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LRCX vs TXN
Which Stock Would AI Choose? Lam Research Corporation (LRCX) vs. Texas Instruments Incorporated (TXN) Stock Comparison
Key Takeaways
- Texas Instruments (TXN) has delivered stronger year-to-date (YTD) performance at +53.74% compared to Lam Research (LRCX)'s +46.94%.
- Both stocks trade at elevated price-to-earnings (P/E) ratios around 45-47, reflecting high growth expectations in the semiconductor sector.
- TXN shows lower volatility with a beta of 0.99 versus LRCX's 1.79, appealing to stability-focused investors.
- Recent semiconductor sell-offs tied to U.S.-China tensions have pressured LRCX more acutely, while TXN benefits from strong quarterly results and analyst upgrades.
- Tickeron's AI trading bots highlight opportunities in semiconductors, with top performers showing annualized returns up to +164%.
Introduction
Lam Research Corporation (LRCX) and Texas Instruments Incorporated (TXN) are key players in the semiconductor industry, with LRCX focusing on fabrication equipment and TXN on analog and embedded chips. This comparison is relevant for traders eyeing semiconductor trends driven by artificial intelligence (AI) demand and supply chain dynamics. Investors balancing growth potential against volatility, or those tracking relative performance in recent market activity, will find insights into momentum, valuation, and sector risks here. Both stocks have surged amid broader tech rallies but face headwinds from geopolitical tensions.
LRCX Overview and Recent Performance
Lam Research Corporation designs and manufactures semiconductor processing equipment for integrated circuit fabrication, serving major chipmakers globally. With a market capitalization of approximately $314 billion, the company benefits from AI-driven demand for advanced nodes. In recent weeks, LRCX shares have traded around $251, down from a 52-week high of $275 amid a broader semiconductor sell-off linked to U.S.-China trade tensions and shipment halts to Chinese firms. Despite this, the stock gained about 13.8% over the past month, outperforming the S&P 500's 9.7%, supported by strong momentum and analyst optimism on AI infrastructure spending. Its trailing P/E ratio stands at 47.4, with robust profitability evidenced by a 30.9% profit margin. Sentiment remains positive long-term, though short-term pressures from sector volatility persist.
TXN Overview and Recent Performance
Texas Instruments Incorporated produces analog and embedded processing semiconductors for industrial, automotive, and consumer applications. The company boasts a $241 billion market cap and serves diverse markets through power, signal chain, and microcontroller products. Recently, TXN shares hover near $265, up sharply with over 40% gains in the past month following strong Q1 results and positive guidance. Year-to-date performance reached +53.74%, outpacing peers, fueled by analyst upgrades like Bank of America's $320 price target. Trading at a P/E of 45.2 with a 2.14% dividend yield, TXN offers stability via a 29.1% profit margin and lower beta. Recent market activity reflects resilience amid semi volatility.
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Head-to-Head Comparison
LRCX and TXN both thrive in semiconductors but differ in business models: LRCX supplies wafer fabrication equipment tied to capital spending cycles, while TXN focuses on mature analog chips with steadier demand from end markets. Growth drivers include AI for both, yet TXN's embedded processing offers diversification beyond pure-play AI exposure. Recent momentum favors TXN with 40%+ monthly gains versus LRCX's 13.8%, though LRCX shows higher one-year returns at +253%. Risk factors highlight LRCX's greater sensitivity to geopolitical risks and higher beta, contrasting TXN's dividend-backed stability. Market sentiment leans toward TXN post-earnings, with comparable sector exposure but TXN exhibiting better short-term positioning.
Tickeron AI Verdict
Tickeron's AI currently favors TXN over LRCX due to superior recent momentum, YTD outperformance, analyst upgrades, and lower volatility amid sector pressures. While LRCX holds strong AI catalysts and trend consistency, TXN's relative stability and earnings beats position it probabilistically better in the near term.
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 Buy and TXN is a StrongBuy.
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 whileTXN’s FA Score has 3 green FA rating(s).
- LRCX’s FA Score: 4 green, 1 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 4 bullish TA indicator(s).
- LRCX’s TA Score: 4 bullish, 4 bearish.
- TXN’s TA Score: 4 bullish, 4 bearish.
Price Growth
LRCX (@Electronic Production Equipment) experienced а +20.95% price change this week, while TXN (@Semiconductors) price change was +5.63% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +16.18%. For the same industry, the average monthly price growth was +16.71%, and the average quarterly price growth was +167.72%.
The average weekly price growth across all stocks in the @Semiconductors industry was +5.22%. For the same industry, the average monthly price growth was +11.55%, and the average quarterly price growth was +112.89%.
Reported Earning Dates
LRCX is expected to report earnings on Aug 05, 2026.
TXN is expected to report earnings on Jul 22, 2026.
Industries' Descriptions
@Electronic Production Equipment (+16.18% 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 (+5.22% 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 | 459B | 274B | 168% |
| EBITDA | 8.07B | 8.82B | 92% |
| Gain YTD | 114.540 | 75.587 | 152% |
| P/E Ratio | 69.34 | 51.47 | 135% |
| Revenue | 21.7B | 18.4B | 118% |
| Total Cash | 4.75B | 5.1B | 93% |
| Total Debt | 3.73B | 14B | 27% |
LRCX | TXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 36 | 71 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | 69 Overvalued | |
PROFIT vs RISK RATING 1..100 | 2 | 22 | |
SMR RATING 1..100 | 17 | 31 | |
PRICE GROWTH RATING 1..100 | 2 | 38 | |
P/E GROWTH RATING 1..100 | 6 | 25 | |
SEASONALITY SCORE 1..100 | 50 | 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 (69) in the Semiconductors industry is in the same range as LRCX (88) 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 (2) in the Electronic Production Equipment industry is in the same range as TXN (22) 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 (2) in the Electronic Production Equipment industry is somewhat better than the same rating for TXN (38) in the Semiconductors industry. This means that LRCX’s stock grew somewhat faster than TXN’s over the last 12 months.
LRCX's P/E Growth Rating (6) in the Electronic Production Equipment industry is in the same range as TXN (25) in the Semiconductors industry. This means that LRCX’s stock grew similarly to TXN’s over the last 12 months.
| LRCX | TXN | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 64% | 4 days ago 63% |
| Stochastic ODDS (%) | 4 days ago 74% | 4 days ago 70% |
| Momentum ODDS (%) | 4 days ago 85% | 4 days ago 65% |
| MACD ODDS (%) | 4 days ago 77% | 4 days ago 53% |
| TrendWeek ODDS (%) | 4 days ago 81% | 4 days ago 61% |
| TrendMonth ODDS (%) | 4 days ago 81% | 4 days ago 57% |
| Advances ODDS (%) | 4 days ago 82% | 4 days ago 58% |
| Declines ODDS (%) | 11 days ago 64% | 6 days ago 56% |
| BollingerBands ODDS (%) | 4 days ago 73% | 4 days ago 62% |
| Aroon ODDS (%) | 4 days ago 81% | 4 days ago 49% |
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