Advertisement
LRCX vs TSM
Which Stock Would AI Choose? Lam Research Corporation (LRCX) vs. Taiwan Semiconductor Manufacturing Company Limited (TSM) Stock Comparison
Key Takeaways
- Lam Research Corporation (LRCX) has delivered significantly stronger year-to-date returns compared to Taiwan Semiconductor Manufacturing Company Limited (TSM), driven by robust equipment demand in the semiconductor sector.
- TSM benefits from direct exposure to advanced chip manufacturing and AI-related foundry services, with recent July revenue growth exceeding 44% year-over-year.
- Both companies operate within the semiconductor ecosystem but differ in business models: LRCX focuses on wafer fabrication equipment while TSM provides contract manufacturing services.
- Recent market activity shows LRCX posting record quarterly results with elevated gross margins, contributing to positive sentiment shifts.
- Geopolitical and supply chain considerations remain relevant risk factors for TSM due to its Taiwan-based operations, whereas LRCX faces cyclical demand patterns typical of equipment providers.
- Relative performance highlights trade-offs between equipment suppliers experiencing order momentum and foundries capitalizing on sustained AI chip demand.
Introduction
This comparison examines Lam Research Corporation (LRCX) and Taiwan Semiconductor Manufacturing Company Limited (TSM) to provide traders and investors with objective insights into their relative positioning. Both stocks operate in the semiconductor industry, which has experienced elevated activity amid advancements in artificial intelligence and computing technologies. The analysis focuses on recent performance trends, business fundamentals, and market dynamics over recent weeks. Professional investors seeking sector exposure and active traders monitoring momentum may find this side-by-side evaluation relevant for assessing portfolio allocation decisions within technology equities.
LRCX Overview and Recent Performance
Lam Research Corporation (LRCX) designs and manufactures equipment used in semiconductor fabrication processes. In recent market activity, the stock has shown notable strength following the company’s fiscal fourth-quarter results, which included revenue of $6.72 billion and adjusted earnings per share that exceeded analyst expectations. Gross margins reached approximately 52%, marking multi-year highs. Year-to-date returns have substantially outpaced broader market benchmarks. Recent developments, including a workforce development collaboration announced in mid-August 2026, have contributed to positive sentiment. Price behavior reflects broader enthusiasm for semiconductor capital equipment amid ongoing industry expansion.
TSM Overview and Recent Performance
Taiwan Semiconductor Manufacturing Company Limited (TSM) operates as the world’s largest dedicated semiconductor foundry, producing chips for various technology companies. Recent performance has been supported by strong demand for advanced process nodes, with July revenue rising more than 44% year-over-year. The company announced a joint venture with Sony for image sensors and received upward revisions to analyst price targets. Year-to-date gains have been solid though more moderate than certain equipment peers. Market sentiment remains constructive due to AI-related production ramps, while capital expenditure plans underscore long-term capacity investments. Stock movements have tracked broader semiconductor sector trends with relatively lower volatility compared to equipment suppliers.
Trending AI Robots
Tickeron’s Trending AI Robots page showcases a curated selection of AI trading bots designed for various market conditions. Tickeron offers hundreds of AI Trading Bots that trade thousands of different tickers, yet only the strongest performers suited to prevailing environments are featured in this trending section. The platform highlights approximately 25 top bots selected from a total of 351 available options, spanning multiple timeframes such as 5-minute, 15-minute, and 60-minute intervals, along with varying volatility tolerances and analytical approaches. These bots employ distinct trading styles, strategies, and ticker sets, enabling users to review performance statistics and risk parameters. Explore the full range at Trending AI Robots for additional details on current selections.
Head-to-Head Comparison
Lam Research Corporation (LRCX) and Taiwan Semiconductor Manufacturing Company Limited (TSM) represent complementary yet distinct segments of the semiconductor value chain. LRCX supplies critical fabrication equipment, exposing it to cyclical capital spending by chipmakers, while TSM provides foundry services with more direct visibility into end-customer chip demand, particularly in AI applications. Recent momentum favors LRCX on a relative return basis, supported by strong quarterly margins and order trends. In contrast, TSM offers greater scale and recurring revenue characteristics but carries elevated geopolitical considerations tied to its primary manufacturing location. Both maintain significant exposure to the semiconductor sector, though LRCX may exhibit higher sensitivity to equipment order cycles and TSM to foundry utilization rates. Market sentiment for each has remained constructive amid industry tailwinds, with differing risk profiles reflecting their operational models.
Tickeron AI Verdict
Based on observable factors including recent trend consistency, earnings momentum, and relative positioning within the semiconductor equipment segment, Tickeron’s AI would currently assign a higher probabilistic preference to Lam Research Corporation (LRCX) over Taiwan Semiconductor Manufacturing Company Limited (TSM). Stronger year-to-date performance and post-earnings stability provide a measurable edge in current market conditions, though both equities remain subject to sector-wide influences and broader economic variables.
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 TSM is a Buy.
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 whileTSM’s FA Score has 3 green FA rating(s).
- LRCX’s FA Score: 3 green, 2 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 6 bullish TA indicator(s).
- LRCX’s TA Score: 5 bullish, 5 bearish.
- TSM’s TA Score: 6 bullish, 4 bearish.
Price Growth
LRCX (@Electronic Production Equipment) experienced а +10.22% price change this week, while TSM (@Semiconductors) price change was +2.94% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +6.58%. For the same industry, the average monthly price growth was +0.69%, and the average quarterly price growth was +45.70%.
The average weekly price growth across all stocks in the @Semiconductors industry was +1.82%. For the same industry, the average monthly price growth was -4.27%, and the average quarterly price growth was +45.24%.
Reported Earning Dates
LRCX is expected to report earnings on Oct 21, 2026.
TSM is expected to report earnings on Oct 15, 2026.
Industries' Descriptions
@Electronic Production Equipment (+6.58% 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 (+1.82% 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 | 422B | 1.96T | 22% |
| EBITDA | 8.07B | 2.99T | 0% |
| Gain YTD | 97.249 | 43.116 | 226% |
| P/E Ratio | 58.51 | 32.47 | 180% |
| Revenue | 21.7B | 4.1T | 1% |
| Total Cash | 1.68B | N/A | - |
| Total Debt | 3.73B | N/A | - |
LRCX | TSM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 67 | 15 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 80 Overvalued | 59 Fair valued | |
PROFIT vs RISK RATING 1..100 | 31 | 9 | |
SMR RATING 1..100 | 17 | 28 | |
PRICE GROWTH RATING 1..100 | 37 | 43 | |
P/E GROWTH RATING 1..100 | 7 | 25 | |
SEASONALITY SCORE 1..100 | 75 | 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.
TSM's Valuation (59) in the Semiconductors industry is in the same range as LRCX (80) in the Electronic Production Equipment industry. This means that TSM’s stock grew similarly to LRCX’s over the last 12 months.
TSM's Profit vs Risk Rating (9) in the Semiconductors industry is in the same range as LRCX (31) in the Electronic Production Equipment industry. This means that TSM’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's SMR Rating (17) in the Electronic Production Equipment industry is in the same range as TSM (28) 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 (37) in the Electronic Production Equipment industry is in the same range as TSM (43) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TSM’s over the last 12 months.
LRCX's P/E Growth Rating (7) in the Electronic Production Equipment industry is in the same range as TSM (25) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TSM’s over the last 12 months.
| LRCX | TSM | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 89% | 1 day ago 65% |
| Stochastic ODDS (%) | 1 day ago 62% | 1 day ago 63% |
| Momentum ODDS (%) | 1 day ago 79% | 1 day ago 67% |
| MACD ODDS (%) | 1 day ago 83% | 1 day ago 73% |
| TrendWeek ODDS (%) | 1 day ago 82% | 1 day ago 74% |
| TrendMonth ODDS (%) | 1 day ago 68% | 1 day ago 77% |
| Advances ODDS (%) | 1 day ago 84% | 1 day ago 73% |
| Declines ODDS (%) | 9 days ago 64% | 17 days ago 61% |
| BollingerBands ODDS (%) | 1 day ago 88% | 1 day ago 90% |
| Aroon ODDS (%) | 1 day ago 68% | 1 day ago 62% |
Advertisement
TSM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSM has been closely correlated with ASML. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if TSM jumps, then ASML could also see price increases.
| Ticker / NAME | Correlation To TSM | 1D Price Change % | ||
|---|---|---|---|---|
| TSM | 100% | +0.31% | ||
| ASML - TSM | 74% Closely correlated | +2.09% | ||
| LRCX - TSM | 73% Closely correlated | +3.34% | ||
| KLAC - TSM | 71% Closely correlated | +0.54% | ||
| AMAT - TSM | 71% Closely correlated | -2.48% | ||
| ASX - TSM | 68% Closely correlated | +0.92% | ||
More | ||||