Advertisement
LRCX vs TXN
Which Stock Would AI Choose? Lam Research (LRCX) vs. Texas Instruments (TXN) Stock Comparison
Key Takeaways
- Lam Research (LRCX) is a leading wafer fabrication equipment (WFE) supplier benefiting from surging AI-driven capital expenditures, while Texas Instruments (TXN) is a diversified analog and embedded chipmaker riding a broad cyclical recovery across industrial and data center markets.
- LRCX has delivered explosive relative performance with a 52-week return exceeding 200%, compared to approximately 32% for TXN, reflecting their different positions in the semiconductor value chain.
- TXN offers a more defensive profile with a dividend yield near 1.9%, a lower beta of 1.31, and strong free cash flow generation, while LRCX carries higher growth but also higher volatility with a beta of 1.80.
- Both companies face distinct risk factors: LRCX contends with geopolitical exposure to China (roughly 35% of revenue) and export control uncertainties, while TXN navigates automotive tariff headwinds and heavy capital spending on 300mm manufacturing capacity.
- From a valuation standpoint, TXN trades at a lower forward P/E (price-to-earnings) ratio, offering a potentially more balanced risk-reward profile, while LRCX commands a premium that reflects its stronger near-term revenue growth trajectory.
Introduction
Semiconductor stocks remain at the center of investor attention as artificial intelligence, cloud computing, and industrial automation continue to reshape global technology demand. Within this vast ecosystem, LRCX (Lam Research) and TXN (Texas Instruments) occupy markedly different roles. Lam Research supplies the sophisticated wafer fabrication equipment that enables chipmakers to manufacture advanced semiconductors, while Texas Instruments designs and produces analog and embedded processing chips that power everything from vehicles to factory equipment and data center infrastructure. Comparing these two industry leaders offers a clear lens into how investors can weigh high-growth, capex-driven opportunity against steadier, cash-flow-oriented stability in the semiconductor space.
LRCX Overview and Recent Performance
Lam Research is a premier global supplier of wafer fabrication equipment, specializing in deposition, etch, and cleaning technologies essential to semiconductor manufacturing. Its machines are critical for producing advanced logic, DRAM (dynamic random-access memory), and NAND flash memory chips used in AI servers, smartphones, and high-performance computing. In recent weeks, LRCX shares have pulled back from elevated levels, trading near $313 after touching a 52-week high above $438. This retracement reflects broader market rotation and profit-taking following a remarkable rally that saw the stock gain more than 200% over the trailing 12 months.
Fundamentally, Lam Research continues to deliver robust results. In its most recent fiscal quarter, the company reported revenue of approximately $5.17 billion, representing year-over-year growth of 34%, with non-GAAP (non-Generally Accepted Accounting Principles) gross margins reaching 50.3%. The company has raised its outlook for WFE (wafer fabrication equipment) spending, now projecting approximately $140 billion for the calendar year, driven by strong demand across foundry, logic, and memory segments. Customer support revenues have crossed the $2 billion quarterly mark for the first time, underscoring the value of Lam's massive installed base of over 75,000 systems worldwide. However, China exposure remains a key variable, with that region contributing roughly 35% of total revenue and facing ongoing U.S. export regulation scrutiny.
TXN Overview and Recent Performance
Texas Instruments is one of the world's largest producers of analog chips and embedded processors, components that perform essential functions like power management, signal conversion, and motor control across virtually every electronic device. With a product portfolio spanning tens of thousands of parts and a growing network of 300mm (300-millimeter) wafer fabrication facilities, TXN is a cornerstone of the industrial and automotive semiconductor supply chain. In recent market activity, TXN shares have traded near the $284 level, well above their 52-week low of roughly $153 but still off their 52-week high of $334.
The company's most recent quarterly results showed revenue of $4.45 billion, a 16% year-over-year increase, with earnings per share of $1.41. Industrial end-market recovery has been a bright spot, with broad-based sequential and year-over-year gains across multiple sectors. Meanwhile, the data center business has emerged as a significant growth catalyst, reaching an annual run rate of approximately $1.2 billion and growing approximately 90% year-over-year in the most recent quarter, as AI-driven infrastructure buildouts fuel demand for TXN's power management and connectivity solutions. Gross margins remain robust near 58%, supported by the company's strategic investment in 300mm manufacturing capacity. That said, the automotive segment has shown signs of softening, partly linked to tariff-related disruptions, and heavy capital expenditures of roughly $4.9 billion over the trailing 12 months have compressed free cash flow to about $1.8 billion for the same period.
Trending AI Robots
For traders seeking a data-driven edge in navigating the semiconductor landscape and beyond, Tickeron's Trending AI Robots page offers a curated selection of AI-powered trading bots optimized for current market conditions. Tickeron hosts hundreds of AI trading bots covering thousands of tickers, each employing distinct trading styles, time horizons, and risk parameters. The bots featured in the Trending section represent those whose strategies have demonstrated the strongest alignment with prevailing market dynamics, with some bots achieving win rates exceeding 70% and generating annualized returns well into double-digit territory. These AI-driven systems analyze technical patterns, fundamental signals, and market sentiment to execute trades autonomously. Whether a trader focuses on momentum, swing trading, or longer-term positioning, exploring the Trending AI Robots can provide actionable insights into which tickers and strategies are performing best right now.
Head-to-Head Comparison
Business Model: The most fundamental distinction is that LRCX makes the tools that build chips, while TXN builds the chips themselves. Lam Research is a cyclical equipment supplier whose revenue depends on semiconductor manufacturers' capital expenditure budgets. Texas Instruments, by contrast, sells chips into broad, diversified end markets and generates revenue from a vast catalog of proprietary analog and embedded products with long lifecycles — many lasting decades.
Growth Dynamics: LRCX has posted significantly stronger top-line expansion, with trailing 12-month revenue growth of approximately 25.7%, fueled by AI-related investment in advanced nodes, high-bandwidth memory, and advanced packaging. TXN has delivered more moderate revenue growth of approximately 9.9% on a trailing basis, driven by cyclical recovery in industrial markets and accelerating data center sales, but tempered by automotive headwinds.
Risk Profile: LRCX carries a beta of 1.80, indicating significantly higher sensitivity to market swings. Its concentrated exposure to China and dependence on large customers' spending cycles introduce geopolitical and cyclical risks. TXN, with a beta of 1.31, offers comparatively lower volatility, supported by a diversified customer base, a 1.9% dividend yield, and a long track record of returning capital to shareholders — including $6.7 billion returned over the trailing 12 months.
Valuation: LRCX trades at a forward P/E near 39.5, while TXN trades at a forward P/E near 37.6. The narrower-than-expected valuation gap suggests the market is pricing in TXN's stability and margin resilience alongside LRCX's higher growth rate.
Tickeron AI Verdict
Based on observable factors such as trend consistency, relative momentum, and current market positioning, Tickeron's AI analytical framework would likely tilt in favor of Texas Instruments (TXN) for risk-adjusted stability in the current environment. While Lam Research (LRCX) exhibits far stronger absolute momentum and benefits directly from the AI capital expenditure super-cycle, recent price action suggests a period of consolidation and potential mean reversion after a parabolic run. TXN, by contrast, presents a more balanced profile: a recovering industrial cycle, accelerating data center growth, healthier margins, and a lower beta. The AI's probabilistic assessment would likely recognize TXN's steadier trend structure, diversified revenue streams, and stronger free-cash-flow discipline as factors favoring more consistent near-term performance — though LRCX remains the higher-upside candidate should semiconductor equipment spending accelerate further.
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 TXN 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 whileTXN’s FA Score has 3 green FA rating(s).
- LRCX’s FA Score: 3 green, 2 red.
- TXN’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 4 TA indicator(s) are bullish while TXN’s TA Score has 2 bullish TA indicator(s).
- LRCX’s TA Score: 4 bullish, 6 bearish.
- TXN’s TA Score: 2 bullish, 6 bearish.
Price Growth
LRCX (@Electronic Production Equipment) experienced а -10.57% price change this week, while TXN (@Semiconductors) price change was -8.81% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -8.80%. For the same industry, the average monthly price growth was -19.09%, and the average quarterly price growth was +45.99%.
The average weekly price growth across all stocks in the @Semiconductors industry was -9.55%. For the same industry, the average monthly price growth was -15.20%, and the average quarterly price growth was +39.11%.
Reported Earning Dates
LRCX is expected to report earnings on Jul 29, 2026.
TXN is expected to report earnings on Jul 22, 2026.
Industries' Descriptions
@Electronic Production Equipment (-8.80% 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 (-9.55% 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 | TXN | LRCX / TXN | |
| Capitalization | 392B | 258B | 152% |
| EBITDA | 8.07B | 8.82B | 92% |
| Gain YTD | 83.372 | 65.615 | 127% |
| P/E Ratio | 59.22 | 48.55 | 122% |
| Revenue | 21.7B | 18.4B | 118% |
| Total Cash | 1.68B | 5.1B | 33% |
| Total Debt | 3.73B | 14B | 27% |
LRCX | TXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 87 Overvalued | 72 Overvalued | |
PROFIT vs RISK RATING 1..100 | 19 | 28 | |
SMR RATING 1..100 | 17 | 31 | |
PRICE GROWTH RATING 1..100 | 37 | 41 | |
P/E GROWTH RATING 1..100 | 9 | 32 | |
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.
TXN's Valuation (72) in the Semiconductors industry is in the same range as LRCX (87) in the Electronic Production Equipment industry. This means that TXN’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's Profit vs Risk Rating (19) in the Electronic Production Equipment industry is in the same range as TXN (28) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TXN’s over the last 12 months.
LRCX's SMR Rating (17) in the Electronic Production Equipment industry is in the same range as TXN (31) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TXN’s over the last 12 months.
LRCX's Price Growth Rating (37) in the Electronic Production Equipment industry is in the same range as TXN (41) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TXN’s over the last 12 months.
LRCX's P/E Growth Rating (9) in the Electronic Production Equipment industry is in the same range as TXN (32) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TXN’s over the last 12 months.
| LRCX | TXN | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 67% | N/A |
| Stochastic ODDS (%) | 3 days ago 90% | 3 days ago 62% |
| Momentum ODDS (%) | 3 days ago 63% | 3 days ago 74% |
| MACD ODDS (%) | 3 days ago 70% | 3 days ago 67% |
| TrendWeek ODDS (%) | 3 days ago 62% | 3 days ago 61% |
| TrendMonth ODDS (%) | 3 days ago 68% | 3 days ago 57% |
| Advances ODDS (%) | 11 days ago 83% | 10 days ago 59% |
| Declines ODDS (%) | 3 days ago 63% | 3 days ago 57% |
| BollingerBands ODDS (%) | 3 days ago 90% | 3 days ago 73% |
| Aroon ODDS (%) | 3 days ago 82% | N/A |
Advertisement
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% | -2.39% | ||
| AMAT - LRCX | 89% Closely correlated | -5.57% | ||
| KLAC - LRCX | 88% Closely correlated | -3.02% | ||
| NVMI - LRCX | 84% Closely correlated | -3.03% | ||
| ASML - LRCX | 82% Closely correlated | -2.09% | ||
| ONTO - LRCX | 80% Closely correlated | -0.62% | ||
More | ||||