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LRCX vs TSM
Which Stock Would AI Choose? Lam Research Corporation (LRCX) vs. Taiwan Semiconductor Manufacturing Company (TSM) Stock Comparison
Key Takeaways
- LRCX has delivered stronger year-to-date performance at approximately 47%, outpacing TSM's 31% gain, driven by semiconductor equipment demand.
- Both stocks benefit from AI-driven chip demand, with LRCX reporting Q1 2026 revenue of $5.84 billion (up 24% year-over-year) and TSM achieving record Q1 profits up 58%.
- TSM trades at a lower P/E ratio (price-to-earnings) of 33.6 compared to LRCX's 47.4, reflecting its larger scale but higher geopolitical risks.
- Recent market activity shows volatility in both amid chip sector pressures, but analyst targets suggest upside for LRCX (average $306) and TSM ($463).
- Tickeron's AI tools highlight momentum edges for equipment plays like LRCX in current conditions.
Introduction
Lam Research Corporation (LRCX) and Taiwan Semiconductor Manufacturing Company (TSM) are pivotal players in the semiconductor industry, with LRCX providing wafer fabrication equipment and TSM leading as a pure-play foundry. This comparison is relevant for traders navigating AI-fueled growth and sector volatility, as well as investors assessing relative performance in equipment versus manufacturing. Recent market activity underscores their interconnected roles in advanced chip production, offering insights into momentum, valuation, and risk trade-offs amid broader economic shifts.
LRCX Overview and Recent Performance
Lam Research Corporation (LRCX) designs and manufactures semiconductor processing equipment essential for etching and deposition in chip fabrication. In recent market activity, the stock has shown resilience despite sector-wide pressures, trading around $251 with a market cap of $314 billion. Year-to-date gains exceed 47%, reflecting strong demand for AI-related tools. The Q1 2026 quarter delivered record revenue of $5.84 billion, surpassing estimates by 1.7% and growing 24% year-over-year, bolstered by inventory improvements and AI catalysts. Sentiment has been influenced by geopolitical tensions and chip sell-offs, leading to recent pullbacks, yet analysts maintain overweight ratings with targets up to $315, signaling confidence in long-term positioning.
TSM Overview and Recent Performance
Taiwan Semiconductor Manufacturing Company (TSM), or TSMC, is the world's largest dedicated semiconductor foundry, producing chips for major tech firms. Recently, shares hover near $392 with a $2 trillion market cap, posting 31% year-to-date returns amid AI demand surges. Q1 2026 results highlighted record profits up 58%, with revenue of approximately $36 billion (NT$1,134 billion), up 35% year-over-year, driven by high-performance computing segments comprising over 60% of sales. Performance reflects robust AI chip orders, though post-earnings dips occurred due to competition concerns and spending outlooks. Analyst sentiment remains positive, with overweight ratings and targets averaging $463, underscoring its foundational role despite Taiwan-related risks.
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Head-to-Head Comparison
LRCX focuses on equipment sales to foundries, offering cyclical growth tied to capacity expansions, while TSM's foundry model provides steadier revenue from manufacturing services. Growth drivers align on AI infrastructure, but LRCX benefits from upstream demand with higher recent momentum (YTD outperformance), whereas TSM leverages scale for dominant market share. Risk factors include LRCX's exposure to capex cycles versus TSM's geopolitical vulnerabilities from Taiwan tensions. Sector exposure is pure semiconductors for both, but sentiment favors LRCX for lower relative risks and valuation after strong earnings beats.
Tickeron AI Verdict
Tickeron's AI currently leans toward LRCX due to superior trend consistency, recent earnings momentum, and relative stability in equipment demand amid AI expansions. Factors like 47% YTD gains and analyst upgrades position it favorably versus TSM, though TSM's scale offers probabilistic long-term advantages. This assessment reflects observable market positioning rather than guarantees.
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 Hold and TSM 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 whileTSM’s FA Score has 3 green FA rating(s).
- LRCX’s FA Score: 4 green, 1 red.
- TSM’s FA Score: 3 green, 2 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 TSM’s TA Score has 4 bullish TA indicator(s).
- LRCX’s TA Score: 5 bullish, 4 bearish.
- TSM’s TA Score: 4 bullish, 5 bearish.
Price Growth
LRCX (@Electronic Production Equipment) experienced а +4.41% price change this week, while TSM (@Semiconductors) price change was +0.86% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -0.13%. For the same industry, the average monthly price growth was +21.65%, and the average quarterly price growth was +145.15%.
The average weekly price growth across all stocks in the @Semiconductors industry was +4.89%. For the same industry, the average monthly price growth was +39.97%, and the average quarterly price growth was +81.80%.
Reported Earning Dates
LRCX is expected to report earnings on Aug 05, 2026.
TSM is expected to report earnings on Jul 16, 2026.
Industries' Descriptions
@Electronic Production Equipment (-0.13% 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 (+4.89% 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 | TSM | LRCX / TSM | |
| Capitalization | 374B | 1.87T | 20% |
| EBITDA | 8.07B | 2.74T | 0% |
| Gain YTD | 74.967 | 38.227 | 196% |
| P/E Ratio | 56.55 | 35.79 | 158% |
| Revenue | 21.7B | 3.81T | 1% |
| Total Cash | 4.75B | N/A | - |
| Total Debt | 3.73B | N/A | - |
LRCX | TSM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 13 | 76 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 83 Overvalued | 63 Fair valued | |
PROFIT vs RISK RATING 1..100 | 4 | 7 | |
SMR RATING 1..100 | 17 | 27 | |
PRICE GROWTH RATING 1..100 | 3 | 40 | |
P/E GROWTH RATING 1..100 | 8 | 18 | |
SEASONALITY SCORE 1..100 | 90 | 90 |
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.
TSM's Valuation (63) in the Semiconductors industry is in the same range as LRCX (83) in the Electronic Production Equipment industry. This means that TSM’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 in the same range as TSM (7) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TSM’s over the last 12 months.
LRCX's SMR Rating (17) in the Electronic Production Equipment industry is in the same range as TSM (27) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TSM’s over the last 12 months.
LRCX's Price Growth Rating (3) in the Electronic Production Equipment industry is somewhat better than the same rating for TSM (40) in the Semiconductors industry. This means that LRCX’s stock grew somewhat faster than TSM’s over the last 12 months.
LRCX's P/E Growth Rating (8) in the Electronic Production Equipment industry is in the same range as TSM (18) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TSM’s over the last 12 months.
| LRCX | TSM | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 58% | 2 days ago 64% |
| Stochastic ODDS (%) | 2 days ago 61% | 2 days ago 67% |
| Momentum ODDS (%) | 2 days ago 68% | 2 days ago 77% |
| MACD ODDS (%) | 2 days ago 80% | 2 days ago 75% |
| TrendWeek ODDS (%) | 2 days ago 80% | 2 days ago 73% |
| TrendMonth ODDS (%) | 2 days ago 80% | 2 days ago 76% |
| Advances ODDS (%) | 2 days ago 82% | 2 days ago 72% |
| Declines ODDS (%) | 17 days ago 65% | 4 days ago 62% |
| BollingerBands ODDS (%) | 2 days ago 66% | 2 days ago 62% |
| Aroon ODDS (%) | 2 days ago 80% | 2 days ago 75% |
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