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LRCX vs ON
Which Stock Would AI Choose? Lam Research Corporation (LRCX) vs. ON Semiconductor Corporation (ON) Stock Comparison
Key Takeaways
- LRCX boasts a massive market cap of approximately $345 billion, dwarfing ON's $40 billion, reflecting its dominant position in semiconductor equipment.
- Year-to-date, ON leads with 89.6% gains versus LRCX's 61.3%, driven by recent earnings beats and AI data center demand.
- Both stocks surged over 160% in the past year, fueled by AI and semiconductor tailwinds, with LRCX at 275% and ON at 167%.
- LRCX trades at a trailing P/E of 52 with forward P/E of 33, while ON has a higher trailing P/E of 75 but similar forward at 35.
- Recent momentum favors ON with 50% one-month gains post-Q1 earnings, compared to LRCX's 12% amid strong AI equipment demand.
- Tickeron's AI bots highlight both in semiconductor strategies, with top performers showing up to 95% annualized returns.
Introduction
In the booming semiconductor sector, LRCX and ON represent distinct yet complementary plays on AI-driven demand and chip manufacturing growth. Lam Research Corporation specializes in wafer fabrication equipment like etch and deposition tools, while ON Semiconductor Corporation focuses on power management and sensing solutions for automotive and industrial applications. This stock comparison analyzes their recent performance, valuation, and market positioning, aiding traders seeking momentum in semiconductors and investors eyeing long-term AI exposure. With both benefiting from surging chip investments, understanding their relative strengths highlights trade-offs in growth, risk, and sector dynamics.
LRCX Overview and Recent Performance
Lam Research Corporation (LRCX) is a leading provider of semiconductor wafer fabrication equipment, specializing in etch, deposition, and clean processes essential for advanced chip production. In recent market activity, LRCX shares have shown robust momentum, closing around $276 with a year-to-date gain of 61% and over 275% in the past year, vastly outperforming the S&P 500. Recent weeks saw a 12% monthly rise and 31% three-month advance, propelled by strong Q1 fiscal 2026 earnings of $5.84 billion in revenue—beating estimates—and upbeat AI-driven demand for high-bandwidth memory and complex architectures. Analyst upgrades and price targets averaging $310 reflect optimism, though exposure to China adds geopolitical risk. Sentiment remains positive amid chip equipment spending surges.
ON Overview and Recent Performance
ON Semiconductor Corporation (ON) designs intelligent power and sensing semiconductors, targeting automotive electrification, industrial automation, and AI data centers. Shares recently traded near $103, delivering explosive 89.6% YTD and 167% one-year returns, fueled by sector recovery. Over recent weeks, ON rocketed 50% in the past month and 65% in three months, following Q1 2026 earnings that beat expectations with $1.51 billion revenue (up 4.7% YoY) and adjusted EPS of $0.64. Power solutions demand from EVs and AI infrastructure drove narrower losses, prompting analyst hikes like KeyBanc's $125 target. While industrial trends improve, automotive cyclicality poses risks, yet sentiment shifts positively on AI strength.
Trending AI Robots
Tickeron’s Trending AI Robots page curates the top 25 AI trading bots from over 351 total bots that trade thousands of tickers across stocks, ETFs, and crypto. These bots employ diverse strategies like AI/ML trend analysis, momentum rotation, and volatility plays on timeframes from 5 minutes to daily, tailored to current market conditions such as AI infrastructure and semiconductor surges. Standouts include semiconductor bots targeting LRCX, ON, NVDA, and peers, posting up to 94.8% annualized returns with 63% win rates and profit factors over 3. Overall, trending bots boast annualized returns of 23% to 169%, win rates of 51-88%, and profit factors up to 7.12. Explore these high performers to enhance your trading edge in dynamic sectors.
Head-to-Head Comparison
LRCX and ON operate in the semiconductor ecosystem but diverge in business models: LRCX's equipment focus yields high margins (33% operating) via a razor-and-blades service revenue stream, contrasting ON's fabless chip design emphasizing power efficiency for end-markets. Growth drivers differ—LRCX rides AI-fueled wafer fab investments, while ON leverages EV silicon carbide and data center power needs. Recent momentum tilts to ON's 50% monthly surge post-earnings versus LRCX's steadier 12%, though LRCX's larger scale offers stability. Risk factors include LRCX's China exposure and cyclical capex for both; ON faces auto slowdowns. Sector-wise, both tap semis, but LRCX aligns more purely with equipment cycles, while ON diversifies into industrials. Valuations show LRCX at a premium trailing P/E but comparable forward metrics, balancing growth trade-offs.
Tickeron AI Verdict
Tickeron’s AI currently leans toward LRCX for its trend consistency in AI equipment demand, superior scale, and recurring revenues, positioning it strongly amid sustained chip complexity growth. ON's recent momentum and earnings beats signal upside probability in power semis, but LRCX edges on stability and analyst targets implying 12% potential upside. Observable catalysts like fab spending favor LRCX's relative positioning in the near term.
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 Disclaimers and Limitations.
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 StrongBuy and ON 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 4 FA rating(s) are green whileON’s FA Score has 2 green FA rating(s).
- LRCX’s FA Score: 4 green, 1 red.
- ON’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 6 TA indicator(s) are bullish while ON’s TA Score has 4 bullish TA indicator(s).
- LRCX’s TA Score: 6 bullish, 4 bearish.
- ON’s TA Score: 4 bullish, 3 bearish.
Price Growth
LRCX (@Electronic Production Equipment) experienced а +14.50% price change this week, while ON (@Semiconductors) price change was +5.10% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +6.17%. For the same industry, the average monthly price growth was +29.19%, and the average quarterly price growth was +138.13%.
The average weekly price growth across all stocks in the @Semiconductors industry was +8.41%. For the same industry, the average monthly price growth was +47.14%, and the average quarterly price growth was +78.48%.
Reported Earning Dates
LRCX is expected to report earnings on Aug 05, 2026.
ON is expected to report earnings on Aug 03, 2026.
Industries' Descriptions
@Electronic Production Equipment (+6.17% 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 (+8.41% 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 | ON | LRCX / ON | |
| Capitalization | 370B | 42B | 881% |
| EBITDA | 8.07B | 1.52B | 532% |
| Gain YTD | 73.154 | 98.042 | 75% |
| P/E Ratio | 55.96 | 78.85 | 71% |
| Revenue | 21.7B | 6.06B | 358% |
| Total Cash | 4.75B | 2.4B | 198% |
| Total Debt | 3.73B | 3.01B | 124% |
LRCX | ON | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 76 | 27 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 83 Overvalued | 71 Overvalued | |
PROFIT vs RISK RATING 1..100 | 4 | 54 | |
SMR RATING 1..100 | 17 | 78 | |
PRICE GROWTH RATING 1..100 | 4 | 3 | |
P/E GROWTH RATING 1..100 | 7 | 6 | |
SEASONALITY SCORE 1..100 | 90 | 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.
ON's Valuation (71) in the Semiconductors industry is in the same range as LRCX (83) in the Electronic Production Equipment industry. This means that ON’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's Profit vs Risk Rating (4) in the Electronic Production Equipment industry is somewhat better than the same rating for ON (54) in the Semiconductors industry. This means that LRCX’s stock grew somewhat faster than ON’s over the last 12 months.
LRCX's SMR Rating (17) in the Electronic Production Equipment industry is somewhat better than the same rating for ON (78) in the Semiconductors industry. This means that LRCX’s stock grew somewhat faster than ON’s over the last 12 months.
ON's Price Growth Rating (3) in the Semiconductors industry is in the same range as LRCX (4) in the Electronic Production Equipment industry. This means that ON’s stock grew similarly to LRCX’s over the last 12 months.
ON's P/E Growth Rating (6) in the Semiconductors industry is in the same range as LRCX (7) in the Electronic Production Equipment industry. This means that ON’s stock grew similarly to LRCX’s over the last 12 months.
| LRCX | ON | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 55% | 2 days ago 69% |
| Stochastic ODDS (%) | 2 days ago 64% | N/A |
| Momentum ODDS (%) | 2 days ago 76% | N/A |
| MACD ODDS (%) | 2 days ago 79% | N/A |
| TrendWeek ODDS (%) | 2 days ago 80% | 2 days ago 76% |
| TrendMonth ODDS (%) | 2 days ago 80% | 2 days ago 76% |
| Advances ODDS (%) | 2 days ago 81% | 2 days ago 73% |
| Declines ODDS (%) | 14 days ago 65% | 15 days ago 77% |
| BollingerBands ODDS (%) | 2 days ago 72% | 2 days ago 86% |
| Aroon ODDS (%) | 2 days ago 80% | 2 days ago 75% |
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ON and
Correlation & Price change
A.I.dvisor indicates that over the last year, ON has been closely correlated with MCHP. These tickers have moved in lockstep 75% of the time. This A.I.-generated data suggests there is a high statistical probability that if ON jumps, then MCHP could also see price increases.