Caution Against Additional Buying After 40% Run Up

about 19 hours ago

Chip Stock Investor

"We're no longer buying Lam.. We thought it was cheap in 2023, obviously with all the other fab equipment providers. we thought it was still cheap in 2024 and through most of 2025, but then, 40% ish run up in the last couple of months. We're now saying be patient with LAM Research. We're not selling, we still have our position in Lam. It's part of our Fab five basket and the larger basket we have in the wafer fab equipment companies. But maybe just after the runup, as of late exercise, a bit of patience. But the upshot here is, and we'll, we'll monitor this, but it does seem that maybe, some of these forward valuations are implying not as good earnings growth in calendar year 2026 as Lam might actually be gearing up for."

The speaker advises investors to exercise patience with Lam Research after a significant 40% run up, suggesting that while their current position is maintained, the elevated valuation implies caution on further buying until clearer earnings growth materializes in 2026.

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