearish.
- NVMI’s TA Score: 2 bullish, 6 bearish.
Price Growth
LRCX (@Electronic Production Equipment) experienced а -0.37% price change this week, while NVMI (@Electronic Production Equipment) price change was +0.94% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -0.44%. For the same industry, the average monthly price growth was -16.66%, and the average quarterly price growth was +46.93%.
Reported Earning Dates
LRCX is expected to report earnings on Jul 29, 2026.
NVMI is expected to report earnings on Aug 06, 2026.
Industries' Descriptions
@Electronic Production Equipment (-0.44% 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.
| LRCX | NVMI | LRCX / NVMI | |
| Capitalization | 400B | 14.5B | 2,759% |
| EBITDA | 8.07B | 284M | 2,842% |
| Gain YTD | 87.165 | 38.667 | 225% |
| P/E Ratio | 60.45 | 57.14 | 106% |
| Revenue | 21.7B | 903M | 2,403% |
| Total Cash | 1.68B | 1.1B | 153% |
| Total Debt | 3.73B | 800M | 467% |
LRCX | NVMI | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 64 | 54 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 87 Overvalued | 68 Overvalued | |
PROFIT vs RISK RATING 1..100 | 20 | 23 | |
SMR RATING 1..100 | 17 | 42 | |
PRICE GROWTH RATING 1..100 | 37 | 60 | |
P/E GROWTH RATING 1..100 | 7 | 19 | |
SEASONALITY SCORE 1..100 | 65 | 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.
NVMI's Valuation (68) in the Electronic Production Equipment industry is in the same range as LRCX (87). This means that NVMI’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's Profit vs Risk Rating (20) in the Electronic Production Equipment industry is in the same range as NVMI (23). This means that LRCX’s stock grew similarly to NVMI’s over the last 12 months.
LRCX's SMR Rating (17) in the Electronic Production Equipment industry is in the same range as NVMI (42). This means that LRCX’s stock grew similarly to NVMI’s over the last 12 months.
LRCX's Price Growth Rating (37) in the Electronic Production Equipment industry is in the same range as NVMI (60). This means that LRCX’s stock grew similarly to NVMI’s over the last 12 months.
LRCX's P/E Growth Rating (7) in the Electronic Production Equipment industry is in the same range as NVMI (19). This means that LRCX’s stock grew similarly to NVMI’s over the last 12 months.
| LRCX | NVMI | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 73% | N/A |
| Stochastic ODDS (%) | 2 days ago 89% | 2 days ago 82% |
| Momentum ODDS (%) | 2 days ago 76% | 2 days ago 71% |
| MACD ODDS (%) | 2 days ago 65% | 2 days ago 67% |
| TrendWeek ODDS (%) | 2 days ago 62% | 2 days ago 80% |
| TrendMonth ODDS (%) | 2 days ago 68% | 2 days ago 70% |
| Advances ODDS (%) | 16 days ago 83% | 2 days ago 78% |
| Declines ODDS (%) | 5 days ago 63% | 5 days ago 69% |
| BollingerBands ODDS (%) | 2 days ago 88% | N/A |
| Aroon ODDS (%) | 2 days ago 84% | 2 days ago 69% |
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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 89% 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% | +0.15% | ||
| AMAT - LRCX | 89% Closely correlated | +1.60% | ||
| KLAC - LRCX | 88% Closely correlated | +1.88% | ||
| NVMI - LRCX | 84% Closely correlated | +0.21% | ||
| ASML - LRCX | 84% Closely correlated | +0.06% | ||
| RMBS - LRCX | 80% Closely correlated | -0.62% | ||
More | ||||
NVMI and
Correlation & Price change
A.I.dvisor indicates that over the last year, NVMI has been closely correlated with LRCX. These tickers have moved in lockstep 84% of the time. This A.I.-generated data suggests there is a high statistical probability that if NVMI jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To NVMI | 1D Price Change % | ||
|---|---|---|---|---|
| NVMI | 100% | +0.21% | ||
| LRCX - NVMI | 84% Closely correlated | +0.15% | ||
| AMAT - NVMI | 80% Closely correlated | +1.60% | ||
| KLAC - NVMI | 78% Closely correlated | +1.88% | ||
| ASML - NVMI | 77% Closely correlated | +0.06% | ||
| CAMT - NVMI | 76% Closely correlated | -1.02% | ||
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