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LRCX vs TER
Which Stock Would AI Choose? Lam Research (LRCX) vs. Teradyne (TER) Stock Comparison
Key Takeaways
- Different roles in the same ecosystem: LRCX makes wafer fabrication equipment used to build chips, while TER makes automated test equipment and robotics used to verify them.
- Both are leveraged to AI: Lam Research and Teradyne have each cited artificial-intelligence demand as a primary driver of recent record revenue.
- Scale gap is wide: Lam Research's market value is several times larger than Teradyne's, reflecting its bigger revenue base and installed equipment footprint.
- Momentum is strong in both: Both stocks have posted sharp gains in recent months but have also shown volatility tied to shifting sentiment on AI capital spending.
- Risk profiles differ: LRCX carries meaningful China exposure, while TER carries a higher valuation multiple relative to earnings.
Introduction
Lam Research (LRCX) and Teradyne (TER) occupy complementary positions in the semiconductor supply chain. Lam Research supplies the deposition and etch equipment used to fabricate chips, while Teradyne supplies the automated test systems that confirm those chips work and the robotics that support manufacturing and warehouse operations. For traders and investors tracking the artificial-intelligence build-out, this stock comparison matters because both companies are direct beneficiaries of rising semiconductor capital spending, yet they differ in scale, valuation, and risk. Understanding their relative performance and market positioning can help readers evaluate which profile fits their own objectives.
LRCX Overview and Recent Performance
Lam Research (LRCX) is a global leader in wafer fabrication equipment (WFE), the machinery used to deposit and etch the thin films that form integrated circuits. The company has benefited from rising "etch and deposition intensity" as chipmakers adopt more advanced architectures for AI accelerators, high-bandwidth memory (HBM), and 3D NAND flash. In recent quarters, management raised its calendar-2026 WFE industry outlook to roughly $140 billion, citing stronger customer spending.
Recent market activity has been marked by strong gains followed by sharp pullbacks. Lam Research shares rose substantially over the past year, supported by record revenue and expanding operating margins, before pulling back alongside other chip-equipment names as investors weighed the sustainability of AI spending. In recent weeks, the stock's relative performance has reflected this tug-of-war between durable demand drivers and concerns about valuation and China exposure, which remains a notable share of revenue.
TER Overview and Recent Performance
Teradyne (TER) designs and manufactures automated test equipment for semiconductors and electronics, along with collaborative and mobile robotics used in manufacturing and warehousing. The company has framed its strategy as a "wafer-to-AI data center" play, with a large and growing share of revenue tied to AI-related demand across compute, memory, networking, and storage. Recent quarters produced record revenue, with management indicating that more than 60% of sales in the latest periods came from AI-driven applications.
Teradyne's stock has delivered strong gains over the past year, and its relative performance has been among the more notable in the semiconductor test segment. Recent weeks have brought elevated volatility, with short-term momentum cooling even as longer-term returns remain substantial. Growth has been broad-based across its semiconductor test, product test, and robotics groups, though its richer valuation multiple leaves comparatively less room for error if demand expectations soften.
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Head-to-Head Comparison
The two companies serve different stages of chip production, which shapes their growth drivers and risk profiles. Lam Research (LRCX) is concentrated in fabrication, where demand is driven by capacity additions and technology transitions in memory and leading-edge logic. Teradyne (TER) is more diversified into test and robotics, giving it exposure to a wider set of end markets but also dependence on a smaller revenue base.
On valuation, Teradyne trades at a higher price-to-earnings (P/E) multiple, reflecting the market's enthusiasm for its AI-driven growth, while Lam Research carries a larger absolute valuation and significant China exposure, which introduces geopolitical and export-control considerations. In terms of momentum, both have posted sharp gains, but their recent price behavior has diverged at times as sentiment toward AI capital spending shifts. Investors weighing these names are effectively choosing between a large, established fabrication-equipment franchise and a smaller, faster-growing test-and-automation business with a richer multiple.
Tickeron AI Verdict
Based on observable factors such as trend consistency, stability, catalysts, and relative positioning, Tickeron's AI would likely assess the two names through different lenses. Teradyne (TER) has demonstrated stronger recent revenue growth and broad AI exposure, which may favor momentum-oriented signals, though its elevated valuation adds risk. Lam Research (LRCX) offers a larger, more established franchise with record profitability and a raised industry outlook, which may appeal to trend-consistency and stability metrics. The balance of evidence suggests the AI would lean toward the name showing the more consistent combination of earnings momentum, durable demand catalysts, and manageable valuation at any given moment—currently a close contest that emphasizes monitoring both rather than treating either as a definitive preference.
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 StrongBuy and TER is a StrongBuy.
LRCX's RSI Indicator is remaining in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +5.78% 3-day Advance, the price is estimated to grow further. Considering data from situations where LRCX advanced for three days, in 269 of 321 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
LRCX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 271 of 334 cases where LRCX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 81%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LRCX as a result. In 55 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 67%.
The Moving Average Convergence Divergence Histogram (MACD) for LRCX turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 57 similar instances when the indicator turned negative. In 37 of the 57 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
LRCX moved below its 50-day moving average on October 12, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for LRCX crossed bearishly below the 50-day moving average on October 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 85%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LRCX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 65%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 18 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 20 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 48 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating steady price growth. LRCX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: LRCX's P/B Ratio (23.090) is very high in comparison to the industry average of (6.365). P/E Ratio (39.741) is within average values for comparable stocks, (86.150). LRCX's Projected Growth (PEG Ratio) (1.463) is slightly higher than the industry average of (0.801). Dividend Yield (0.006) settles around the average of (0.009) among similar stocks. P/S Ratio (14.620) is also within normal values, averaging (27.897).
TER's Stochastic Oscillator is staying in oversold zone for 9 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +2.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where TER advanced for three days, in 254 of 315 cases, the price rose further within the following month. The odds of a continued upward trend are 81%.
TER may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 236 of 303 cases where TER Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TER as a result. In 66 of 89 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 74%.
The Moving Average Convergence Divergence Histogram (MACD) for TER turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 34 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 69%.
TER moved below its 50-day moving average on October 13, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for TER crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 64%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TER declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 28 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 42 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 56 (best 1 - 100 worst), indicating steady price growth. TER’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 62 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 78 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (14.048) is normal, around the industry mean (6.365). P/E Ratio (42.193) is within average values for comparable stocks, (86.150). Projected Growth (PEG Ratio) (0.734) is also within normal values, averaging (0.801). Dividend Yield (0.002) settles around the average of (0.009) among similar stocks. P/S Ratio (12.077) is also within normal values, averaging (27.897).
LRCX | TER | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 56 | 73 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 86 Overvalued | 78 Overvalued | |
PROFIT vs RISK RATING 1..100 | 48 | 42 | |
SMR RATING 1..100 | 18 | 28 | |
PRICE GROWTH RATING 1..100 | 62 | 56 | |
P/E GROWTH RATING 1..100 | 20 | 62 | |
SEASONALITY SCORE 1..100 | 85 | 75 |
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.
TER's Valuation (78) in the Electronic Production Equipment industry is in the same range as LRCX (86). This means that TER’s stock grew similarly to LRCX’s over the last 12 months.
TER's Profit vs Risk Rating (42) in the Electronic Production Equipment industry is in the same range as LRCX (48). This means that TER’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's SMR Rating (18) in the Electronic Production Equipment industry is in the same range as TER (28). This means that LRCX’s stock grew similarly to TER’s over the last 12 months.
TER's Price Growth Rating (56) in the Electronic Production Equipment industry is in the same range as LRCX (62). This means that TER’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's P/E Growth Rating (20) in the Electronic Production Equipment industry is somewhat better than the same rating for TER (62). This means that LRCX’s stock grew somewhat faster than TER’s over the last 12 months.
| LRCX | TER | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 90% | 1 day ago 88% |
| Stochastic ODDS (%) | 1 day ago 90% | 1 day ago 90% |
| Momentum ODDS (%) | 1 day ago 67% | 1 day ago 74% |
| MACD ODDS (%) | 1 day ago 65% | 1 day ago 69% |
| TrendWeek ODDS (%) | 1 day ago 64% | 1 day ago 69% |
| TrendMonth ODDS (%) | 1 day ago 71% | 1 day ago 72% |
| Advances ODDS (%) | 22 days ago 84% | 3 days ago 81% |
| Declines ODDS (%) | 1 day ago 65% | 8 days ago 66% |
| BollingerBands ODDS (%) | 1 day ago 90% | 1 day ago 81% |
| Aroon ODDS (%) | 1 day ago 81% | 1 day ago 78% |
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 overvalued. 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 2 FA rating(s) are green while TER’s FA Score has 1 green FA rating(s).
- LRCX’s FA Score: 2 green, 3 red.
- TER’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 5 TA indicator(s) are bullish while TER’s TA Score has 5 bullish TA indicator(s).
- LRCX’s TA Score: 5 bullish, 5 bearish.
- TER’s TA Score: 5 bullish, 5 bearish.
Price Growth
LRCX (@Electronic Production Equipment) experienced а -12.82% price change this week, while TER (@Electronic Production Equipment) price change was -4.97% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -4.19%. For the same industry, the average monthly price growth was -22.43%, and the average quarterly price growth was -32.54%.
Reported Earning Dates
LRCX is expected to report earnings on Jan 27, 2027.
TER is expected to report earnings on Oct 27, 2026.
Industries' Descriptions
@Electronic Production Equipment (-4.19% 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.
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