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LRCX vs TSEM
Which Stock Would AI Choose? Lam Research Corporation (LRCX) vs. Tower Semiconductor Ltd. (TSEM) Stock Comparison
Key Takeaways
- LRCX boasts a market cap of $367.73B with 24% stock rise in recent weeks, driven by Q3 FY2026 earnings beat and AI chip demand.
- TSEM shows 486% 1-year return but trades at elevated trailing P/E of 109x amid steady foundry growth.
- Both benefit from semiconductor surge, but LRCX leads in profitability (31% margin) and ROE (67%) versus TSEM's 14% margin.
- LRCX revenue grew 24% YoY quarterly; TSEM at 14%, reflecting equipment vs. foundry dynamics.
- AI-driven momentum favors LRCX with analyst upgrades; TSEM offers niche exposure but higher valuation risk.
Introduction
In the booming semiconductor sector, LRCX and TSEM represent distinct plays: equipment manufacturing versus specialty foundry services. This stock comparison analyzes their recent market positioning, performance metrics, and growth drivers amid AI and advanced chip demand. Traders seeking cyclical momentum may eye LRCX, while long-term investors could value TSEM's diversified analog/mixed-signal focus. Relative performance highlights trade-offs in scale, margins, and valuation for informed decision-making in today's volatile environment.
LRCX Overview and Recent Performance
Lam Research Corporation (LRCX) designs, manufactures, and services wafer fabrication equipment for etch, deposition, and cleaning processes critical to integrated circuits. Serving major foundries like TSMC and memory leaders such as Samsung and Micron, it holds top etch market share and strong deposition positioning.
Recent market activity saw LRCX shares climb about 24% over the past 30 days, propelled by Q3 FY2026 results: $5.84B revenue (up 24% YoY, beating estimates) and adjusted EPS of $1.47 (7.9% above consensus). AI-related etch and deposition tool demand, plus Q4 guidance of $6.6B revenue (10% over consensus), fueled gains. Analyst upgrades, including JPMorgan's $315 target, reflect reset wafer fabrication equipment (WFE) expectations to $140B for 2026 amid HBM (high-bandwidth memory) recovery. YTD return stands at 72%, with trailing P/E at 55.6x.
TSEM Overview and Recent Performance
Tower Semiconductor Ltd. (TSEM) operates as an independent foundry offering customizable platforms like SiGe, SiPho (silicon photonics), RF CMOS, and power management for analog/mixed-signal ICs. It targets automotive, industrial, aerospace, medical, and consumer segments across the US, Asia, and Europe.
In recent weeks, TSEM shares fluctuated near 52-week highs around $232, with YTD gains of 75% and 1-year return of 486%. Quarterly revenue growth hit 14% YoY on $1.57B TTM, supported by demand in specialty processes. Trading at trailing P/E of 109x and forward P/E of 74x, sentiment reflects robust sector tailwinds but higher multiples versus peers. Steady performance underscores resilience in niche markets, though less earnings visibility than equipment giants amid broader chip recovery.
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Head-to-Head Comparison
LRCX and TSEM operate complementarily in semiconductors: LRCX supplies front-end equipment for logic/memory fabs, while TSEM fabs specialty analog ICs. Growth drivers diverge—LRCX leverages AI WFE boom (26% revenue growth TTM), TSEM diversified end-markets (9% TTM growth).
Recent momentum favors LRCX (24% 30-day gain post-earnings) over TSEM's steadier climb. Risk factors: LRCX faces cyclical WFE swings (beta 1.82), TSEM geopolitical exposure (Israel-based, beta 0.85) but lower capex intensity. Sector ties strong—both ride AI—but LRCX offers superior margins (31% vs. 14%), ROE (67% vs. 8%). Sentiment tilts to LRCX on scale ($368B vs. $24B cap), though TSEM's lower P/B (8x vs. 35x) signals value in niches.
Tickeron AI Verdict
Tickeron's AI leans toward LRCX in current positioning, citing trend consistency from earnings beats, AI catalysts like HBM tools, and relative stability via 24% YoY growth versus TSEM's solid but slower 14%. Higher margins and analyst momentum bolster probability of outperformance, though TSEM suits niche diversification.
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 TSEM 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 whileTSEM’s FA Score has 2 green FA rating(s).
- LRCX’s FA Score: 4 green, 1 red.
- TSEM’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 TSEM’s TA Score has 3 bullish TA indicator(s).
- LRCX’s TA Score: 6 bullish, 4 bearish.
- TSEM’s TA Score: 3 bullish, 4 bearish.
Price Growth
LRCX (@Electronic Production Equipment) experienced а +14.54% price change this week, while TSEM (@Semiconductors) price change was -3.21% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +11.38%. For the same industry, the average monthly price growth was +39.29%, and the average quarterly price growth was +131.95%.
The average weekly price growth across all stocks in the @Semiconductors industry was +8.68%. For the same industry, the average monthly price growth was +46.13%, and the average quarterly price growth was +68.60%.
Reported Earning Dates
LRCX is expected to report earnings on Aug 05, 2026.
TSEM is expected to report earnings on May 13, 2026.
Industries' Descriptions
@Electronic Production Equipment (+11.38% 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 (+8.68% 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 | TSEM | LRCX / TSEM | |
| Capitalization | 368B | 23.9B | 1,540% |
| EBITDA | 8.07B | 507M | 1,592% |
| Gain YTD | 71.984 | 79.714 | 90% |
| P/E Ratio | 55.59 | 108.77 | 51% |
| Revenue | 21.7B | 1.51B | 1,434% |
| Total Cash | 4.75B | 1.22B | 388% |
| Total Debt | 3.73B | 164M | 2,277% |
LRCX | TSEM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 83 Overvalued | 85 Overvalued | |
PROFIT vs RISK RATING 1..100 | 4 | 4 | |
SMR RATING 1..100 | 17 | 78 | |
PRICE GROWTH RATING 1..100 | 4 | 35 | |
P/E GROWTH RATING 1..100 | 7 | 2 | |
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.
LRCX's Valuation (83) in the Electronic Production Equipment industry is in the same range as TSEM (85) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TSEM’s over the last 12 months.
LRCX's Profit vs Risk Rating (4) in the Electronic Production Equipment industry is in the same range as TSEM (4) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TSEM’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 TSEM (78) in the Semiconductors industry. This means that LRCX’s stock grew somewhat faster than TSEM’s over the last 12 months.
LRCX's Price Growth Rating (4) in the Electronic Production Equipment industry is in the same range as TSEM (35) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TSEM’s over the last 12 months.
TSEM's P/E Growth Rating (2) in the Semiconductors industry is in the same range as LRCX (7) in the Electronic Production Equipment industry. This means that TSEM’s stock grew similarly to LRCX’s over the last 12 months.
| LRCX | TSEM | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 60% | 4 days ago 55% |
| Stochastic ODDS (%) | 4 days ago 69% | 4 days ago 58% |
| Momentum ODDS (%) | 4 days ago 75% | 4 days ago 75% |
| MACD ODDS (%) | 4 days ago 77% | 4 days ago 55% |
| TrendWeek ODDS (%) | 4 days ago 80% | 4 days ago 59% |
| TrendMonth ODDS (%) | 4 days ago 80% | 4 days ago 76% |
| Advances ODDS (%) | 6 days ago 81% | 12 days ago 69% |
| Declines ODDS (%) | 13 days ago 65% | 5 days ago 60% |
| BollingerBands ODDS (%) | 4 days ago 77% | N/A |
| Aroon ODDS (%) | 4 days ago 80% | 4 days ago 76% |
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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% | +2.63% | ||
| AMAT - LRCX | 87% Closely correlated | +6.04% | ||
| KLAC - LRCX | 85% Closely correlated | +6.01% | ||
| ASML - LRCX | 80% Closely correlated | +4.97% | ||
| RMBS - LRCX | 80% Closely correlated | +2.09% | ||
| ADI - LRCX | 79% Closely correlated | +1.96% | ||
More | ||||
TSEM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSEM has been loosely correlated with AMKR. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if TSEM jumps, then AMKR could also see price increases.
| Ticker / NAME | Correlation To TSEM | 1D Price Change % | ||
|---|---|---|---|---|
| TSEM | 100% | +0.49% | ||
| AMKR - TSEM | 61% Loosely correlated | +6.01% | ||
| AMBA - TSEM | 60% Loosely correlated | +2.73% | ||
| KLIC - TSEM | 60% Loosely correlated | +4.60% | ||
| KLAC - TSEM | 60% Loosely correlated | +6.01% | ||
| LRCX - TSEM | 60% Loosely correlated | +2.63% | ||
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