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LRCX vs QCOM
Which Stock Would AI Choose? Lam Research (LRCX) vs. Qualcomm (QCOM) Stock Comparison
Key Takeaways
- Lam Research (LRCX) has delivered explosive year-to-date gains exceeding 80%, fueled by surging demand for AI-related semiconductor manufacturing equipment, though recent weeks have brought a sharp pullback from June highs.
- Qualcomm (QCOM) is executing a deliberate diversification strategy into automotive, IoT (Internet of Things), and data centers, but near-term headwinds from memory supply constraints and handset market maturity have weighed on sentiment.
- LRCX benefits directly from the AI infrastructure build-out through its etch and deposition tools, while QCOM's AI narrative is still emerging and carries longer payoff timelines.
- Qualcomm trades at a substantially lower valuation multiple than Lam Research, reflecting divergent market expectations for growth trajectories and risk profiles.
- Volatility has characterized both names in recent weeks, with LRCX experiencing a notable correction from all-time highs while QCOM has traded in a comparatively narrower range.
Introduction
Both LRCX and QCOM occupy critical positions within the semiconductor ecosystem, yet they serve fundamentally different roles. Lam Research supplies the sophisticated manufacturing equipment that chipmakers require to fabricate advanced integrated circuits, while Qualcomm designs and licenses the chips and wireless technologies that power billions of connected devices. This comparison is especially relevant for technology-sector investors evaluating two distinct paths to participate in the semiconductor industry: the capital-equipment supplier riding the AI infrastructure wave versus the diversified chip designer navigating a maturing smartphone market while pursuing new growth frontiers. Understanding how these two companies compare across momentum, valuation, and strategic positioning can help clarify their respective roles in a technology portfolio.
LRCX Overview and Recent Performance
Lam Research is one of the world's leading providers of wafer fabrication equipment, specializing in deposition, etch, and clean technologies used to manufacture semiconductors. The company's tools are indispensable for producing advanced logic, DRAM (Dynamic Random-Access Memory), NAND flash memory, and increasingly, the high-bandwidth memory (HBM) essential for AI workloads. In its fiscal year 2025, Lam Research reported revenue of approximately $18.44 billion, representing a 23.7% year-over-year increase, while net income surged 40% to $5.36 billion. The company's most recent quarterly results continued to demonstrate momentum, with revenue of $5.34 billion and non-GAAP (non-Generally Accepted Accounting Principles) earnings of $1.27 per share, both surpassing consensus estimates. CEO Tim Archer has highlighted that rapid adoption of AI workloads is driving customer investment in leading-edge foundry and memory capacity. However, after reaching an all-time high of $438.50 on June 30, 2026, LRCX shares have pulled back notably in recent weeks, trading near $313 as of mid-July — a correction that reflects profit-taking and broader semiconductor sector volatility rather than any deterioration in the company's fundamental outlook.
QCOM Overview and Recent Performance
Qualcomm is a global leader in wireless technology and semiconductor solutions, best known for its Snapdragon mobile platforms and its extensive portfolio of 5G-related intellectual property. The company operates through two primary segments: QCT (Qualcomm CDMA Technologies), which designs and sells chips for handsets, automotive applications, and IoT devices; and QTL (Qualcomm Technology Licensing), which generates high-margin revenue from patent licensing. In its most recently reported fiscal first quarter of 2026, Qualcomm posted record total company revenues of $12.25 billion, with non-GAAP earnings per share of $3.50, both exceeding analyst expectations. Crucially, the company's automotive business surpassed $1 billion in quarterly revenue for the second consecutive quarter, while IoT revenue grew 9% year-over-year. Despite these achievements, Qualcomm's Q2 FY2026 guidance came in below consensus, as management cited industry-wide memory supply constraints impacting handset production volumes. The company has also undertaken strategic moves, including the acquisition of Alphawave IP Group to accelerate its expansion into data center and AI infrastructure markets. Qualcomm's shares have traded in a comparatively range-bound manner, with the stock hovering near the $180 level, reflecting a market that remains cautious about near-term headwinds while acknowledging the company's long-term diversification progress.
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Head-to-Head Comparison
When comparing LRCX and QCOM, the most striking divergence lies in their growth profiles and how the market prices them. Lam Research is riding a direct and powerful AI capex (capital expenditure) cycle, as semiconductor manufacturers aggressively expand fabrication capacity for AI chips. This has translated into revenue growth above 20% and operating margins north of 33%. Qualcomm, by contrast, faces a more mixed growth picture: while automotive and IoT segments are expanding at double-digit rates, the core handset business — still the dominant revenue driver — is growing in the low single digits and faces cyclical headwinds from memory supply constraints.
On valuation, the contrast is equally pronounced. LRCX trades at a forward P/E (price-to-earnings) multiple above 40, reflecting high growth expectations embedded in its price, while QCOM's forward P/E sits in the mid-teens, a level that suggests the market is pricing in conservatism regarding its diversification timeline. Qualcomm offers a substantially higher dividend yield — approximately 2% versus Lam Research's 0.33% — making it more attractive for income-oriented investors. From a risk perspective, LRCX is more exposed to the cyclicality of semiconductor capital equipment spending and geopolitical dynamics around China, which represented 34% of its fiscal 2025 revenue. QCOM, meanwhile, must contend with the eventual loss of its modem business with Apple and intensifying competition from MediaTek and Samsung in mobile processors. Both companies are levered to the long-term semiconductor growth story, but LRCX currently captures more of the immediate AI momentum, while QCOM's narrative is anchored to a multi-year transformation that is still unfolding.
Tickeron AI Verdict
Based on observable trend consistency, relative momentum, and exposure to secular demand catalysts, Tickeron's AI analysis would likely express a near-term preference for Lam Research over Qualcomm in the current market environment. LRCX's direct linkage to AI infrastructure spending has driven exceptional revenue growth and earnings momentum, and while the stock has experienced a notable pullback from its June highs, the underlying demand drivers — expanding data center capacity, technology node transitions, and rising etch and deposition intensity per wafer — remain firmly intact. Qualcomm's diversification story is credible and progressing, but the near-term earnings trajectory is clouded by memory supply chain disruptions and a slower-growth handset segment. The AI assessment would likely acknowledge that LRCX carries higher valuation risk and greater sensitivity to shifts in the semiconductor equipment cycle, yet would favor its stronger trend consistency and catalyst clarity over QCOM's more gradual transformation. As always, this probabilistic evaluation reflects observable market conditions and does not constitute a definitive prediction.
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 QCOM 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 whileQCOM’s FA Score has 1 green FA rating(s).
- LRCX’s FA Score: 3 green, 2 red.
- QCOM’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 4 TA indicator(s) are bullish while QCOM’s TA Score has 3 bullish TA indicator(s).
- LRCX’s TA Score: 4 bullish, 6 bearish.
- QCOM’s TA Score: 3 bullish, 5 bearish.
Price Growth
LRCX (@Electronic Production Equipment) experienced а -2.58% price change this week, while QCOM (@Semiconductors) price change was -2.80% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -0.34%. For the same industry, the average monthly price growth was -16.52%, and the average quarterly price growth was +46.72%.
The average weekly price growth across all stocks in the @Semiconductors industry was -1.99%. For the same industry, the average monthly price growth was -15.50%, and the average quarterly price growth was +36.88%.
Reported Earning Dates
LRCX is expected to report earnings on Jul 29, 2026.
QCOM is expected to report earnings on Aug 05, 2026.
Industries' Descriptions
@Electronic Production Equipment (-0.34% 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 (-1.99% 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 | QCOM | LRCX / QCOM | |
| Capitalization | 382B | 176B | 217% |
| EBITDA | 8.07B | 14B | 58% |
| Gain YTD | 78.637 | -1.396 | -5,634% |
| P/E Ratio | 57.70 | 17.95 | 321% |
| Revenue | 21.7B | 44.5B | 49% |
| Total Cash | 1.68B | 9.8B | 17% |
| Total Debt | 3.73B | 15.3B | 24% |
LRCX | QCOM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 67 | 53 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 87 Overvalued | 40 Fair valued | |
PROFIT vs RISK RATING 1..100 | 23 | 73 | |
SMR RATING 1..100 | 17 | 27 | |
PRICE GROWTH RATING 1..100 | 36 | 54 | |
P/E GROWTH RATING 1..100 | 11 | 37 | |
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.
QCOM's Valuation (40) in the Telecommunications Equipment industry is somewhat better than the same rating for LRCX (87) in the Electronic Production Equipment industry. This means that QCOM’s stock grew somewhat faster than LRCX’s over the last 12 months.
LRCX's Profit vs Risk Rating (23) in the Electronic Production Equipment industry is somewhat better than the same rating for QCOM (73) in the Telecommunications Equipment industry. This means that LRCX’s stock grew somewhat faster than QCOM’s over the last 12 months.
LRCX's SMR Rating (17) in the Electronic Production Equipment industry is in the same range as QCOM (27) in the Telecommunications Equipment industry. This means that LRCX’s stock grew similarly to QCOM’s over the last 12 months.
LRCX's Price Growth Rating (36) in the Electronic Production Equipment industry is in the same range as QCOM (54) in the Telecommunications Equipment industry. This means that LRCX’s stock grew similarly to QCOM’s over the last 12 months.
LRCX's P/E Growth Rating (11) in the Electronic Production Equipment industry is in the same range as QCOM (37) in the Telecommunications Equipment industry. This means that LRCX’s stock grew similarly to QCOM’s over the last 12 months.
| LRCX | QCOM | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 75% | N/A |
| Stochastic ODDS (%) | 2 days ago 76% | 2 days ago 72% |
| Momentum ODDS (%) | 2 days ago 72% | 2 days ago 66% |
| MACD ODDS (%) | 2 days ago 61% | N/A |
| TrendWeek ODDS (%) | 2 days ago 62% | 2 days ago 70% |
| TrendMonth ODDS (%) | 2 days ago 68% | 2 days ago 70% |
| Advances ODDS (%) | 17 days ago 83% | 4 days ago 64% |
| Declines ODDS (%) | 6 days ago 63% | 2 days ago 74% |
| BollingerBands ODDS (%) | 2 days ago 88% | 2 days ago 71% |
| Aroon ODDS (%) | 2 days ago 82% | 2 days ago 66% |
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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% | -4.56% | ||
| AMAT - LRCX | 89% Closely correlated | -4.72% | ||
| KLAC - LRCX | 88% Closely correlated | -3.75% | ||
| NVMI - LRCX | 84% Closely correlated | -3.82% | ||
| ASML - LRCX | 84% Closely correlated | -2.55% | ||
| RMBS - LRCX | 80% Closely correlated | -6.96% | ||
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QCOM and
Correlation & Price change
A.I.dvisor indicates that over the last year, QCOM has been closely correlated with LRCX. These tickers have moved in lockstep 80% of the time. This A.I.-generated data suggests there is a high statistical probability that if QCOM jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To QCOM | 1D Price Change % | ||
|---|---|---|---|---|
| QCOM | 100% | -2.42% | ||
| LRCX - QCOM | 80% Closely correlated | -4.56% | ||
| KLAC - QCOM | 78% Closely correlated | -3.75% | ||
| AMKR - QCOM | 76% Closely correlated | -0.57% | ||
| AMAT - QCOM | 74% Closely correlated | -4.72% | ||
| KLIC - QCOM | 74% Closely correlated | -4.48% | ||
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