Polen Capital Management, LLC - Focus Growth Composite on Lam Research Corporation
Thesis
Lam Research is a leading wafer fabrication equipment supplier with particular strength in etch and deposition, two critical steps in producing increasingly complex semiconductors. Record March-quarter revenue and earnings per share were supported by AI-driven demand, and Polen sees Lam benefiting from investment in leading-edge logic, memory, high-bandwidth memory, advanced packaging, and data-center capacity. Its technology leadership and exposure to key AI supply-chain bottlenecks make it a direct beneficiary of the current infrastructure buildout.
“While the industry remains cyclical, Lam’s technology leadership and exposure to key AI supply-chain bottlenecks made it a clear beneficiary of the quarter’s market environment.”
Key risks
- The semiconductor equipment industry remains cyclical
- AI-related supply bottlenecks and capital spending could normalize